The fall season offers some exciting news for both buyers and sellers in the Wilmington area. During the third quarter, our local market showed improved numbers over earlier this year and year-end 2008. This is a significant indicator that the housing market is stabilizing and beginning to recover. 

When analyzing the growth within the five major Wilmington zip codes, our average sales price has decreased 15.2% over year end 2008 which is only a decrease of 6.9% from last quarter. When we look at the median sales price, we have a 13.0% decrease over year-end 2008 and a 3.2% decrease over last quarter.

• Sellers received 95.4% of the asking price in 2008, compared to 95.5% for 3rd Quarter 2009.
• 3rd Quarter 2009 had an increase in the number of sold homes by 11.6% from 2nd Quarter 2009. 
• September 2009 was particularly significant because the number of sold homes during that month also outpaced levels achieved in September 2008. This is the first time in over three years that this has happened.

Over the last couple of years, an analysis of five Wilmington zip codes – 28403, 28405, 28409, 28411, and 28412 was conducted. The areas of focus were:  

• Sellers Concessions – The amount of money a seller of a house contributes toward the buyers purchase.
• List Price – The amount of money a home is listed on the market.
• Selling Price – The price the seller accepts for his or her house.
• Days on Market – The number of days a house remains for sale, from the listing date to the date the property is placed under contract.
• List to Sales Price Ratio – The difference between the list price and the selling price shown as a percentage.

2008 Year-End Average Selling Price vs. 2009 3rd Quarter Average Selling Price

3rd Quarter 2009 – 28403 Zip Code

• The average selling price of $192,580 has decreased 21.4% under the 2008 year-end average selling price of $244,932.
• 21.3% of sellers in 3rd quarter paid a concession compared to 16.5% in 2008. 
• The average list price of $202,337 for 3rd quarter has decreased 23.4% over the 2008 year-end average list price of $264,105.
• The average number of days a property remained on the market for 3rd quarter was 122 days compared to 112 days for year-end 2008. 
• The median sold price of $159,500 for 3rd quarter has decreased 18.2% from year-end 2008.
• Sold homes in 3rd quarter received 95.2% of the asking price, an increase from 92.4% year-end 2008.

3rd Quarter 2009 – 28405 Zip Code

• The average selling price of $245,441 has decreased 17.2% over the 2008 year-end average selling price of $296,397.
• 20.7% of sellers in 3rd quarter paid a concession compared to 18.5% in 2008. 
• The average list price of $261,798 for 3rd quarter has decreased 15.7% from the 2008 year-end average list price of $310,425. 
• The average number of days a property remained on the market for 3rd quarter was 140 days compared to 109 days for year-end 2008. 
• The median sold price of $186,000 for 3rd quarter has matched almost exactly $186,500 from year-end 2008.
• Sold homes in 3rd quarter received 93.8% of the asking price, a decrease from 95.5% year-end 2008.

3rd Quarter 2009 – 28409 Zip Code

• The average selling price of $312,199 has decreased 2.3% over the 2008 year-end average selling price of $319,619.
• 15.7% of sellers in 3rd quarter paid a concession compared to 14.1% in 2008. 
• The average list price of $332,776 for 3rd quarter has decreased 1.2% over the 2008 year-end average list price of $336,701. 
• The average number of days a property remained on the market for 3rd quarter was 128 days compared to 121 days for year-end 2008. 
• The median sold price of $240,000 for 3rd quarter has decreased 5.9% from year-end 2008.
• Sold homes in 3rd quarter received 93.8% of the asking price, a decrease from 94.9% year-end 2008.

3rd Quarter 2009 – 28411 Zip Code

• The average selling price of $250,287 has decreased 21.3% over the 2008 year-end average selling price of $317,945.
• 21.5% of sellers in 3rd quarter paid a concession compared to 25.2% in 2008. 
• The average list price of $259,059 for 3rd quarter has decreased 21.7% over the 2008 year-end average list price of $330,870. 
• The average number of days a property remained on the market for 3rd quarter was 127 days compared to 111 days for year-end 2008. 
• The median sold price of $211,450 for 3rd quarter has decreased 13.0% from year-end 2008.
• Sold homes in 3rd quarter received 96.6% of the asking price, an increase from 96.0% year-end 2008.

3rd Quarter 2009 – 28412 Zip Code

• The average selling price of $189,593 has decreased 10.6% over the 2008 year-end average selling price of $212,101.
• 25.0% of sellers in 3rd quarter paid a concession compared to 23.7% in 2008. The average list price of $199,122 for 3rd quarter has decreased 9.3% over the 2008 year-end average list price of $219,554.
• The average number of days a property remained on the market for 3rd quarter was 142 days, compared to 113 days for year-end 2008. 
• The median sold price of $165,950 for 3rd quarter has decreased 12.6% from year-end 2008.
• Sold homes in 3rd quarter received 95.2% of the asking price, a decrease from 96.6% year end 2008.

Summary

Our third quarter has shown limited, but significant progress. Now is the best time to buy with several positive indicators:

• Mortgage rates on a 30 year fixed loan are just below 5.0% – some of the lowest rates in 30 years.
• Current inventory of homes is high – from 13 to 15 months supply. 
• For first-time homebuyers, the $8,000 tax credit is still available until November 30, 2009.

While there is lots of conversation about expanding and extending this tax credit, it has not been approved as of the writing of this article. The downside has several factors:

• Qualified buyers are finding lending standards to be a lot tighter, from the need for higher credit scores and loan program restrictions.
• Sales are also suffering from the current foreclosures and short sales in the market. As these take place, we are finding new issues with appraisals having lower values and taking longer due to new appraisal rules.

Our market has experienced a sizeable increase of 11.6% in number of homes sold in 3rd quarter 2009 compared to 2nd quarter 2009. Sales to first-time home buyers are helping to drive this increase. In 3rd quarter 2009, we continue to see market corrections and adjustments in average sales price; overall, we decreased 15.2% from year-end 2008. All five zip codes had average sold price decreases from 2% to 21% over year end 2008. Our list to sales price ratio for the 3rd quarter 2009 is 95.05%, a slight decrease from 95.5% for 2008. The average list price of the sold properties is $245,972 and is down 14.9% from year end 2008.

Concessions offered to buyers are now offered in 15.7% to 25% of the transactions in 3rd quarter 2009. Our median sales price for 3rd quarter ($188,450) reflects a downturn of 13.0% from 2008 ($216,500). Our overall average days on the market are 133, an increase of 20 days from year end 2008. Sellers in 28411 got about 96.6% of their asking price while those in 28405 & 28409 only got 93.8% of their asking price. All four zip codes had an increase in units sold except for 28403. 2009 will prove to be a time when our market stabilized. With the current inventory of homes available and low interest rates, now is the best time in history to buy a home!

An Analysis of information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through September 30, 2009 – data pulled on October 14, 2009.