April 10th, 2013 11:24 AM by Andrew Walter May CEO
The Triangle is experiencing the front-end of the resurgence in home sales. One of the primary reasons for this change is JUMBO pricing on mortgages. At ADRMortgage.com mortgage expert, Andy May, has access to dozens of lenders that compete for jumbo product. We quoted someone 3.25% on a 30 year fixed VA Jumbo loan today - paying all closing costs and then some. So, obviously the market is enabling people to buy bigger homes again.
As a result, home prices, sales, and activity in the Triangle are moving north. For example RRAR's Local Market Update indicates the following:
February 2013/2012 -
Listings up 10.3%
Closed Sales up 9.8%
Median and Average Sales Price - up 4.6% and 2.2%
Dollar residential sales volume - up 12.5%
Days on Market - down 11% (to 119 days)
Most telling are the inventory levels. Consumers that had to sell have already done so. The stats that foreshadow a "sellers" market in the near future are the following two stats:
Inventory of Homes for Sale - Down 13% to 12,804 homes in the entire Triangle and
Months Supply of Inventory - Down 28% to a 6 month supply.
When supply reaches 3 months, it is an indication of a pure sellers market. At 6 months, it's a strong sellers market. And as history has shown, over 9 months represents a Buyers' market.
So, for those fence sitters, get ready for multiple offer properties when the spring home buyer season gets in full swing! And congrats to the Durham Bulls for winning their home opener. GO CANES! Support your local sports teams. Take care all.