The real estate market in Cary is starting to show signs of recovery.
Inventory is now stabilizing and home sales are starting to level off rather than continue to decline. That said, here is a look at the current real estate market in Cary.
So, what is going on that's affecting the market?
1. Families relocating to this area are finally selling their homes in other areas in order to relocate.
2. Downward pressure on real estate prices has made areas closer to Research Triangle Park more affordable. The Median Priced Home in Cary is currently $220k.
3. Unemployment is hovering at 7.5%. There are a lot of people that have relocated to the area without jobs hearing about our great economy and strong job growth which has put pressure on the job market.
4. While we were one of the last markets to join the recession we have seen a downturn in overall market activity year over year.
5. LIFO market - we are expected to be one of the first markets to recover.
6. Anyone that purchased after the peak in 2006 will have difficulty making a profit if they were to sell today.
Here are the current market details through Q42011:
• Inventory is declining. New home inventory decreased 35%.
• Median Sales Price has declined 1% in Cary (I always tell clients that are relocating to the area that we did not see the huge price fluctuations we have seen in other parts of the country)
• Initial price in selling a home is very important. If a seller lists their property correctly the homes sold in an average of 57 days at 97% of list price. However, if a seller has to reduce the price of their home they are netting 90% of List Price and 172 Days on Market.
• The supply of homes in this area is 6 months of inventory which is considered to be a balanced market.
• Closings are down 26% Q42011 and 22% YTD.
• Average Days on Market YTD 2011 is stabilizing-87 DOM, 97 for the Triangle Area
• There are fewer buyers in Cary, and fewer pendings, than in Cary in the higher price ranges(400k+).
• Availability of new construction and builders willingness to negotiate on price is having a substantial impact on the resale inventory.
The real estate market has leveled off and stabilized. However we will face challenges well into 2012 for several reasons:
1.The housing market has stabilized in that we are seeing fewer foreclosures and distressed properties in the area.
2. Consumer worries about the economy and when we will recover from the recession.
3. Instability of the dollar and the global markets.
4. Fluctuation and uncertainty of the US Stock Market.
5. Tightened lending requirements.
6. Families relocating to the area are having trouble selling their homes prior to relocating.