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Archive for April, 2009

The Start of the Real Estate Rebound: 2009 1st Quarter Market Report

Thursday, April 23rd, 2009

By April McDavid ABR, CRS, CSP, GRI, RRS
President, Wilmington Regional Association of REALTORS®

Analyzing the growth within the five major Wilmington zip codes, first quarter 2009 will be known as the start of the real estate rebound. Our pending homes sales index is up 44.2% over December 31, 2008. These sales will close in the second quarter of 2009. Our average sales price has decreased 8.4% over year end 2008 which is only a .03% decrease from year end 2005. When we look at the median sales price, we have a 7.6% decrease over year-end 2008 and a 7.2% gain over year-end 2005.

• Sellers received 95.5% of the asking price in 2008, compared to 93.7% for 1st Quarter 2009.
• 1st Quarter 2009 had a decrease in the number of sold homes by 22.7% from 4th Quarter 2008.

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 1st Quarter Average Selling Price

1st Quarter 2009   28403 Zip Code

 The average selling price, of $207,689 has decreased 15.3% under the 2008 year-end average selling price of $244,932.
 11.5% of sellers in 1st quarter paid a concession, compared to 16.5% in 2008.
 The average list price of $220,562 for 1st quarter has decreased 16.5% over the 2008 year-end average list price of $264,105.
 The average number of days a property remained on the market for 1st quarter was 164 days, compared to 112 days for year-end 2008.
 The median sold price of $161,313 for 1st quarter has decreased 17.3% from year-end 2008.
 Sold homes in 1st quarter received 94.2% of the asking price, an increase from 92.7% year-end 2008.

1st Quarter 2009   28405 Zip Code

 The average selling price, of $314,492 has increased 6.1% over the 2008 year-end average selling price of $296,397.
 8.8% of sellers in 1st quarter paid a concession, compared to 18.5% in 2008.
 The average list price of $337,025 for 1st quarter has increased 8.6% from the 2008 year-end average list price of $310,425.
 The average number of days a property remained on the market for 1st quarter was 179 days, compared to 109 days for year-end 2008.
 The median sold price of $215,000 for 1st quarter has increased 15.3% from year-end 2008.
 Sold homes in 1st quarter received 93.3% of the asking price, a decrease from 95.5% year-end 2008.

1st Quarter 2009   28409 Zip Code

 The average selling price, of $275,381 has decreased 13.8% over the 2008 year-end average selling price of $319,619.
 15.8% of sellers in 1st quarter paid a concession, compared to 14.1% in 2008.
 The average list price of $298,046 for 1st quarter has decreased 11.5% over the 2008 year-end average list price of $336,701.
 The average number of days a property remained on the market for 1st quarter was 136 days, compared to 121 days for year-end 2008.
 The median sold price of $245,445 for 1st quarter has decreased 3.7% from year-end 2008.
 Sold homes in 1st quarter received 92.4% of the asking price, a decrease from 94.9% year-end 2008.

1st Quarter 2009   28411 Zip Code

 The average selling price, of $267,408 has decreased 15.8% over the 2008 year-end average selling price of $317,729.
 25.6% of sellers in 1st quarter paid a concession, compared to 25.3% in 2008.
 The average list price of $285,033 for 1st quarter has decreased 13.8% over the 2008 year-end average list price of $330,705.
 The average number of days a property remained on the market for 1st quarter was 115 days, compared to 111 days for year-end 2008.
 The median sold price of $209,450 for 1st quarter has decreased 13.5% from year-end 2008.
 Sold homes in 1st quarter received 93.8% of the asking price, a decrease from 96.0% year-end 2008.

1st Quarter 2009   28412 Zip Code

 The average selling price, of $194,261 has decreased 8.4% over the 2008 year-end average selling price of $212,101.
 15.2% of sellers in 1st quarter paid a concession, compared to 23.7% in 2008.
 The average list price of $204,056 for 1st quarter has decreased 7.1% over the 2008 year-end average list price of $219,554.
 The average number of days a property remained on the market for 1st quarter was 150 days, compared to 113 days for year-end 2008.
 The median sold price of $188,675 for 1st quarter has decreased .07% from year-end 2008.
 Sold homes in 1st quarter received 95.2% of the asking price, a decrease from 96.5% year end 2008.

Summary

During the first quarter of 2009, we have seen a lot of historic changes – a new president, major economic stimulus packages, an $8,000 tax credit for first time homebuyers, and mortgage rates under 5%. Therefore, the first quarter helps us turn the corner. Our strong supply of housing inventory available makes this a very desirable time to purchase real estate.

Our median sales price for 1st quarter ($200,000) reflects a small downturn of 7.6% from 2008 ($216,500) and reflects an increase of 7.2% over 2005 ($186,500).

In 1st quarter 2009, we continue to see market corrections in average sales price; we decreased 8.4% from year-end 2008. Four zip codes had average sold price decreases from 8.4% to 15.8%, while one zip code 28405 managed increases of 6.1%.

A total of three zip codes had a decrease in concessions offered to buyers on the sales price; concessions are now offered in 8.8% to 25.6% of the transactions in 1st quarter 2009.

Our market has experienced a decline of 22.7% in number of homes sold in 1st quarter 2009 compared to 4th quarter 2008. All five zip codes experienced a decline from 5.5% to 33.3%. This is better than last quarter. Our list to sales price ratio for the 1st quarter 2009 is 93.7%, a slight decrease from 95.5% for 2008. Sellers in 28412 got about 95.2% of their asking price while those in 28409 only got 92.4% of their asking price. Zip code 28405 had the greatest success in 1st quarter 2009 with a 6.1% increase in avg. sold price, an 8.6% increase in avg. list price and a 15.3% increase in median sold price.

2009 will be a good market for our area with an inventory of homes available and interest rates low, this would make a great time to buy. Contact a REALTOR® to discuss your specific area and discover what options are available to you. The expertise and services they provide you can help you take advantage of exceptional market conditions. Don’t miss out on this once in a life-time opportunity. Act now and call a REALTOR® today!

*An Analysis of information from the Wilmington Regional Association of REALTORS® Incorporated, for the period Jan. 1, 2005 through March 31, 2009 – data pulled on April 15, 2009

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