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Archive for July, 2009

Market Continues to Adjust while Creating Exciting Opportunities for Buyers

Thursday, July 23rd, 2009

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

Analyzing the growth within Wilmington’s five major zip codes, our average sales price has decreased 8.9% over year end 2008 which is a decrease of .07% from last quarter. When we look at the median sales price, we had a 9.9% decrease over year-end 2008 which is a 3.5% decrease over last quarter.

  • Sellers received 95.4% of the asking price in 2008, compared to 93.8% for 2nd Quarter 2009.
  • 2nd Quarter 2009 had an increase in the number of sold homes by 58.1% from 1st Quarter 2009.

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 2nd Quarter Average Selling Price

 

2nd Quarter 2009 – 28403 Zip Code

  • The average selling price of $228,909 has decreased 6.5% under the 2008 year-end average selling price of $244,932.
  • 11.2% of sellers in 2nd quarter paid a concession compared to 16.5% in 2008. 
  • The average list price of $245,395 for 1st quarter has decreased 7.1% over the 2008 year-end average list price of $264,105.
  • The average number of days a property remained on the market for 2nd quarter was 166 days compared to 112 days for year-end 2008. 
  • The median sold price of $182,938 for 2nd quarter has decreased 6.2% from year-end 2008.
  • Sold homes in 2nd quarter received 93.2% of the asking price, an increase from 92.4% year-end 2008.

2nd Quarter 2009 – 28405 Zip Code

  • The average selling price of $248,234 has decreased 16.2% over the 2008 year-end average selling price of $296,397.
  • 31.7% of sellers in 2nd quarter paid a concession compared to 18.5% in 2008.
  • The average list price of $264,079 for 2nd quarter has decreased 14.9% from the 2008 year-end average list price of $310,425.
  • The average number of days a property remained on the market for 2nd quarter was 121 days compared to 109 days for year-end 2008.
  • The median sold price of $186,500 for 2nd quarter has matched exactly $186,500 from year-end 2008.
  • Sold homes in 2nd quarter received 94.0% of the asking price, a decrease from 95.5% year-end 2008.

2nd Quarter 2009 – 28409 Zip Code

  • The average selling price of $274,570 has decreased 14.1% over the 2008 year-end average selling price of $319,619.
  • 26.8% of sellers in 2nd quarter paid a concession compared to 14.1% in 2008. 
  • The average list price of $290,652 for 2nd quarter has decreased 13.7% over the 2008 year-end average list price of $336,701. 
  • The average number of days a property remained on the market for 2nd quarter was 137 days compared to 121 days for year-end 2008. 
  • The median sold price of $229,000 for 2nd quarter has decreased 10.2% from year-end 2008.
  • Sold homes in 2nd quarter received 94.4% of the asking price, a decrease from 94.9% year-end 2008.

2nd Quarter 2009 – 28411 Zip Code

  • The average selling price of $305,237 has decreased 4.0% over the 2008 year-end average selling price of $317,945.
  • 20.6% of sellers in 2nd quarter paid a concession compared to 25.2% in 2008. 
  • The average list price of $328,704 for 2nd quarter has decreased .07% over the 2008 year-end average list price of $330,870. 
  • The average number of days a property remained on the market for 2nd quarter was 153 days compared to 111 days for year-end 2008. 
  • The median sold price of $223,900 for 2nd quarter has decreased 7.9% from year-end 2008.
  • Sold homes in 2nd quarter received 92.8% of the asking price, a decrease from 96.0% year-end 2008.

2nd Quarter 2009 – 28412 Zip Code

  • The average selling price of $188,404 has decreased 11.2% over the 2008 year-end average selling price of $212,101.
  • 30.5% of sellers in 2nd quarter paid a concession compared to 23.7% in 2008. 
  • The average list price of $197,500 for 2nd quarter has decreased 10.0% over the 2008 year-end average list price of $219,554. 
  • The average number of days a property remained on the market for 2nd quarter was 130 days compared to 113 days for year-end 2008. 
  • The median sold price of $169,900 for 2nd quarter has decreased 10.6% from year-end 2008.
  • Sold homes in 2nd quarter received 95.3% of the asking price, a decrease from 96.6% year end 2008.

Summary

Our market during the second quarter continues to adjust. Among the positive features to assist homebuyers:

  • Mortgage rates have been between 4.5% to 5.5% – some of the lowest rates in 30 years.
  • The current inventory of homes is high – from 13 to 15 months supply.
  • For First Time homebuyers, the $8,000 tax credit is available until December 1, 2009.

The downside has several factors: 

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

Our median sales price for 2nd quarter ($195,000) reflects a small downturn of 9.6% from 2008 ($216,500). In 2nd quarter 2009, we continue to see market corrections and adjustments in average sales price; overall, we decreased 8.9% from year-end 2008. All five zip codes had average sold price decreases from 4.0% to 16.2%, over year end 2008.

All five zip codes had an increase in concessions offered to buyers on the sales price; concessions are now offered in 11.2% to 31.7% of the transactions in 2nd quarter 2009.
Our market has experienced an increase of 58.1% in number of homes sold in 2nd quarter 2009 compared to 1st quarter 2009. All five zip codes experienced a growth in the number of homes sold from last quarter to this quarter which is an increase from 32% to 200% plus. This is typical for the second quarter of the year.

Our list to sales price ratio for the 2nd quarter 2009 is 93.8%, a slight decrease from 95.5% for 2008. Sellers in 28412 got about 95.3% of their asking price while those in 28411 only got 92.8% of their asking price. Zip code 28403 and 28411 had the greatest success in 2nd quarter 2009 over 1st quarter 2009. 28403 had a 10.2% increase in avg. sold price, a 11.3% increase in avg. list price, a 13.4% increase in median sold price, and a 200% increase in sold units – we went from 34 sold homes to 98 sold homes during this quarter. 28411 had a 13.7% increase in avg. sold price, a 14.7% increase in avg. list price, a 6.6% increase in median sold price, and a 48% increase in sold units – we went from 88 sold homes to 131 sold homes during this quarter. 

2009 will be a good market for our area with the inventory of homes available and interest rates being low. Now is the perfect time to buy!

Contact a REALTOR® to discuss your specific area and discover what options are available to you. The expertise and services a REALTOR® can provide will help you take advantage of this once in a lifetime opportunity. Don’t miss out – call a REALTOR® today!

An Analysis of information from the Wilmington Regional Association of REALTORS®, Incorporated, for the period Jan. 1, 2005 through June 30, 2009 – data pulled on July 13, 2009.

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