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September Real Estate Market Update - Davidson, NC

by Mayes Harris Team

We are starting off the review of the Davidson Market for September with homes for sale. If you look at the visual below you will see that in 2016, there were 115 homes for sale and that number increased by 3.5 percent in 2017, to 119 homes for sale. In 2018, we further increased the number of homes for sale in September by 8.4 percent to 129 homes for sale.

The next graph is the median sales price. In 2016, the median sales price was $436,752 and that number actually decreased by 22.3 percent the following year, 2017, to $339,250. In 2018, however, the median sales price increased by 37.2 percent to $465,305! That was more than both 2016 and 2017!

Next, the median list to close days shows us how many days on the market the property was from the time it was listed until the time it closed. In 2016, and 2017, the time was very similar and only varied by 1 day. In 2018, the list to close days was increased by 20.8 percent to 93 days. 

The next visual is very interesting and this shows the median showings to pending. As you can see, in 2016, it was 15 showings and in 2017, it was 17 showings. We jumped up to 21 showings in 2018, which was a 23.5 percent increase from 2017.

Our last visual is of the September Median  Percent of Original Price - AVERAGE. In 2016, it was 97.8 percent of the original price and in 2017, that number decreased slightly by .2 percent to 97.6 percent of the original price. In 2018, another slight decrease from the previous year of 3.4 percent to 94.3 percent of the list price. Remember the sales price increased in 2018, by 37.2 percent and so that makes a huge difference!! 

Hopefully, this overview will help you decide if now is the right time to put your home on the market. Please contact me if you have questions or need assistance.

September 2018 RE/MAX National Housing Report

by Mayes Harris Team

The RE/MAX National Housing Report for September 2018 showed the trends of fewer closings and stabilizing inventory continued through September, punctuated by a surprisingly big 11.6% year-over-year drop in home sales. At the same time, the RE/MAX National Housing Report for September 2018 posted a Median Sales Price of $241,000 that marked the 30th consecutive month of year-over-year price increases. It is the highest September price in the 10-year history of the report. 
 
The decline in home sales year-over-year was the largest since May of 2011, as September became the seventh month of 2018 to record lower sales than 2017. Even so, year-to-date 2018 home sales resemble 2017’s.
 
“The big drop in September closings catches your attention. The market is clearly rebalancing as buyers and sellers continue to process the increasing interest rate environment and what that means to them,” said RE/MAX CEO Adam Contos. “The slower drop in inventory – a visible trend for nearly half a year – further illustrates the ongoing shift toward market equilibrium, and that’s healthy in the long-term.”

Active inventory dropped for the 119th consecutive month, the decline of 4.7% from September 2017 was the smallest year-over-year decrease since August 2014. In addition, the September year-over-year inventory drop was the fifth consecutive month in 2018 to post single-digit percent declines rather than the double-digit monthly drops consistently seen over the previous three years.

 
“It’s a little surprising to see prices staying so strong, but it’s hardly shocking in such a tight market,” said Contos. “The headwinds of rising prices and interest rates amid already tight inventory levels have been crimping affordability and slowing sales for most of the year, but it varies by geography.  In circumstances like these, where the market is tricky to navigate, both buyers and sellers can benefit by aligning themselves with a professional agent – a local expert who can cut through the noise and advocate on their behalf.”
 
Other highlights include:
Home prices rose by 5.6% over September 2017, more than twice the year-over-year price increase of 2.3% from September 2016 to September 2017. That reversed a trend seen in the previous three months, when year-over-year price increases trailed 2017’s rate of growth.
Months Supply of Inventory totaled 3.7, which is the second-lowest for September in report history, second only to 3.6 months in September 2017.
Days on Market of 46 was a September record for the report – three days less than September 2017.
 
Closed Transactions
Of the 54 metro areas surveyed in September 2018, the overall average number of home sales is down 24.4% compared to August 2018, and down 11.6% compared to September 2017. Six of the 54 metro areas experienced an increase in sales year-over-year, including Orlando, FL, +17.2%, Tampa, FL, +8.5, Miami, FL, +6.8% and Birmingham, AL at +4.0%.
 
Median Sales Price – Median of 54 metro median prices
In September 2018, the median of all 54 metro Median Sales Prices was $241,000, down 3.2% from August 2018 and up 5.6% from September 2017. Only three metro areas saw a year-over-year decrease in Median Sales Price; Birmingham, AL, -2.1%, Anchorage, AK, -2.0% and Honolulu, HI, -1.7%. Seven metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Boise, ID, +17.9%, Manchester, NH, +13.4% and Salt Lake City, UT, +11.9%.  
 
Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in September 2018 was 46, up three days from the average in August 2018, and down 3 days from the September 2017 average. The metro areas with the lowest Days on Market were Omaha, NE, at 19, San Francisco, CA, at 26, Seattle, WA, at 27, and five markets tied at 29 –Denver, CO, Cincinnati, OH, Indianapolis, IN, Las Vegas, NV, and Salt Lake City, UT. The highest Days on Market averages were in Augusta, ME, at 90, Burlington, VT, at 87, Hartford, CT at 81 and Miami, FL, at 79. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
 
Months Supply of Inventory – Average of 54 metro areas
The number of homes for sale in September 2018 was down 1.0% from August 2018 and down 4.7% from September 2017. Based on the rate of home sales in September, the Months Supply of Inventory increased to 3.7 from 3.0 in August 2018 and increased compared to September 2017 at 3.6. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In September 2018, all but two of the metro areas surveyed – Miami, FL, at 8.0 and New York, NY, at 6.0 – reported a months supply less than 6.0, which is typically considered a seller’s market. The markets with the lowest Months Supply of Inventory are San Francisco, CA at 1.9, Boise, ID, and Denver, CO, at 2.0 and Salt Lake City, UT, and Omaha, NE, both at 2.3. 
 

About the RE/MAX Network

As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with over 120,000 agents in more than 100 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Mortgage, a ground-breaking mortgage franchisor, in 2016 and acquired booj, a real estate technology company, in 2018. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home Listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit www.remax.com/newsroom.
 
Description
The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 54 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.
 
Definitions
Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pended) during the month. Where “pended” data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median of the median sales prices in each of the metro areas included in the survey.  
 
MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report re-calculates the previous period’s data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

The September 2018 RE/MAX National Housing Report infographic shows housing market trends throughout 54 metro areas. The report is based on MLS information, includes all residential properties and is not annualized.

 

An Increase in Housing Inventory Has Sparked Two Different Reactions

by Mayes Harris Team

In a recent article, National Housing Inventory Crisis Reaches Inflection Point, realtor.com reported that:

  1. New Listings jumped 8% year-over-year nationally, the largest increase since 2013
  2. Total Listings in the 45 largest markets are now up 6% on average over last year

This increase in housing inventory has sparked two different reactions. Some are saying this is the first sign of a potential collapse while others are saying it is a welcomed reprieve from the lack of inventory that has stalled the market recently. As Zelman & Associates reported in a recent ‘Z Report’:

With the rate of home price appreciation starting to decelerate alongside the uptick in inventory, we expect significant debate whether this is a bullish or bearish sign.

Is this a sign the market might crash?

There are those who look at the increase in inventory as a sign that we are returning to the market we saw last decade. However, a closer look shows that we are nowhere near the levels of inventory we reached before the crash in 2008.

A normal market would have about 6-months inventory, but the latest Existing Home Sales Report issued by the National Association of Realtors revealed that:

Unsold inventory is at a 4.3-month supply at the current sales pace up from 4.1 months a year ago.

A decade ago, prices began to rapidly depreciate in June 2007. At that time, we had a 9.1-month supply (more than double what it is today) and inventory kept rising until it hit a peak of 11.1 months in April of 2008.

With the current levels of buyer demand, any such increase in months supply is highly unlikely. As Danielle Hale, realtor.com’s Chief Economist explains:

After years of record-breaking inventory declines, September’s almost flat inventory signals a big change in the real estate market. Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more Listings materialize. But don’t expect the level to jump dramatically.

Plenty of buyers in the market are scooping up homes as soon as they’re listed, which will keep national increases relatively small for the time being.

What will be the result of the increase in inventory?

The increase in inventory will allow many families who had been unable to find a home to finally become homeowners. Again, we quote from the ‘Z Report’:

In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.

Bottom Line

If you are either a first-time or second-time buyer who has given up, let’s get together discuss the inventory available in our market.

Less Than a Fifty Dollar Difference In Renting vs Buying in 6 States

by Mayes Harris Team

Is that not an amazing statement to ponder. Guess where we, North Carolinians, fall in that category? Yes! We are within those 6 states where there is less than a fifty dollar difference in renting vs. buying.

And according to a study by GoBankingRates, it is cheaper to buy a home than rent in 38 states across the country and nationwide, it is now 26.3% cheaper to buy.  All this is pointing to one action! Buy now if you are the slight bit interested in upsizing, buying your first home or even downsizing. Now is the time. Contact us if you need assistance or have questions.

October Events Coming Up In The Lake Norman Area

by Mayes Harris Team

OCTOBER 6TH -

18th Annual All American Dog Show  
Free admission. 
Location: Robbins Park, Cornelius
Time: 3 pm - 6 pm

Ada Jenkins 2nd Annual Food Fight  
Tickets are $25 for adults & $5 for kids under 14
Location: Ada Jenkins, 212 Gamble Street, Davidson
Time: 11:30 am - 2 pm

SOMA Davidson Fall Fest
Free admission.
Location: 428 S. Main St., Davidson
Time: 2 pm - 7 pm

OCTOBER 12TH -

2nd Friday Street Festival   - LAST ONE!
Free admission 
Location: Oak Street Mill, 19725 Oak Street, Cornelius
Time: 6 pm - 10 pm

Uncorked and Artsy  
$25 per person, $30 at the gate
Location: Downtown Mooresville, Broad & Main Streets
Time: 6 pm - 9 pm

OCTOBER 13TH -

Reeves Temple Fall Carnival  
Ticket prices TBA
Location: Reeves Temple, AME Zion Church, 213 Watson Street, Davidson
Time: 11 am - 4 pm

The Huntersville Fall Festival  
Free admission
Locaton: Barnette Elementary School, 13659 Beatties Ford Road, Huntersville
Time: 10 am - 4 pm

The Lake Norman Wildlife Conservations Oyster and Shrimp Festival  
VIP tickets $100, general admission $60
Location: LangTree Lake Norman, 401 Langtree Road, Mooresvile
Time: 5 pm - 10 pm

OCTOBER 19TH -

Carolina Balloonfest  
General admission prices vary
Locaton: Statesville Regional Airport, 260 Hangar Drive, Statesville
Time: October 19th: 3 pm - 8:30 pm 
October 20th: 7 am - 8:30 pm
October 21st: 7 am - 6 pm

OCTOBER 20TH - 

Laketoberfest  
Free admission and parking
Location: Bailey Road Park, 11536 Bailey Road, Cornelius
Time: 4 pm - 9 pm

Halloween in Huntersville  
Free admission
Location: Historic Rural Hill, 4431 Neck Road, Huntersville
Time: 4 pm - 8 pm

Fall Community Extravaganza
Free admission
Location: Huntersville United Methodist Church, 14005 Stumptown Road, Huntersville
Time: 8:30 am - 2 pm

OCTOBER 26TH -

Davidson Halloween March 
Free admission
Location: Davidson Town Hall, 216 S. Main Street, Davidson
Time: Parade begins at 5 pm

OCTOBER 28TH - 

Dogtoberfest  
Free admission
Location: LakeCross Veterinary, 106 Parr Drive, Huntersville
Time: 2 pm - 5 pm

ONGOING -

The 2018 Rural Hill Amazing Maize Maze - Through November 4th
Ticket prices vary
Location: Rural Hill, 4431 Neck Road, Huntersville

 

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