Triangle Real Estate Market news for January 2012
The first month of 2012 was a good one for the local housing market. According to the report released by the Triangle Multiple Listing Service, of which we are members:
- home sales were up 7 percent compared to this time in 2011
- 52 percent of home sales included seller concessions
- average price of homes sold is down from last year, also 7 percent
- home showings increased by 10 percent
- pending sales are up by 30 percent
All in all, those are good metrics. While average price may be down, the rate at which they are being sold is ultimately more positive because more money is lost from “time on market.” In other words, it’s better for the seller to price the home correctly at the start of the listing as opposed to “hoping for more” at the outset and having to go through multiple adjustments along the way. A market would rather see number of sales increase than average price increase because it indicates more buyers are in the market.
Also, the number of houses on the market is lower than last year, which is a good indication of added stability. It also shows that demand may increase, which will eventually translate into increased average sale price.
Nationally, the housing market is still watchful of the impact of the recent foreclosure settlement deal that was passed last week. Many feel that will lead to another spike in foreclosures and further slow many markets’ march to the bottom. Naturally, many are skeptic of the program’s benefits.
The January 2012 Triangle Market Report has not been published on the MLS site yet, but should be available here soon.