4th QTR Market Watch Report

The Davidson County Median Sale Price increased to $169,000. This is a 5% increase from 2018 when the Median Home Price was $161,000. Looking back five years to 2015, there is a 26.8% increase in the Median Sales Price.  That averages out to a 5.36% increase for the past five years in the Median Sale Price for Davidson County.

The chart below on the left shows the Median Sales Price for Davidson County going back to 2010.  The chart on the right shows the decline in our Inventory Supply for the past ten years.

At the end of the 4^th QTR 2019, 403 homes were pending in the Triad Multiple Listing Service in Davidson County for Single-Family Homes, leaving 446 homes available for sale.  At the same time, 31 Townhomes were pending, leaving 18 available for sale.

A total of 476 Single-Family Homes closed in the 4^th quarter of 2019, with the Average Sold Price of $197,757, which is up 7% percent from the average sold price of $183,008 in the 4^th quarter of 2018.  A total of 43 Townhomes closed in the 4th quarter of 2019, with the Average Sold Price of $211,732, which is up 11.7 percent from the average sold price of $189,588 in the 4th quarter of 2018.

Days on Market in the 4th QTR 2019 is 45 days for Single-Family Homes, down 29.7% from 2018 when the days on market calculation was 64 days.  DOM is 57 days for Townhomes in the 4th quarter 2019.  This is down 8.1 percent from 2018.

Days on Market (DOM) is a measurement in days of how long a home has been listed for sale before the home goes under contract.  This statistic shows home sellers possibly how long it may take to sell a property in the area.  What is considered a normal market length is 60 to 90 days.  Below 60 days is considered a Seller’s Market.  Over 90 days, is considered a Buyer’s Market.

At the end of the 4^th quarter 2019, there is 2.7 months inventory for single-family homes.  Months Inventory is an estimate of how fast listings are currently selling measured in months. The months inventory determines how long it would take to sell off the current inventory of properties if all conditions remained the same.

Davidson County Sellers are receiving 97.1% percent of their List Price in the 4th QTR 2019.  This ratio is a way to express the difference between the two values such as List Price and Sold Price.  We use this ratio to determine the percentage of the final list price that a buyer ultimately paid for the home.  This statistic helps buyers decide how much to offer on a property.

Below the two charts show the Days on Market (DOM) calculation and the number of closed sales by different price ranges.  As you can see, the first-time buyer price range of $150,000 to $199,999 had the most closed sales in 2019 at 416 homes.   In 2019, the DOM calculation for this price range is 12 days.

The second most active price range is the $200,000 – $299,999.  The DOM for homes in this price group is 23 days, with 328 closed homes in 2019.

Davidson County had 2,084 residential closings in 2019, which included Single-Family Homes and Townhomes.  Single-Family Homes accounted for 91.8% and Townhomes accounted for 8.2% of these closed properties.

Yearly calculations show a 2.6 Months Supply of Inventory and DOM at 53 days.  Sellers received 97.3% of their list price.

The Median Sales Price was $169,000 in 2019.  This is a 5% increase from 2018 when the Median Sales Price was $161,000.  Looking back five years, there is a 26.8% increase in the Median Sales Price from 2015 when the Median Sales Price was $133,250.

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1st QTR 2019 Market Watch Report

2nd QTR 2019 Market Watch Report

3rd QTR 2019 Market Watch Report

The Housing Market in 2019 for the Piedmont Triad Region was fuelled by the overall strength of the economy in North Carolina and across the country.  Buyer activity was strong with the good economy and low mortgage rates.   However, experts agree that the market would be even stronger if not plagued by low inventory levels.  The economic factors of supply and demand continue to favor sellers here.

Sales:  Pending sales increased 4.0% and closed sales were up 3.2%.

Listings:  Inventory levels in 2019 were 15.6% lower than 2018 levels.  At the end of 2019, there were 4,376 active listings across the Triad.

Prices:  Home prices were up in 2019 compared to 2018.  The overall median sales price increased 6.7 percent to $176,000.  Single Family Homes prices were up 7.3 percent compared to 2018, and Townhouse/Condo homes prices were up 8.8 percent.

(These figures include statistics for the eleven counties that are members of the Triad Multiple Listing Service.)

In calculating the Sales Price of Homes, two calculations are used. These calculations are the Median Sale Price and the Average Sale Price.

The result of the Average Sale Price is arrived by adding up all the homes sales and dividing that number by the number of sales.

The Median Sale Price means that half the home sales are above and half are below the result. If there are extreme high and low sales figures, the result might not be a true representation of the sale price.

The Median Home Price reached $316,000 in the U.S. in 2019. Overall, home prices in 2019 grew 3.3%, which was down from 2018 when home appreciation grew by 5%. Real estate predictors believe home prices in 2020 will continue to rise but at a slower pace of around 2.8%.

Mortgage rates in 2019 stayed under 4%.  Forecasters expect rates to stay the same or go lower  The low rates will help the affordability factor for some buyers priced out of the market.  Of course, nothing is a guarantee with mortgage rates.  If tariffs and trade wars shift the economy, the Federal Reserve will increase interest rates to banks, which pass down to consumers in higher interest rates on mortgages and other credit.

The low-interest-rate environment will continue to spur market activity. The number of homes sales will increase slightly and reach 6.1 million by the end of 2020. Homes sales nationwide would be higher right now and in 2020 if more homes were available for sale.

With mortgage rates under 4%, it is a good time to buy a home.  An important fact sometimes overlooked is that besides the initial cost of the home, the lower the interest rate the less you will pay in financing costs over the life of the mortgage.  Also, with a low interest rate, your purchasing power will be greater.

First-Time Buyers

1. First-time buyers entering the market in 2020 will need to start early and have patience.
2. You must know your housing budget and already have your financing in place by getting pre-approved.
3. Potential buyers should continue to save money while waiting for the right house.
4. Consider sacrificing some of your wants on your housing list.
5. Expand your search to other locations that might work.
6. Look for a fixer upper in a good neighbourhood and make improvements to the property over time.

It is an excellent time for sellers in an entry level home to move up. Demand is strong in the price bracket under $200,000. There is a little more inventory available to buy in the move-up buyer price ranges. Interest rates are still low so the long-term cost of purchasing a move-up property is excellent.

For the past several years, the millennial generation who waited longer than previous generations to become homeowners entered the market.  Millennials made up 37% of the homebuyers in 2019. This age group is anyone born between 1980 and 1998. As a seller, if your target buyer is a millennial, be aware of these facts:

1. 98% of millennials search for homes online. Sellers need to make a great first impression on the internet with listing pictures and listing descriptions.
2. Square footage is important, but millennials are more concerned with commuting time and proximity to schools.

At the upper price ranges, properties may take a little longer to sell. Sellers should be aware of their competition with a smaller pool of buyers looking in the upper-end market. Upper-end sellers need to have their home stand out and have it priced correctly at the beginning of the listing period.

Sunnyvale is a new subdivision located in the 27295 zip code off Mt. Carmel Church Road.  The builder is D.R. Horton. The current List Prices range from $190,990 to $221,490.

Homes feature 1 or 2 stories with 3 or 4 bedrooms.  Lot size is around 1/2 acre and all homes feature a two car garage.  Living space ranges from around 1,400 sq.ft. up to 2,800 sq. ft.

Schools are Tyro Elementary School, Tyro Middle School and West Davidson High School.  There is a Homeowner’s Association.  The HOA dues are $45 paid monthly.

Supply

Inventory challenges will remain in 2020, especially with the entry-level homes. The real estate market is still years away from obtaining an adequate inventory of homes to meet today’s demand from buyers.

Demand

Demand for housing will continue in 2020 because of the low-interest-rate environment, rising rents, and the expanding millennial population.

Affordability

The move to the affordability trend will continue in 2020. Baby boomers are retiring and seeking sunnier weather, lower property taxes, and a lower cost of living. Millennials are searching for family-friendly lifestyles and affordable housing.

Elections

Consumers and businesses will watch the 2020 elections for indications of potential policy changes. In the Senate, 35 of the 100 seats are up for re-election.  In the House, there are 435 seats up for re-election.