Kernersville Market Report – 1st QTR 2020

At the end of the 1st QTR 2020, there are 200 Single-Family homes and 28 Townhomes pending in Kernersville, NC.  At the end of March, there are 128 Single-Family Homes and 38 Townhomes still available for sale.

A total of 185 Single-Family properties closed during the 1st QTR in 2020.  This is up 1.1% from 2019 when there were 183 closings.

A total of 31 Townhomes closed during the 1st QTR in 2020.  This is an increase of 63.2% from 2019 when there were 19 closings.

Of the Single-Family Homes closed, 64% were under contract the first 30 days on the market and 82% were under contract within 90 days.  The most active price point is in the $200,000 to $300,000 range which made up 40% of the closed properties in the 1st QTR 2020.

Analysis of the absorption rate indicates an inventory of 1.6 months for Single-Family homes and 3.9 months inventory for Townhomes in the Kernersville Real Estate Market.

Governor Roy Cooper issued Executive Order 121 on March 27, 2020 implementing stay-at-home orders for North Carolina.  Real Estate is considered an essential business in the order and allowed real estate activities to continue.  However, because of the potential health risk to buyers, sellers, and agents, new policies have been instituted by real estate brokerages and agents to protect the public during this time.  Agents are scheduling buyers for virtual showings of listed properties.  Open Houses are also going virtual.

Spring is a busy time in real estate when many sellers decide to list their property.  Below is a table displaying how many sellers listed their property in March 2020 compared to the same time period in prior years.  The number of new listings in March 2020 is 90 homes.  In 2019, there were 78 new listings and in 2018 there were 79 new listings.  At least through March 2020, the number of new listings seems to have increased slightly from prior years.  However, there is no way to tell how many sellers might have listed their property but decided to wait.

Closings continued in March 2020, and there were 73 closings of Single-Family Homes.  Compared to prior years, 75 homes closed in March 2019, and 50 homes closed in 2018.

In North Carolina, once a home is under contract, it usually takes around six weeks for the property to close.  So most of the transactions that closed in March 2020 were already under contract in late January and into February.

Note:  To keep up-to-date on the impact of COVID-19 in the Kernersville Real Estate Market, I will be publishing monthly reports.

1st QTR 2020 New Listings

1st QTR 2020 Closed Sales

The economic principle of supply and demand has been at play in housing markets across the country. This shortage of available homes and high buyer demand drives home prices higher. Until the supply of inventory comes back to more normal levels, we will be in a Seller’s Market.

Below are 2 interactive charts showing the Inventory of Homes and Average Sales Price for Single-Family Homes in Kernersville, North Carolina. You can scroll over the charts to see monthly data points. As you can see, the supply of homes has been shrinking drastically, especially in the last five years because of high buyer demand.

Drummond Estates is located off Hwy 150 in Forsyth County in Kernersville, NC.  Building began in 2018 and continues.  Homes feature 1, 1 1/2, and 2 stories with 3 or 4 bedrooms with 2 or 3 garage spaces.

Living space ranges from 2,000 sq. ft. up to 2, 900 sq. ft.   Most of the lots are between .50 acre to .75 acre.  There is a homeowner’s association.

• COVID-19 has certainly made the buying and selling of properties more complicated.
• If you are a homeowner considering selling your property, now might be a good time to list.  There is already a shortage of inventory and less competition in all price brackets.  Your home will stand out more with buyers.
• If you are in thinking about purchasing a home, mortgage rates are low.  The low interest rate will help in the amount you qualify for and how much you will pay in interest.  As long as your finances are in order and your job is secure, it might be a good time to buy.