Monday, July 23, 2012

Triangle Housing Market Growth Continues

Raleigh, NC: The Triangle Multiple Listing Service (TMLS) reports the following information pertaining to the housing industry in the greater Triangle Region during June of 2012. The data shown reflects information on properties located in the 16 counties of the greater Triangle Region. The percentage changes are comparisons with the prior year’s month unless otherwise noted.

Ray Larcher, President, Triangle MLS, Inc. said, “Over the first six months of this year residential real estate strengthened and made strides toward recovery without government intervention. Beyond closed sales some key metrics include Days On Market, prices and Months Supply of Inventory. Keeping the affordability picture positive, the Fed has vowed to keep interest rates around 4.0 percent through mid-2013.”

“Closed sales continued a twelve-month positive trend through June. Sales in June were up 19 percent over June of 2011. The three leading counties with closed sales for June were Chatham with sales up 46 percent (92 units), Orange with sales up 33 percent (179 units) and Wake with sales up 21 percent (1,425) units over June of 2011. Several local municipalities/areas with the largest increases over last June were Garner up 88 percent (62 units); Hillsborough up 52 percent (41 units); Inside the Beltline up 36 percent (211 Units); Durham Central up 34 percent (91 units) and Cary/Apex/Morrisville up 27 percent (390 units) over June of 2011. In addition, pending sales (homes under contract, but not yet closed) also exceeded last June by 27 percent, another positive trend indicating that future sales should remain strong through the summer,” Larcher continued.

Inventory levels of homes for sale shrank 27 percent in June to 13,691 units from June 2011 and new listings in the Triangle region increased slightly by only .3 percent. For the fourth month the Median Sales Price increased and was up 3 percent to $198,718 and Average Sales Prices up 3 percent to $239,166. The Days on Market continued a downward trend for the third month in June to 115 days, a 3 percent decrease of the previous June. Absorption rates improved as the Month’s supply of inventory was down 36 percent to 7.7 months.

The Housing Affordability Index at 186 is 4 percent higher than last year, another positive sign for our market. This index measures housing affordability for the region. An index of 120 means the median household income was 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

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