I’ve been trying to come up with a good word to describe the Triangle Region housing market. I keep coming back to “booming.” And while I obviously don’t want to over-hype what is occurring, I think you would agree when looking at the stats that we are booming, especially this fall.
The fall has historically been a second market where activity is far below the fast pace of the spring buying season. But September and October have seen dramatic increases in sales over the previous year. September saw a jump of 12.5% followed by 10.3% in October compared to last September and October, respectively.
Combined this fall, the Triangle Region had a record 6,709 homes sold compared to 6,027 in 2018 and 6,307 in 2017.
The double-digit percentage increases are huge compared to the spring - March was up 1.4% over last year, while April (2.5%), May (5.7%) and June (8.6%).
We are trending towards the strongest year on record more than doubling the sales of 2011, the last year prior to the Recession recovery. Here is a look at the past decade of Triangle home sales through October
Along with the rise in sales, we are also seeing sustained increases in home prices. The October median price – the middle of the 3,650 homes sold in October – was $280,000. This was only the fifth time ever that the $280,000 mark was reached, all in 2019.
October saw a rise of 7.7% over last October in median prices as we jumped from $260,000. This was the highest increase of any month this past year.
The other very, very good sign was that 4,111 homes came on the market in October, up 11.1% from a year ago. We need more listings because our total inventory remains historically low with just 8,616 homes for sale. This equates to a supply of just 2.5 months, down 10.7% from a year ago. Essentially, we remain in a major supply vs. demand imbalance which is driving home prices higher.
The homes that sold in October stayed on the market for 32 days, the same as last year, but up from the June 2019 low of 25 days. Interestingly, during the recession we saw October results of 110 days in 2010, 126 in 2011 and 117 in 2012.
The Triangle Region is following a very similar pattern to the U.S. according to the recently released Existing Home Sales Report from the National Association of Realtors. U.S. sales in October were up 4.6% compared to last year, while the median price jumped 6.2% to $270,900.
Just as is occurring in the Triangle Region, the price rise is being impacted by a scarcity of listings. Nationally, there is just a 3.9-month supply of homes – 1.77 million in total – which is down 4.3% from a year ago.
Additionally, 46% of those homes which sold in October came off the market in 30 days or less.
Interestingly, the South fared the best of all U.S. regions with sales up 7.8% in October while prices were up 6.0% to a median price of $234,900.
You will see from the below chart how we compared to the overall U.S.
I love writing this update to give buyers and sellers a sense of what is occurring in our real estate market. Our agents can give you even more information and drill down with data that is most important to you.
I encourage anyone who has questions to reach out to me at email@example.com or any of our 350 Triangle Coldwell Banker Advantage agents and we can help.
I hope you are enjoying these articles.