Real Estate Market Condition in Wilmington, NC

Homes Sold in Wilmington, NC for June 2008

The number of sold homes in June is down 12.8% from last month. Our monthly average sold price is down 4.8% from last month and down 4.8% from June 2007 and down 2.8% from June 2006. The last couple of years we have seen a steady monthly average sales price, look at the chart and you can see our brief decline for 2008 in the average sales price. Note that June has a very tight level of average sold price over the last 3 years.

Market Absorption rate – The number of homes sold in June, 430 divided by the current listing inventory, 5,996 gives us a 13.9 month supply of single family homes, a increase of 1.7 months from last month.

List to Sold price ratio – the average list price of the sold properties is $285,427 and the average sold price is $269,111 for June which gives us a 94.2% list to sold price ratio. Our list to sold price ratio has moved down from last month by .9%

Seller Concessions – 24.7% of sold properties in June reported a sales concession, a increase of almost 2.6% from last month. The average concession for the month was about $3,496.00

Days on Market – The average days on market for the sold properties took 10 days longer to sell over last month. We averaged 122 days for the month of June. Over 17.2% of the properties were placed under contract in less than 15 days for the month of June. This is a decrease of 3% from last month.

Wilmington NC Real Estate Average Sales Price

When we look at a rolling 12 months our current average sales price remains behind year over year comparisons. Our current year over year (07/01/07 – 06/30/08) average sold price of $268,304 is .001% behind $268,565 of this time last year. Our number of sold unit’s year over year is 5,428 units compared to 7,223 last year this time, a decrease of 24.9%. Our monthly sold units continue to lag behind the last couple of years. Our 12 month rolling average continues to show us that we are in line with last year.

Year over year our year to date numbers have dipped a little..

2003 year end average sale price $ 186,137

2004 year end average sale price $ 210,048

2005 year end average sale price $ 254,080

2006 year end average sale price $ 264,520

2007 year end average sale price $ 273,701

2008 year to date average sale price $ 269,112

Median Sold Price – Our Median sold price is $ 212,850 for June 08’. This is a 3.8% increase over last month. I hope this is a trend that we have hit bottom, but we need several more months to determine that.

Carolina & Kure Beach, NC Real Estate

There are currently 698 single family homes for sale and this represents a 16 unit decrease over June and 11.6% of our total WRAR inventory. The average list price is $534,822 a decrease of $7,920 over June 08’. In June there were 30 homes sold, divide that by the homes available and you have a 23.26 month supply of homes in Carolina and Kure Beach – this is the second month that we have seen the supply of homes stay the same. The average sold price for the month of June was $415,720 a increase over June 07’ which was $370,544.When I look at the first 6 months of 2008 and the first 6 months of 2007 our average sales price is down 5.7%. In 2008 we have had only one more sale that the first six months of 2007. From June 2006 to May 2007 there were 292 sales for an average sales price of $419,559.

With the year half over it is hard to suggest where we are going, after a review of our numbers we know that we are down in sold units and managing to maintain our average sales price. Our year over year is down by only $261 or .001%. I could not agree any stronger that now is the best time to buy. It is a real Buyers Market. We have a few plus factors – Our listing inventory has about peaked out as anticipated and the average list price has remained stable. Our absorption rate has 13.9 months of housing supply. The amount of sellers paying concessions is 24.7%, we want this number going down and it went up just a little. Then I look at the factors that are slowing us down. Our average days on the market are 122 days which is typical for a buyers market it went up by 10 days over last month. The list to sold ratio is 94.3% we want this number to be going up, and it went down .09% from last month. Our sold units over last year same month is down by 24.9%. One area I continue to look at is the Pending Inventory, and based on the current numbers I think we will see July’s sold numbers lower than June’s sold units. Our pending inventory numbers has gone from the 1,000 range into the low 900’s.

The Federal Reserve is scheduled to meet on August 5^th. For the moment they have agreed to leave the short term interest rates alone, but if inflation continues to grow we will see the Fed tighten and possibly raise the short term rate. The financial market has a lot of issues it is dealing with. Interest rates have remained in the 6.25% range with points.

This data was pulled on July 11, 2008. Based on information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through June 30, 2008.

I offer these key statistics to keep you informed as to how our market is moving. With 16 years of real estate sales and management in my background I am able to evaluate the current conditions and provide you with accurate data. With key information from your clients I can evaluate their needs and offer them the best plan for their current mortgage. Call me today for a quote.

The Market

Mortgage rates reverse trend and fall off this week

News of Moderate Inflationary Pressure Helps Ease Rates

Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent with an average 0.6 point for the week ending July 3, 2008, down from last week when it averaged 6.45 percent. Last year at this time, the 30-year FRM averaged 6.63 percent.

"Mortgage rates reversed their three-week rise, falling this week after the release of the latest Federal Reserve’s (Fed) policy statement that it expects inflation to moderate later this year and the reporting of May’s timid increase in core personal consumption prices," said Frank Nothaft, Freddie Mac vice president and chief economist. "According to recent trading activity in federal funds futures, market participants lowered somewhat their expectations of future rate hike hikes by the Fed compared to last week.

"Housing affordability fell in April due to gains in median house prices during the month, according to the National Association of Realtors. However, even with the recent erosion in affordability, homes were still more affordable in April than during the 2005-2007 period of skyrocketing house prices."

Freddie Mac

Despite what you read in the papers… There are stills loans to be had. If you’ve been feeling concern, let me put your fears to rest. Cunningham & Company Mortgage Bankers is still meeting the needs of homeowners despite the recent turbulence of the market. We fully intend to make it through these times and emerge with even better products and services. So when you have clients trying to figure out what kind of mortgage they need, rest assured that there are still many loan options available and I’m still here to help. Please don’t hesitate to call me at 352-8273 cell phone.

I do research to provide these statistics. When working with clients I do the same kind of research. I review the client’s needs and help determine what is the best loan. I help evaluate if it is good to pay points or how a 5 year ARM compares to a 30 year fixed. Would they be better off with a stated loan or a fully documented loan? Let me know how I can provide this level of service to your clients.

Cunningham & Company is a full service Mortgage Banker - we handle everything in house. We do first time buyers, FHA and VA loans, Conventional and Jumbo Loans, 100% financing and we have a large selection of adjustable rate loans as well as several interest only programs and ask me about no PMI programs. Call me today with my background in real estate and the resources of Cunningham & Company working together... you can't miss.

Your Lender,

David Flory

Cunningham & Company

910-352-8273 cell

910-313-0045 office

davidf@cunninghammortgage.com