There are 8,246 listings in Wake County and 923 closings took place in the past 30 days. Just based on these numbers, that’s a 9 month supply of homes for sale. Still way too many.
I have always heard that around a 6 month supply is a balanced market. Less trends towards a sellers’ market and more trends towards a buyers’ market.
Here’s a question. What would it take to create a sellers’ market? More buyers absorbing the excess inventory? It’s interesting how the heaviest buyer activity occurs during a sellers’ market, isn’t it? When prices are rising and inventory levels are falling, the fear of loss take over and buying activity increases. And when we have a situation like we do now, prices are at 2003-2004 levels and interest rates are as low as they have ever been, buyers seem to be waiting.
Here are the numbers.
February started out with a good amount of promise compared to the same period in 2010. Especially considering that the tax credit deadline was approaching during this period last year. The gap widened in March and especially April. Just remember when you look at these numbers that the 2010 tax credit pulled a large number of buyers from the second half into the first half of 2010.
What do the months ahead hold for sellers and buyers? Sellers must realize that the competition can be overwhelming. Everything has to be done perfectly… from presentation and marketing… to price.
Buyers? Ask yourself what you’re waiting for. If you don’t need to move, by all means stay put. But if you have a real need to move, the time has never been better. If you’re waiting for prices to fall some more, carefully consider the effect that rising mortgage rates could have on your purchasing power.
