Where are we in the current real estate business cycle? Everyone knows that the real estate market has been in a downward trend for the last several years, but have we reached the bottom yet? When will we know? The answer is that even the experts only know after the fact by looking back at the numbers of closed home sales.
What we do know is that we are still in a strong buyers market. What does this mean? A buyer’s market occurs when there is over 7 months of real estate listing inventory available. A balance market or transitional market occurs when there is 5-7 months of listing inventory available. Finally, a seller’s market occurs when there is less than 5 months of listing inventory available.
So, how many months of inventory are there in the Raleigh real estate market currently and what classification of real estate market are we in?
As of today in the Triangle Multiple Listing Service (TMLS) there are 7,733 homes listed for sale in Wake County that are currently in the active status. These are homes of all types including single family detached, town homes, and condos; new homes and re-sales – everything in the TMLS. Sales numbers are typically down at this time of year so, we will examine how many home sales there were in the last six months and then divide by 6 to give us the average sales per month rate. 5,011 homes of every category sold in Wake County since June 22. Therefore, 5,011 homes / 6 months = 835 homes per month. If we take the number of homes on the market and divide by this sales rate, (7,733 homes / 835 homes per month) we get 9.26 months of inventory. Thus, Wake County is still a strong buyer’s market.
It is important to understand local market conditions when making the decision to sell. In a strong seller’s market, just about every home sells. In a strong buyer’s market, only the homes in the best condition that are priced right sell.
So, if you do not have to sell your home, you might want to consider not putting it on the market at this time.
But as a Raleigh area homeowner, you may need to sell despite the market. Perhaps you are being relocated and you need to sell to be able to purchase at your new location. Or maybe you are interested in selling so you can purchase a larger or more conveniently located home. Whatever your home selling needs, why not contact the Marti Hampton team to give you expert professional advice? We’re always happy to help!