What's Happening in Your Local Market?
Whether you are planning to sell or buy a property, understanding your local real estate market is empowering.
December 2019
(Combined 3-County Stats)
This month the Federal Reserve voted to leave its key benchmark rate unchanged, which was widely expected. While the rate decisions by the Federal Reserve do not directly affect mortgage rates, Federal Reserve policy does affect the economic markets overall. Mortgage rates ended the year close to three-quarters of a percent lower than in 2018, a welcomed improvement for buyers as well as homeowners who took the opportunity to refinance.
In 2019 home prices were up again in most markets. Buyer demand continues to be strong but with tepid seller activity still in many locations, total sales are lower than they would normally be in a more balanced market. While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices.
New Listings increased 16.9 percent for Single Family homes and 28.3 percent for Townhouse/Condo homes. Pending Sales increased 50.1 percent for Single Family homes and 68.2 percent for Townhouse/Condo homes. Inventory decreased 3.5 percent for Single Family homes but increased 0.4 percent for Townhouse/Condo homes.
Median Sales Price increased 15.8 percent to $295,249 for Single Family homes and 8.2 percent to $201,600 for Townhouse/Condo homes. Days on Market decreased 6.3 percent for Single Family homes and 30.9 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 15.0 percent for Single Family homes and 6.7 percent for Townhouse/Condo homes.
With low mortgage rates, low unemployment, and continued wage growth, home buyer activity is expected to remain healthy into the new year. New construction has been on the rise in 2019 and is expected to continue into 2020, but many experts note that the country is still not building enough new units to quench demand. It remains to be seen whether existing homeowners will be enticed to sell by higher home prices, which could finally bring the overall housing market into greater balance.
Above info is combined New Hanover, Brunswick and Pender Counties, provided by Cape Fear REALTORS®
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