Real Estate Continues Positive Trends
Raleigh, NC: The Triangle Multiple Listing Service (TMLS) reports the following information pertaining to the housing industry in the greater Triangle region during April of 2012. The data shown reflects information on properties located in the 16 counties of the greater Triangle Region. The percentage changes are comparisons with the prior year’s month unless otherwise noted.
TMLS President, Ray Larcher said, “Closed sales continued a ten-month positive trend through April. Sales in April were up 4.6 percent over April of 2011 and the ten months prior (July 2011 through April 2012) showed an 11.5 percent increase over the same time period last year. The three leading counties with closed sales for April were Chatham County with sales up 18.2 percent (52 units sold), Durham County with sales up 13.5 percent (278 units sold) over last April and Wake County sales were up 11.5 percent (1069 units sold) for the same time period. Several local municipalities/areas with the largest increases over last April were Durham South up 30.5 percent; Durham East up 22.6 percent; and Cary/Apex/Morrisville up 21.0 percent. In addition, the pending sales (homes under contract, but not yet closed) also exceeded last April by 20.4 percent, another positive trend that continued for the past twelve months.”
Inventory levels of homes for sale shrank 27.3 percent in April to 14,111 units from 2011 and new listings in the Triangle region increased 1.3 percent. For the second month housing prices enjoyed a boost and increased in April with Median Sales Price up 3.9 percent to $190,000 and Average Sales Prices up 1.7percent to $223,658 over last April. The Days on Market were down 2.1 percent to 125 days over last April which showed the first decrease in the past 12 months. Absorption rates improved as the Month’s supply of Inventory was down 29.0 percent to 8.3 months.
The Housing Affordability Index was 6.6 percent higher than last April at 193. . This index measures housing affordability for the region. An index of 120 means the median household income was 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.
“When measuring residential real estate activity we have to compare it to the overall economy and job growth. The first quarter GDP was up 2.2 percent, which is not great and slower than the fourth quarter of 2011, but expanding. Expedited bank processing and easing lending standards are also encouraging development,” Larcher concluded.