Market Insight with Lenda 

 January is traditionally a month when quite a few new listings come onto the market. With the Holidays behind them, clients are beginning to list their homes in anticipation of the usual active spring market.  This year so far has been a little different. 

 Listing Activity in Cary, Apex, and Morrisville

The Triangle MLS monthly indicators report shows that new listing activity in January 2011 decreased 15% in Cary, Apex, and Morrisville compared to 2010.  Most homeowners in our area now realize that the market is very different this year and that it’s not coming back to pre-2008 levels very quickly.

 The market reality reflects what homes are actually selling for in the last 3 months.  Most homes in the Cary market are selling for less than their tax value and close to their 2004/2005 market value. There is a large inventory of both expired listings and withdrawn listings and there have been more short sales and foreclosures in the last 6 months.

  ”New Home Mentality”

Many of our Cary, Apex, and Morrisville buyers are looking at resale homes but comparing them with   a “new home mentality”.  With plenty of new homes to choose from offering all types of special financing, upgrades, and buyer incentives, resale homeowners find it difficult to compete in the same price range. 

 As a seller you should prepare and price your home to compete so that a buyer will choose your home instead of a new home.  The most important element in selling your home today is to choose an agent that is experienced and knows “this market” exceptionally well.

Good News about the Market

 Now some good news about the current market – for the first time in two and a half years, we are seeing an increase in homes under contract in the 500 – 800k price range.  In the last three weeks LG Real Estate has sold four homes in this price range. Why? The condition, location, and price have been appealing and the buyers looking in this price range are getting tired of waiting.

 Are you getting tired of waiting to sell your home or buy a different home?  Call us today at 919-653-2647 and we will provide you with the latest market information on your existing home or prospective new home.

 The town of Cary has done it again.  For the fourth time in the last 8 years, Cary has landed in Money Magazine’s top places to live list.  Cary is ranked #23 out of 100 and is the only North Carolina community to make the top 25 list.

Noteworthy Cary Stats

Money magazine notes Cary’s very low crime rate, AAA bond rating from Moody’s, and an unemployment rate well below the National average. Other factors affecting the ranking include medium income, math and reading test score results, job growth, housing prices, and seasonal temperatures…. view full article.

For more information on Cary and homes in the area, please visit our website at CaryHomesNC.com.

 Why the sudden surge in the 500-800k price range?

 First and foremost the number of showings has increased.  Showings in general declined in May due to the expiration of the home buyer tax credit at the end of April.  Yet showings in the Cary Area 500- 800k price range increased by 34% (compared to May09). 

 Another reason for the surge is a change in the new home market.  New homes in the Cary area have been outselling resales by a large margin over the last 18 months.  Now with limited bank funding for new homes and a large decline in inventory, resale homes in this price range are finally gaining some momentum. 

What’s happening with Offers?

Now for the offers – they are typically coming in at 10-15% below the current listing price   Sellers should be thrilled to get any kind of offer and we at LG Real Estate negotiate very diligently to bridge the gap.  The key here is for sellers to price their home realistically and be willing to work hard with any offer that is submitted.  Buyers still control the market as they have a large resale inventory to choose from.

Please call us for the latest information on Cary area homes and the current trends in the market.

Monthly pending home sales in the Triangle increased by 33% in March and 32% in April as compared to March and April of 2009.  The popular home buyer credit expired on April 30th  and since that time both showings and homes going under contract have declined.  This does not appear to be a significant trend as there was a floury of activity in March and April with buyers racing to purchase a home before the credit expired. 

Active Market Segment

The Cary market remains very active in the 250 – 400 price range.  The prospective buyers moving into the area are more often than not falling into this price range and not the higher ranges. 

Trend for Home Buyers

The trend that we are noticing is that buyers are re-defining their needs, especially in the higher price ranges.  Families who are move up candidates do not want the larger financial exposure in this new economy.  They are choosing instead to stay in their present home and upgrade and expand where possible.  Consequently, the Cary move up market in the 500 – 800 price range is very limited.

Remainder of 2010 forecast

The remainder of 2010 looks like an excellent time to buy a home in the Cary and Triangle area.   There are abundant homes listed for sale in all price ranges, interest rates remain very favorable, and home sellers are becoming more motivated as days on the market continue to increase.  Give us a call at LG Real Estate and we’ll be happy to show you around town.

For 11 years in a row, The Town of Cary has achieved this ranking and is among the safest cities in the nation to live. For more information and to review the full article, please visit The Town of Cary Website.