How Are Homes Selling In Johnston County?
Let’s take a look at the figures for September 2016 and see what’s going on. Looking at home sales in Johnston County in September 2016 compared to 2015 and there are some striking numbers revealed. Lots of double digit numbers going in the right direction.Here are some of the highlights from the Triangle MLS Local Market Update…
- Closed Sales up 26%
- Median Sales Price up 12.4%
- New Listings Up 8%
Not all the numbers in real estate need to go up and there are a few that need to go down. In fact all the numbers that you would want to be going up are doing that and the numbers that you would want to be going down are going down. Here are some of those numbers…
- Days On Market Down 30%
- Inventory Of Homes For Sale Down 21%
- Months Supply Of Inventory Down 29.5%
A word of caution before everyone goes out and lists their home in Johnston County for a gazillion dollars more than it’s worth. Taking one month’s numbers of real estate data is not enough to get a true picture of the market although it is a fairly good indicator. To get a true picture you have to go back a few months and also remember the data is history and we use it to predict the future, and we all know how that goes.
What Is The Trend For Home Sales In Johnston County
What you want to see is a trend so let’s look at the previous couple of months of home sales in Johnston County…
- August Closed Sales Up 21%
- July Closed Sales Up 9.5%
- June Closed Sales Up 1.9%
This trend is certainly showing an increase over the last four months of increased home sales in Johnston County and the overall Year to Date increase shows closed sales are up 16% over 2015. The fly in the ointment here is that the numbers that were dropping above could restrict the sales numbers going forward. The inventory of homes for sale and the months supply of inventory are both down which means there are less homes for buyers and when there are no homes for buyers to see they can lose interest and postpone their home search. Coupled with the fact that it takes about six months to build a house (sometimes less) and there are only three months supply of inventory that means buyers will have to wait to move into their homes.
All Real Estate Is Local, Really Local
The most important fact to remember in all of this is that all real estate is local and by local we mean down to the subdivision. The price of the homes also matters a great deal. What that means is that the overall sales figures for Johnston County while on the rise is not a blanket explanation for every house and neighborhood. For example the average sale price in Johnston County in September was $207,792 which is up almost 10% from 2015’s average of $189,537. However the average sale price in June was higher at $210,404 so the numbers are fluid and will change in either direction. Depending on the factors mentioned here such as lack of inventory, supply and demand and in a small way the time of year can affect pricing.
New Construction Subdivisions
There are certain new construction neighborhoods that are very popular and record consistent sales each month and they often have a formula that works, targeting buyers who are looking for a certain type of home and offering upgrades, incentives, closing costs etc. School districts play a huge role in whether homes in a certain subdivision will sell quickly or not. It is often non-negotiable for families with school age children who wish to either stay with their friends or go to a certain school.
Not All Homes Are Moving In This Market
Homes priced from $200,000-$250,000 in Johnston County are one of the best selling price ranges at this time along with certain homes under $200,000. The higher up in price you go the less demand and so less sales. There seems to be a slowing down of home sales for homes priced over $400,000 of which there are currently 73 homes for sale with 10 sales in September which would be a 7 month supply. The days on market for these homes is 143 which is up from 82 for the homes sold in September.
Older homes that are in good condition with 3-4 bedrooms, a two car garage on a large lot priced under $225,000 are a hot commodity these days in most parts of the county. These homes often have an offer within a few days of going on the market so buyers have to move fast when they see a home they like. What home sellers need to be aware of though is that most buyers are looking for a move in ready home, they don’t want a money pit or a house they’ll have to spend thousands on to fix up.