Moore County has had yet another record-breaking year in real estate sales and the trend is holding strong.  The number of properties closed and recorded in the multiple listing system rose to 2,642 in 2005 from 2,103 in 2004.  This 26% increase was also reflected in the dollar volume we experienced.  The 2004 figures totaled $351,736,798 verses the 2005 figures totaling $484,934,176. This 37% increase can be attributed to a larger market of buyers, a higher average price and more new construction available.

Prudential Gouger O’Neal & Saunders had the best year in the history of the firm and the best year market-wide.  “With a 31% increase in closed sales we are extremely pleased with our position in the market”, said Kay Beran, president of Prudential Gouger O’Neal & Saunders.  “Our sales associates worked hard to meet and exceed our goals for this year. We look forward to 2006 with the same excitement because we feel that our market will carry forward with equal momentum.”

Other North Carolina communities have experience growth in the real estate market with buying opportunities that include affordability, quality of life and good housing choices.

Read on for more information about the “housing bubble” and how it will affect North Carolina.

       By Tim Kent, CAE, Executive Vice President of NC Association of REALTORS®
                                       
     Have your clients been asking you about the so-called housing bubble?  Here’s your 10-second answer: In a few markets – mostly in the West and Northeast, prices have risen so fast that there may be a slight correction.  But North Carolina home prices are below the national average and there’s room for considerable growth.
     For months now, the Wall Street Journal, Money Magazine and other media voices have been forecasting a significant drop in housing prices.  As we turn the page on 2006, there are signs that the five-year nationwide housing market boom may be slowing down.  The number of days on market has increased in many metro markets.  But make sure that you and your clients understand that the N.C. housing market is a whole lot different than places like California, New York and Massachusetts.
     Nationwide, housing prices increased close to 14 percent during 2005.  That’s not the case, though, in North Carolina where the average sales price increased a relatively tame 8 percent.
     The Office of Housing Enterprise Oversight tracks 265 housing markets and produces a list of home price appreciation from highest to lowest.  Topping the list is Naples-Marco Island, FL with a 12-month appreciation rate of 35.6 percent and 114.69 percent over the last five years.  Other markets near the top include Bakersfield, CA; Merced, CA; Reno/Sparks, NV; and Melbourne/Titusville, FL – all with 12-month appreciation in excess of 30 percent. 
     Contrast those numbers with the bottom 20, which includes four N.C. housing markets.  …Charlotte-Concord, Burlington, Greensboro and Morganton rank among the nation’s lowest in terms of price appreciation.  The bottom line is that home prices in North Carolina are relatively inexpensive with a statewide average of $208,097.  The Outer Banks MLS reports an average sales price of $540,000 but it is the only MLS in the state with an average sales price in excess of $295,000.  To outsiders – including those moving in – N.C. home prices look like a bargain.
     Housing affordability is a big reason why large numbers of people are moving into our state from the Northeast, Florida and California. …North Carolina ranks fifth in the U.S. when it comes to domestic migration, adding a net 108,000 persons over a four-year period – and this growth will likely continue.  The resurgence of technology as a job creator bodes well for the Triangle.  Wilmington and Brunswick County will likely see continued growth as fewer retirees will be able to afford housing in pricey places like south Florida.
     David Lereah, chief economist for the National Association of REALTORS, forecasts a soft landing for the housing boom in 2006 with a slight drop in existing home sales nationwide.  The predicated 6.86 million home sales, however, would still rank as the second best year ever for U.S. housing.  Keep that in mind as we head into the New Year.  As a friend of mine likes to say, “The future’s so bright, I’ve gotta wear shades.”

tar heel Realtor, January 2006

INVESTORS BELIEVE REAL ESTATE IS BETTER THAN STOCKS

     A recent survey by the TIAA-CREF financial services group finds that investors believe real estate in America is overvalued, but is still a better bet than the stock market.  In a head-to-head match-up, 69 percent of investors preferred real estate compared to 24 percent who favored stocks.

AVERAGE PRICE OF HOME INSPECTION IS $318

     The American Society of Home Inspectors (ASHI) has released a new study showing that nationwide the average coast of a home inspection is $318.  75 percent of inspectors base their fees on the size of the property and the average level of experience is 8.1 years.  ASHI said the survey reflects business activity in 2004.

NORTH CAROLINA CITIES AMONG LOWEST IN HOME PRICE APPRECIATION

     The Fall 2005 Real Estate Intelligence report included information on communities with the highest and lowest price appreciation reported by the Office of Housing Enterprise Oversight.  Out of 265 ranked communities across the U.S., four North Communities were among those listed with the lowest home price appreciation.

   
  

FAST FACTS       - from tar heel Realtor, January 2006

EXISTING HOME SALES CONTINUE RECORD-BREAKING PACE

     North Carolina existing home sales posted double-digit growth in October, with two regions (Brunswick County and Haywood County) showing an increase of more than four times the average for the state.  According to statistics compiled by the North Carolina Association of REALTORS, 11,172 residential units were sold in October 2005, an increase of 11 percent over sales posted in October 2004.  Total sales dollars for the month were $2,410,495,526 and the average existing home sales price was up 10 percent to $215,762.
     More than 110,800 units had been sold on a year-to-date basis through October 2005, an increase of 15 percent from year-to-date sales posted during the first ten months of 2004.  The average sales price increased 8 percent over the same time period to $208,869.
     Mountain and coastal regions lead the state in positive growth with Brunswick County (64 percent), Haywood County (47 percent), Goldsboro (41 percent), and Jacksonville (40 percent) posting the strongest year-to-date increase in total sales dollars.