Triangle home sales gain ground

The Triangle housing market continued to show signs of improvement in the third quarter, with sales up 17 percent over the same period a year ago.

The jump was a welcome change after the dismal sales numbers from the first half of the year.

Some of the increase, however, can be attributed to comparisons with the aftermath of the federal homebuyer tax credits. Those credits expired at the end of June last year, causing sales to drop off immediately afterward.

"As we go forward, we're still expecting to see better comparable numbers," said Stacey Anfindsen, a Cary appraiser who analyzes Triangle Multiple Listing Services data for area real estate agents. "But are we out of the woods? I don't think anybody's saying that. I do think the market is starting to get back to its normal seasonal patterns."

During the third quarter, 4,471 homes were sold in Durham, Johnston, Orange and Wake counties, Triangle MLS data show. Pending sales for the quarter were up 27 percent, and showings increased 7 percent.

The improving numbers reflect a growing awareness among sellers of current market conditions, said John Wood, a Re/Max United agent in Cary.

"The buyers' market is still there," he said.

"What we are seeing, though, is that sellers are being more realistic with their pricing and the conditions and staging of their home. I think sellers truly have a better understanding of the market and what they have to do to sell their home."

Sellers offered financial concessions, such as paying a buyer's closing costs, on more than half the transactions that took place in the quarter. That was up from 49 percent during the same period last year.

The average price of the homes that sold during the quarter was $235,700, down 2 percent.

The inventory of homes on the market also continues to decline, something that needs to happen if prices are to stabilize. At the current pace of sales, the Triangle now has a seven-month supply of homes on the market, down from an 11-month supply a year ago.

Particularly striking is the number of new homes now on the market, which is down to just 2,001. That's less than half the number on the market three years ago.

Wood said that number is likely to remain low for the foreseeable future. Most of the new residential projects in the Triangle are being developed by national homebuilders who have largely given up on building speculative homes that aren't already under contract.

That's a reversal from the boom years, when builders raced to scoop up lots and build on them.

"They'll build some speculative inventory in order to show people what they're doing," Wood said of builders now. "I don't think we're going to have speculative inventory on a regular basis for a long time."