The Triangle housing market’s run of strong sales months has extended into the summer, with sales up 30 percent in the second quarter.
The inventory of homes on the market also continues to contract. There were 7,691 homes listed for sale in Durham, Johnston, Orange and Wake counties at the end of June, down 19 percent from the same period a year ago, Triangle Multiple Listing Services data show.
The Triangle now has just a three-month supply of homes on the market at the current pace of sales. Nearly 40 percent of the market’s price points are considered to have an undersupply of housing – meaning they have three months or less of supply, according to Triangle MLS. Just 22 percent of price points have an oversupply of housing, meaning they have 10 months or more of supply.
The lack of inventory is making it easier for people to sell their homes and helping to boost prices.
The average days on the market of the homes that sold in June was 97 days, down 18 days from the same period last year. The average sales price of the homes that sold was $249,300, up 3 percent.
But so far the modest rise in prices hasn’t been enough to entice large numbers of sellers off the sidelines.
“Our prices have risen a little bit but we all know not a whole lot, so I think some sellers are still sitting on the sidelines watching what happens this year,” said Kelly Cobb, a real estate agent with Fonville Morisey in Cary. “We have buyers who have been shot down three or four times trying to buy a house.”
Through the first half of this year, home sales in the Triangle are 28 percent higher than during the same period last year. And there are signs that sales activity is likely to remain strong throughout the summer and into the fall. Showings were up 19 percent in June over a year ago, while pending sales increased 23 percent.
Although most people have traditionally put their homes on the market at the beginning of the year, many real estate agents are advising sellers not to wait. Cobb said she expects this fall to be particularly active given the market dynamics now at work.
Phyllis Brookshire, a senior vice president with Allen Tate Real Estate, said with interest rates rising and new home construction ramping up, sellers have little reason to wait.
“This is the lowest amount of competition you’re going to have and interest rates are going up,” she said. “We’re not advising sellers to wait.”