Local news reported throughout the spring that home sales continued to climb over the same period in 2012, leading the sellers of homes that stubbornly remained on the market to wonder why they were being left out of the frenzy. The fact is, not only is real estate local as they say, but it is also localized within a community. Every neighborhood is different and has been affected by the current market climate differently.
News reporting of Triangle Home Sales draws from statistics through the Triangle MLS and combines Chapel Hill, Carrboro, Durham, Raleigh, Cary, and Johnston County. The average sales price for the entire reporting area is around $245,000. By comparison, the average sales price in Chapel Hill and Carrboro is around $382,000, with an increase in sales from 682 in the first half of 2012 to 839 in the first half of this year. Still, the variation in home sales did not seem to be affected by sales price as one might expect, with a higher increase in the lower price ranges.
So let’s break down a few neighborhoods in the Chapel Hill and Carrboro area to see how they fared during the first half of 2013 as opposed to 2012, and also compared to 2006 when the market was strong.
Southern Village: In the first half of 2006, 42 homes sold in Southern Village, a popular Chapel Hill community. In 2012 there were 30 sales in that community during the same period. In the first half of 2013 that number went down slightly to 28 sales. Southern Village is a neighborhood where home prices had accelerated rapidly during the market boom and the average price is around $425,000.
Carrboro: In downtown Carrboro the increase was more pronounced, with 134 homes sold during the first half of 2013, as opposed to 102 homes sold in 2012. The average home price in Carrboro is around $310,000.
Meadowmont: Like Southern Village, Meadowmont has been one of the most successful neighborhoods in the Chapel Hill area. Fifteen homes sold in Meadowmont in the first half of 2012 compared to 41 homes in 2006 at the height of the housing boom. Home sales in 2013 jumped 25% in Meadowmont over 2012, with 20 homes being sold. So this is a big jump, but we are still way behind where we were at the peak of the market. The average price in Meadowmont is around $718,000.
Colony Woods is a popular Chapel Hill neighborhood . In 2013 there were 12 sales, down from 16 sales in 2012 with an average price of about $226,000. But in 2006 there were only 13 Colony Woods sales in the first half of the year, making this an outlier in our comparison.
If sales price were a factor in the number of home sales we would expect Durham to have a stronger showing. Home sales went up in southern Durham by about 18% in 2013 over 2012 which is significant, but nowhere near the 30-35% touted by news reports.
Chatham County is a large county with many different areas, each one with its own personality. The more rural areas tend to sell more slowly and the areas closest to employment centers more quickly. Overall Chatham County sales were up 29% in 2013 over 2012, but this will vary depending on location.
For example, in Pittsboro, 27 homes sold in the first half of 2012 compared with 51 homes in 2013, nearly twice the sales in one year. This increase is primarily due to a resurgence of building in Powell Place, a new community at the crossroads of Highway 64 and 15-501 which had virtually ceased building during the economic downturn.
In Governors Club, a gated golf course community, there were 29 sales in the first half of 2013 with an average sales price of around $618,000 as opposed to 16 sales in 2012, another significant increase.
In Fearrington Village, a unique community in northern Chatham with a diverse array of housing options, 24 homes sold in the first half of 2012 as opposed to 30 homes in 2013, a significant increase this year over last. In Fearrington we are almost back up to the 32 homes that sold in 2006 at the peak of the market.
So as you can see, real estate is truly local. If you would like to know how your own home has been affected, get in touch and we’ll give you a no-obligation, no-nonsense assessment.