Our Local Market
There are several numbers that indicate the current condition of the real estate market. The one I consider to be of great importance, and my favorite to monitor, is months of housing inventory.
Inventory is calculated as follows:
Months of Inventory = # of Active Listings / # of Closings (That month, or an average of several months)
The number of months of inventory indicates the following and gives a picture of current supply and demand:
0-3 Months indicates a seller’s market.
4-6 Months indicates a stable market (usually does not last, gets passed through on the way to either a buyer’s or seller’s market).
Over 6 Months indicates a buyer’s market.
What does this mean to you? Here in New Hanover County (Where Wilmington and Wrightsville Beach are located), we are still in a historically strong seller’s market, with 1.5 months of inventory for July 2022. That said, you may be feeling a shift in the market, as is indicated by the upward sloping bar graph. Things feel like they may be changing, and at the same time, we are still experiencing very strong demand and limited supply, yielding multiple offer situations. It feels conflicted at times, and that can be understood when looking at the numbers, the trend, and also the national market.
The national housing market shows a similar trend, with different numbers. While the national market had almost 3.3 months of inventory in July, creeping towards a stable market, we had almost 2 months less at 1.5 months of inventory for July. If you are listening to the national news regarding the housing market, these numbers may help you understand why it may conflict with what you’re seeing and feeling locally.
What does this mean for you? The national news may be influencing your feelings about real estate right now. I am encouraging you to take it into consideration, and also do your own research regarding the market and neighborhood that you are buying and selling in. These numbers can be different even within the same county, with one neighborhood or price range being in a seller’s market while another is in a buyer’s market. If you live in Raleigh or Charlotte and are buying in Wrightsville Beach, for example, our market here may be different than the one you live in, which may or may not be following the national trends.
Knowing this information, not getting swept up in sentiment and emotion, is critical to you making the most strategic decisions for your personal situation, and moving closer to achieving your real estate goals.
What is to come for New Hanover County? I look forward to reviewing August numbers and sharing them with you in the next few weeks. My hunch is that the upward trend in inventory will continue and level out eventually, perhaps less dramatically than the national trends. Only time will tell, and I will analyze the numbers and let you know when I do!
Hi, I'm Kim Crouch, and I help people who want to live in Wilmington near Wrightsville Beach, and aren't quite ready to move yet, figure out how to buy their NC coastal home now.
1001 Millitary Cutoff Rd Suite 101
Wilmington, NC 28403
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