It’s time for our monthly market update. Keep reading to learn what is actually happening in the Wilmington, NC market and surrounding areas. Although this data represents New Hanover County, I looked at the numbers for Brunswick, Pender, and Onslow as well. Those markets are experiencing similar trends.
You may remember last month I told you that inventory had not changed much in October. In November, it changed! Inventory climbed from 2.4 months to 3.2 months. That is really close to a stable market, and the first time we have seen that many months of inventory in New Hanover County since May 2020! Remember what months of inventory means – it’s the amount of housing inventory on the market to support closings (based on the past six months of closing data) for that many months, in this case 3.2. 4-6 months of inventory represents a stable market. So we are still in a sellers’ market, but getting close to that point of stability.
We are seeing the effects of that as average cumulative days on market crept up to 36 days (median days is still very low at 15). Sold listings dropped to 285, also a near low, and sales volume sold dropped to $143.7 million for November. It’s important to remember that this time of year is always slower, through January, so some drop is to be expected. However, looking year over year at New Hanover County, total volume sold dropped from $189.3 million for November 2022, a 24% year over year decline.
What I am seeing in the market: Homes that are in highly desirable locations and priced appropriately (that means in line with previous comparable sales or a little less) are still selling quickly, sometimes with multiple offers. That said, there is more opportunity for buyers as inventory increases and homes that are not priced for the current market sit longer than sellers would like, and eventually are price reduced. Homes that are pricing 3%-5% (or more) over the last comparable sale, are likely facing longer days on the market and price reductions in the near future. As a seller, your pricing strategy in today’s market is critical.
What we don’t know is where the market is going, because we are at the time of year that is always slower. Is it evening out and stabilizing, or will we experience a more rapid decline? The answer to that question will come in Spring of 2024. My feeling is that we are seeing some stabilization and not a sharp decline, as interest rates hover around 7% and are projected to decline slightly throughout 2024 to about 6.5%. If you’re in a position to buy, now may be a great time to take advantage of this combined cyclical and seasonal lull, before we move into the Spring selling season, that starts around the end of January.
Questions? Please reach out to me at kim@thecoastalrealestategroup.com. I’m actively helping both sellers and buyers win in this market.
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