Area brokers say the real estate market’s recovery continues, pointing to recent upticks in average sale prices for homes and lease rates for commercial properties. Here is what several local brokers said about current trends in the marketplace.

RESIDENTIAL REBOUND

“Buyers are currently showing heavy interest in new construction and recently updated resales. One of the primary reasons is that there is a void of lightly worn homes built in the past five or 10 years. As prices improve, more homes built in 2005 and 2006 will come on the market, but building dropped off drastically after 2006.
Granite countertops, appliances and flooring continue to be the more popular upgrades and updates. The key for resales to compete is condition and proper pricing.
Relative to size, the more mature homebuyers have realized that they do not need those large 3,500- to 6,000-square-foot homes and are downsizing the space and the maintenance.
On the other end of the spectrum, many first- and second-time buyers are buying larger homes because they feel they missed a step up during the downturn and because low interest rates allow them to now skip a step up on the housing ladder and get that size now that they eventually wanted.”
-Deryl Smith, Realtor and broker, Century 21 Sweyer & Associates

“It is hard to talk about trends in the Wilmington area because there are so many different aspects to our housing market. We have a healthy single-family market along with plenty of condo/townhouse-type properties.
If you read national trends, you find many changes occurring due to the movement of jobs. Bottom line, jobs are the driving force behind any trend in real estate, anywhere.
Personally, I am seeing young homebuyers willing to do some work to an older house, looking to make it their first home. They are coming back to the older neighborhoods for the larger yards and central locations. New construction is always a draw, and there will always be a market for new homes.
One trend that I see as an emerging market need is the blended family home, accommodations for the ‘sandwich’ generation. Three generations living under one roof is something that many people are trying to figure out. Many renovations are taking place in order to satisfy this need.”
-Patrice Willetts, Realtor and broker, Coastal Properties
 
“The Wilmington residential real estate market is swiftly moving under the $300,000 price point, especially in sought after school districts.
Average sales prices rose 5.6 percent from second quarter 2013, and average days on market is hovering around 124 days.
We are back to the days of showing a house, buyers loving it and then standing in the yard calling the agent to make sure there aren’t any other offers on the table.
We might whip out the iPad on the spot to write up an offer. We try to avoid the expensive ‘multiple offer situation’ for our buyers.
We have also seen the number of foreclosures dry up. The question is, have we gotten to a place where people are potentially overpaying for foreclosures?”
-Stephanie Lanier, owner and broker, Lanier Property Group

COMMERCIAL LANDSCAPE

“Both 2013 and 2014 have been better from a transactional perspective for many commercial brokers than were the previous four years. I’d describe the overall market as slightly improved and steadier than it has been before now. Conversations with many local commercial brokers, appraisers and lenders bear this out anecdotally.
Loopnet, an online commercial real estate service which tracks trends around the country reports that the listed price for office, retail and industrial properties declined from 2009 to the end of 2013. There has been a slight uptick in 2014 for all three categories, which is noteworthy and reason for optimism.
Likewise, the average sold prices for retail and industrial properties increased in 2014, while the average sold price for office properties increased in the first quarter before turning slightly downward in the second quarter to begin where they started the year.
Overall, I’d grade the market much studier than it was two years ago, as witnessed by the fact that most lenders have jumped back into the game, and they are actively looking for smart lending opportunities.”
-Hansen Matthews, co-owner and principal broker of Maus Warwick Matthews & Company
 
“The national commercial real estate industry appears to be showing signs of improvement. 
In May 2014, the National Association of Realtors (NAR) reported that in the first quarter
2014 the national average sales volumes for commercial real estate activity rose 11 percent from over a year ago, and sales prices increased 4 percent year-over-year.
With regards to leasing activity, NAR shows a 5 percent improvement from the previous year and a 2 percent increase in rental rates over the previous quarter.
On a local level, lease rates are going up, according to statistics provided by Loopnet.com. This is evident in our retail, office and multi-family sectors as you see new development in areas like Mayfaire, downtown, Eastwood Road, College Road, Oleander Drive and Porters Neck. 
Industrial activity is also showing some rebound with smaller to medium users looking for expansion into larger second-generation space. As lease rates continue trending upward and vacancy slowly grows smaller, the need for new development should continue to increase.”
-Tyler Pegg, co-founder of The CRESS Group of Coldwell Banker Commercial Sun Coast Partners