A question I am continually asked is “How is the market?” I hear it at the coffee shop, at lunch, in line at the grocery store and at cocktail parties... numerous times, every day.
The answer is not as simple as you might think. My mentors suggest I use the standard answer of “That depends.”
But, depends on what
, pray tell?
Buying Or Selling?
To start, are you a buyer or a seller? In New Hanover County, if you want to buy a single-family home, the average price
has increased 7.5 percent year after year. If you want to sell your home, the average selling time
has reduced 13.5 percent from a year ago and inventory is down to a 3.4 month’s supply – an extreme seller’s market.
Let’s dive a little deeper. Our typical buyer asks for the following: new construction, three bedrooms and two full baths, a price point under $350,000 and in New Hanover County. If building stopped today and only the existing inventory was sold, we would be out of houses in less than two months!
On the other hand, let’s say you want to sell your 2,500 square foot, four-bedroom, three-bath home. The inventory supply is greater than six months (down 16 percent from this year’s high), but still reflects a market with much more equilibrium. Neither buyer nor seller has a distinct advantage during negotiation.
Generally speaking, inventory is low, demand is high and new construction seems to be king of the hill.
One neighborhood that seems to garner particular attention is Landfall. Y’all know it by the tall white wall and manned security gates bordered by the Atlantic Intracoastal Waterway (AICW), Eastwood Road and Military Cutoff.
Landfall is perennially recognized as the premier, gated country-club community in New Hanover County. While the average sales price rose over $100,000 in two years, it is of note that it still takes an average of 157 days on the market to sell, and with more than 100 homes actively listed, there is nearly a year’s supply of inventory available.
While this represents a decrease of over 12 percent from three years ago, it still indicates a buyer’s market and savvy shoppers expect a discount to the list price of nearly three percent. Homes in this area sell at around $181 per square foot, with an average sales price of $750,000.
Porters Neck Plantation
By comparison, homes in Porters Neck Plantation take an average of 86 days on the market to sell, and with about 38 homes actively listed, there is a meager eight-month supply of inventory selling at 97.1 percent of the list price. These homes sell at around $154 per square foot, with an average sales price of $490,000.
Wrightsville And Carolina Beaches
Our neighbor across the AICW, Wrightsville Beach, has an 8.9-month supply of houses selling at an average healthy sales price of $842,700, while our friends to the south in Carolina Beach have a “seller’s market” supply of only 4.5 months, with an average sales price of just over $305,000.
That is why when I am asked, “How is the market?”, I think it is safe to say, “That depends!”
Overall, we have had tremendous success this year, with over $50 million in closed or pending sales, and we helped nearly 200 families achieve their real estate goals.
Source: Cape Fear Realtors Association as of Dec. 4, 2017
Kirk Pugh is a 25-year hospitality professional turned real estate broker. Licensed since 2009, together with his partners Becky Brown and Tyson Emery, they own and operate the KBT Realty Team, a division of Keller Williams Realty. Originally from Louisville, Kentucky, Kirk has been blessed to live in some amazing places during the course of his career and has called Wilmington home since 2001.
“Seek first to understand before being understood" is one of the more recent quotes on Kirk's list of favorites. Understanding his clients, who they are, how they live and where they are in life’s journey is most important in determining how he can meet their needs.
• Past Board Member of the Coastal Carolina Real Estate Investors Association
• Sixteen years of immersive local real estate knowledge
• Attend Port City Community Church
• Volunteer Cape Fear Habitat for Humanity
• Access Wilmington
• American Heart Association
• Avid Tennis Player
• Consumer of fine wine
Kirk makes his home in Landfall with his wife Janine, my step-children Ryan and Samantha, and his son, Austin. Their two dogs and three bunnies allow us to stay there with them.