November MLS Report

This is a report prepared by David Flore of Cunningham & Company and is an excellent summary of how the market in our MLS area performed. For those of you who like statistics, this is an excellent read. There is also a good summary of the Carolina/Kure Beach market included in this report. The Charts and Graphs would not copy into my blog, so if you would like the full report, please let me know and I'll send it to you.

David’s Comments –

Season’s Greetings while this is the last report for 2010 we still have 19 days to get home sales closed. My January report will sum up our 2010 sales production. The Holiday Season offers us an opportunity to reflect on the good times of this past year and a chance to set goals and plans for the coming year. I want to say Thanks to all of you that I have worked with over the course of 2010. We have a lot to accomplish in 2011, especially a new Sales Contract. I wish you and yours the best during this holiday season.

Have a Merry Christmas & A Happy New Year

November’s average sales price has managed to exceed last month as well as Nov 2009 & 2008 average sales price. While the numbers of sales were down from last month and as well as down from a year ago. Our average sales price is up 6.8% over last month and up 11.2% from Nov 2009 and up .05% from Nov 2008. When we look at our year to date average sold price we are only down 1.9% from Nov 2009. Our median sold price is up from last month by 5.6% and up by 6.0% from last November. Our median sold price has rebounded and has risen. Our rolling 12 months we are up 4.5% in sold units and our average sold price is only down by 2.3%. Sold units are only 3 units down from last month and down 90 from last November.

In the month of November we saw a decrease of 143 homes in our listing inventory, we have 5,007 homes on the market as of December 1st. This continues to put us in a strong buyer’s market with a listing inventory of over a 16.3 month supply. With the low sales in November this affects our month supply with an improvement of .5 months from last month. Our average list price has stayed below the $400,000 range for the last year; we are currently at $353,465. In November we saw an increase in our seller concessions, it is now 28.2%. Our average days on the market remain 121 days. The list to sold ratio is 93.2% this number needs to continue to get better. The number of homes that sold in 15 days or less continues to remain very low, 14.4% of November sold homes. The 30-year fixed-rate mortgage (FRM) averaged 4.61% with an average 0.7 points for the week ending December 9, 2010. We have hit historic lows in mortgage rates and they are possibly on the rebound. Call me so I can show you or your clients how they can get the benefit of these rates. Have a great week and let me know what I can do to help you and your clients.
Despite all the media comments about our markets we are still lending money for residential mortgages. If a client has income and credit and some sort of down payment; they can get a mortgage. It goes to the basic three C’s – Capacity, Collateral and Character.

Listing Inventory
In November we saw a decrease in listing inventory of 143 units. We are about 106 units under December 1, 2009. We have 5,007 single family homes for sale in our MLS. The average list price of $353,465 is down by $10,632 from last month. The average list price has decreased by 6.8% from December 1, 2009.


Monthly Average Sold Price
Our monthly average sold price is up by 6.8% from last month and up 11.2% from November 2009 and up .05% from November 2008. Our average sold price is up by $16,103.00 from last month. November average sold price ($251,522) shows an increase of 7.3% from year end 2009. Our average sold price is up by $25,368.00 from last November and up $1,343.00 from November 2008.

Monthly Sold Units
This month’s decline in the number of homes sold when compared to previous year is down 90 units. The number of sold homes is down 3 homes from last month and down 22.7% from November 2009. Last month we had 309 sold units and this month 306 sold units, last year in November we had 396 sold units.

Average Sold Price Year to Date
Year over year our year to date numbers have dipped a little.
2003 year end average sale price $ 186,137
2004 year end average sale price $ 210,048
2005 year end average sale price $ 254,080
2006 year end average sale price $ 264,498
2007 year end average sale price $ 273,408
2008 year end average sale price $256,498
2009 year end average sale price $234,379
2010 year to date average sale price $230,335

While our current year to date numbers are lower than Year End 2009 they do show promising signs that our sales are on the upswing. The eleven months of 2010 has a 130 sold unit gain over first eleven months of 2009. The average sales price is down 1.9% for the first eleven months of 2010 than the first eleven months of 2009. Our median sales price is just .01% behind 2009.

Rolling 12 months
When we look at December 1st, 2009 to November 30st, 2010 we have 4,499 sold units and when we compare December 1st, 2008 to November 30st, 2009 we have a 193 unit gain (4,306 sold units). When we look at the same rolling 12 months for average sold price we see that we are only down by 2.3%. So the dates of 12/1/2009 to 11/30/2010 we have an average sold price of $230,335 while from 12/1/2008 to 11/30/2009 we had an average sold price $235,715.

Median Sold Price
Our Median sold price rebounded this month an increase of 5.6% from last month, up to $190,000. Our national numbers lag by one month. Our median sales continues it small climb while the national median has some smaller declines. I am hoping we can see the national median sales price reverse its downward trend.

Pending
Pending Sales – A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Sales are typically finalized within one to two months from signing. I look at the total pending units on a regular basis and this is how they chart out. We saw our peak pending numbers about May 3rd. Our pending index is dropping to our winter lows; November is 5.7% down from last month and down 11.0% from last year this time.


Market Absorption rate – The number of homes sold in November, 306 divided by the current listing inventory, 5,007 gives us a 16.3 month supply of single family homes. This decreased by .50 months from last month. We need to get this inventory back under 12 months. With a large inventory and the few sales in November this affects our market absorption. With rates where they are and plenty of inventory; we can get this number down.
List to Sold price ratio – the average list price of the sold properties is $269,991 and the average sold price is $251,521 for November which gives us a 93.2% list to sold price ratio – a .20% change from last month. We have now managed to stay under 95% for over a year and several months.

Seller Concessions – We had 28.2% of sold properties report a sales concession for November, an increase of 3.5%. We want this number to go lower.

Days on Market – The average days on market for the sold properties is now at 121 for November. That is about 4 months to keep a property on the market. Only 14.4% of the properties were placed under contract in less than 15 days for the month of November.

Carolina & Kure Beach
There are currently 392 single family homes for sale and this represents a 13 unit decrease over November 1, 2010 and 7.8% of our total WRAR inventory. The average list price is $401,925 a decrease of about $10,434 from November. In November there were 29 homes sold, divide that by the homes available and you have a 13.5 monthly supply of homes in Carolina and Kure Beach. The average sold price for the month of November was $253,917 and is down $9,522 from last month. When we look at our rolling 12 months December 1, 2009 to November 30, 2010 we have 335 homes sold at an average price of $281,225. While December 1, 2008 to November 30, 2009 we had 278 homes sold at an average price of $301,186. 2010 continues to be a better year than 2009 for Carolina Beach and Kure Beach.
This data was pulled on December 11, 2010, based on information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through November 30, 2010.

The Market
Bond Yields Rise so do Mortgage Rates
Freddie Mac released the results of its Primary Mortgage Market Survey®, which found that once again, both fixed- and short-term mortgage rates rose this week. This was the fourth week in a row where fixed-rate mortgage rates were up.

News Facts
30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an average 0.7 point for the week ending December 9, 2010, up from last week when it averaged 4.46 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.
15-year FRM this week averaged 3.96 percent with an average 0.7 point, up from last week when it averaged 3.81 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.

Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.
"After Europe made strides in its debt situation, investors left the security of U.S. Treasury debt causing bond yields to rise and mortgage rates along with them. Interest rates for 30-year fixed mortgages are now almost a half percentage point higher than the record low set in mid-November, which for a $200,000 conventional loan amounts to $50 more in monthly payments.

"Housing demand appears to be picking up recently. Existing pending sales jumped 10.4 percent in October to the strongest pace since April, according to the National Association of Realtors®. More recently, mortgage applications for home purchases rose for the three consecutive weeks ending on December 3rd, representing a 17.7 percent increase and the strongest pace since the week of May 7th, based on figures released by the Mortgage Bankers Association."
Freddie Mac

30 Year Fixed Rates


The Offer to Purchase and Contract – January 1, 2011
Are you Ready for the New and Improved - Offer to Purchase Contract? I guess the real question should be – Is your Lender Ready? At Cunningham & Company – We are Ready!

We are prepared to work with your clients in advance of contract to get them “Buyer Ready”. The new contract advises the buyer to consult with a lender prior to signing the offer. With a “Buyer Ready” you and your client can go house hunting with confidence. All we will need is a property, sales contract, acceptable appraisal and a flood certification. Your buyer benefits because they have a better negotiation position and could offer a shorter Due Diligence period. As an agent you benefit with your buyers credit and financial issues resolved prior to writing a contract. You come away with smarter time management and a happier client. Contact me for further info on getting your client “Buyer Ready”.
At Cunningham & Company we can provide you with the right mortgage to meet your specific needs.
I offer these key statistics to keep you informed as to how our market is moving. With 20 years of real estate sales and management and finance in my background I am able to evaluate the current conditions and provide you with accurate data. With key information from your clients I can evaluate their needs and offer them the best plan for their current mortgage. Call me today for a quote.

Cunningham & Company is a full service Mortgage Banker - we handle everything in house. We do first time buyers, USDA, FHA and VA loans, Conventional and Jumbo Loans, 100% financing and we have a large selection of adjustable rate loans as well as several interest only programs. Call me today with my background in real estate and the resources of Cunningham & Company working together... you can't miss. A loan in the crowd.


David Flory