Greensboro Triad Real Estate Blog

While many of the leading market indicators have been showing more and more signs of promise here in Greensboro, North Carolina the last month of July all three numbers are positive!  The Triad of North Carolina as a whole is turning the corner.  I have been tracking the numbers and while the number of residential units sold have been climbing all spring as they normally would they actually dipped a little in July.  The positive about this is that the average sale price of those units sold jumped significantly!  To refer back to my previous blog about a Trickle Up economy as all those first time home buyers jump in they free up those homeowners to buy their second or third more expensive home!

Now the other exciting indicator is that the inventory of homes for sale across the Triad is actual going downward!  This is even during the peak season which of course means if the trend continues you will actually start to see a shift in the Supply & Demand curve.  I know you remember this from your Economics class once the supply for a product (in our case home inventory) goes down the demand will increase which will lead to higher prices.  In other words the market values for homes in areas with limited supply will increase if the demand for those areas stays constant.  I mean this is exciting from the standpoint that I have many listings that of course as soon as my sellers sell that home they are going to turn right around and buy their next home with me.  Those clients I do not even put in the same grouping with the many buyers I am working with.  Of course some of those buyers are clients that have homes in other areas that they need to sell first.  So I am really hoping this trend is across our great country and not just here in the Triad.  Of course the excitement is just getting ready to get interesting as we start a count down of days to the deadline for the First Time Home Buyers tax credit.  November 30th is approaching rapidly and I am preaching to all my First Time Home Buyers that if they plan on taking advantage of that $8,000 tax credit they need to keep their eye on the calendar.  I am telling everyone to plan on being under contract before the end of October.  So as August rushes by the numbers are showing a real economic turnaround for the real estate market here in Greensboro, North Carolina and the rest of the Triad.

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC.  If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story - Coldwell Banker Triad Realtors - 336-327-1841 also at http://www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

OK just wanting to verify that anyone else is noticing what is happening here in the Triad of North Carolina.  I have been tracking the real estate sales numbers this year and while the volume of sales have fluctuated and actually been climbing the most interesting part is that the average sales price has been moving upward.  Our trickle up has been that the First Time Home Buyers tax credit is actually doing its job.   For those that have the foresight to look ahead there are of course all those sellers out there that have put their first home up for sale.  Well thanks to all the first time home buyers out there buying that home. 

Now the Trickle Up begins here in Greensboro, North Carolina.  You see those sellers selling their first time home now are free to move UP and buy their second home! 

So as we see the upcoming rush of First Time Home Buyers getting their first home that makes it possible for all of those sellers of resale homes to move up and buy their next home which will most likely be more expensive then their last.  So that is explaining the upward movement of the average price of the homes sold here in the Triad of North Carolina. 

As I am sure all of my fellow realtor's are seeing in their perspective boards more and more First Time Home Buyers are trying to take advantage of the $8,000 tax credit.  They have only till November 30th to be closed and in that home.  So since we are down to basically about 10 weeks to get a home under contract and hope that you can get closed within 30 days. 

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC.  If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story - Coldwell Banker Triad Realtor's - 336-327-1841 also at http://www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

After Lenn Harley'scomment on Part I of this topic I decided to do more digging.  It seems that after getting some information from builders on the new construction market I decided to dig into the "Big Picture".

Well, we are definitely turning the corner considering that last year we got up to 12 months of inventory on hand going by our absorption rate.  Just looking at our gross numbers across the Triad of North Carolina I definitely believe that the window of opportunity for a "Buyer's Market" is definitely starting to close.   No matter what the media says the numbers don't lie.  Our new contracts in just the last seven days are 246.  That is including today being Sunday morning which most admin people don't work.  OK now go thirty days back and the new contracts total is 753.  Now to address Lenn's very excellent point that OK we have new contracts but, how many make it to close.  First off with the lender's tightening up their qualifying rules and the majority of sellers not taking any contingency contracts the average number of closings for 30 days going back 90 days to get an average is 718.  Using the average number of closings that puts us at below 7.5 months of inventory on hand.  If we continue this trend we need to remember that not as many homes are coming onto the market since just about all builders have stopped construction.  So we should be getting closer to a "Sellers Market" inventory level soon.  Even if the builders jumped back in and started back up there would not be any inventory really hitting the market for at least 90 days. 

I for one am splitting my time with buyers and sellers.  I had over a year ago shifted my focus more towards buyers.  Guess what looking ahead maybe looking both ways and then maybe back towards my sellers soon.  Either way I am not slow and it is busy.  Spring has sprung and so has our market.  I also think that despite the foreclosures we will start to see the average price of homes sold rise also. 

Well you know what all this means don't you

                                 It maybe time to break out the Tutu and do the HAPPY DANCE!

YOOHOOO!

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC.  If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story - Coldwell Banker Triad Realtor's - 336-327-1841 also at http://www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

I have been working with multiple buyers in the $400,000 to $500,000 range.  We have been looking at new construction because let's face it we all think it is still a buyer's market right?  We put in one offer on a home that the custom builder had four properties when we started looking at one.  When we went to put in the offer they had contracts on three of the four homes (IN THE SPACE OF TWO WEEKS!)  I also have been keeping tabs on the other markets I have a client that she and her husband are getting their home ready for me to list.  Well she works for a national builder in our area in their office putting in contracts.  I will let her words speak for themselves. This is just talking about the immediate Greeensboro area and several of their communities.  "  Things have definitely picked up. XXXXXXXX had 22 sales in March. It was slow at
first then BOOM. I was going crazy last week trying to get everything entered".

Now back to the higher end market it seems everytime we looked and added one or two to our list one of the ones on the list went under contract.

So let's hear it how is your market doing out there.  Here in Greensboro, North Carolina we are getting close to no longer having a "buyer's market but even until it becomes a SELLER'S MARKET!

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC.  If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story - Coldwell Banker Triad Realtor's - 336-327-1841 also at http://www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

For the second time in less then thirty days I have multiple offers on one of my listings.   I am also seeing builders not budging off of their homes.   One builder had four homes listed two weeks ago.  My buyers submitted an offer on the low side but he it's a "buyers market" right.  Well you know a builder is not going to be hungry if in two weeks time he has three contracts on four of his homes.   There are alot of buyers out there that have been searching for some time now.  With the interest rates holding below 5%.  It is spring time and nothing brings out the buyers more then good weather.  I have been out with some of my buyers and it is a full appointment schedule sometimes where ever you go.  Alot of those buyers are not shopping anymore. 

HAPPY HOUSE HUNTING EVERYONE.  BUY NOW OR IT MIGHT NOT BE THERE LATER!

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC.  If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story - Coldwell Banker Triad Realtor's - 336-327-1841 also at http://www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

OK I have heard enough about this is a DOWN MARKET all this doom and gloom is rather ridiculous.   If I put stock in what everyone is saying I would be depressed and down to.

BUT,  in the true sense of Capitalism this is not a down market but simply a DIFFERENT MARKET!  If you check the number of transactions happening there are plenty of deals being made.  You have to adjust your sights.  Look elsewhere.   Earlier this year I turned my focus from sellers to buyers.   So I have a balanced pipeline.  Now of course I have added investors on both ends (buyers and sellers).   Do you really think in this down market with the stock market there are not people out there getting filthy rich playing the ups and downs in the market.   You just have to change your focus.  Don't blindly go along and believe what everyone is whining and crying about.  I don't believe that is the type of blind faith we need to have.

I mean come on this is capitalistic survival training at it's best.   When one door shuts another opens.  So don't stand there at the door banging on it and waiting for someone to let you in.  Go through the door that is WIDE OPEN!!!!  I learned at a very young age owning my own restaurants you have to change periodically just to stay on top.  So if you wait for change to slam the door in your face it is already too late.  Learn to see when the door is closing then start looking for the other doors. 

The business is out there GO GET IT!!

OK AR let's here how many times a day do you get asked how is the market?  I get this wonderful conversation starter several times a day.  Hey jackpot I went in for my physical and who asked me, MY DOCTOR!  He is not ready to sell but, I could tell how attentive he was to my answer.  I love those open ended questions it is like SELL ME!   I don't fluff or blow smoke I will tell them how it is.  This is the first step to winning their trust.  The intelligent client will appreicate it and value you.  Otherwise that same person will not become your client.  These people can tell if someone is just trying to pitch them.  For example I have new buyers a young couple looking to buy a new home.  We looked at a home with a market value of say 300K.  Well we were going to put in an offer but then someone else had just put one in for over their ceiling price.   Now the husband wanted to talk about going up on their price.  It would have put them well over the amount that would keep them from getting into trouble with payment amounts and everything.  The wife was very concerned and did not want to even discuss it.  The husband still wanted to push on it.  So I sat down with them and put the numbers on paper to show them.  This enabled the husband to calm down and understand why his wife was so concerned.  Yes they could get the financing but, the reason we set the limits before was for their budget and future.  They are back on track and we are looking.  So just keep it honest and you clients will stick with you.