Davidson County Market Watch Report – 3rd QTR 2019

We hear a lot of talk regarding the housing market on the national news, internet, and social media channels.  But buyers and sellers need to understand that each real estate market is different.  The truth is we do not have a single real estate market in the United States.  Instead, we have thousands of individual markets that follow different paths based on the area’s location and economic factors.

Buyers and Sellers are wondering if the end of 2019 and 2020 will be a good time to enter the real estate market.  The answer depends on your location, how long you intend to stay in the home, and your financial situation.

Home prices have continued to appreciate in most areas in the country.  This trend is expected to continue through the end of the year and into 2020.  However, in some parts of the U.S. homes prices have started to level off.

Since the housing market recovery began in 2012 and 2013, home values have risen at a rapid pace.  In January 2019, the National Association of Realtors showed that home prices in the U.S. rose 47% over the past six years, while wages only rose by 16%.  This fact explains why some markets across the country are now considered unaffordable to the average wage earner.  North Carolina is one of the few states that still has a low median sales price.  The median sales price for a home in North Carolina is about $163,000.

Our home values in North Carolina have appreciated nearly 6% over the past 12 months.  Since the end of 2015, home values in NC appreciated 12.05 percent on average compared to the national average at 5.86%.  Supply is still tight at the lower end price range for first-time buyers, but it is improving as builders are scrambling to match the demand for this price point.

The Median Sales Price for single-family homes at the end of the 3rd QTR for 2019 in Davidson County is $169,900.  This figure was slightly higher than the Median Sales Price of $167,7000 at the end of the 3nd QTR for 2018.  There were 580 closing in the 3rd QTR for 2019 for single-family and townhomes.  This was up by 1.1% from 2018 when 571 homes sold.

Of the 580 homes that closed, the first-time buyer market (homes priced under 200K) accounted for 57% (332 listings) of these sales.

At the end of the 3rd QTR 2019, we have a 3.5 months supply for single-family homes and a 1.2 months supply for townhomes.  Sellers still have the upper hand in negotiations in all price points.

The first chart below shows the number of homes for sale by price range during September 2019.  The 2nd chart shows the number of properties that closed by price range in September.  As you can see, the price range below 200K had the most closed sales in September.

The first chart shows how many days homes were on the market by price range.  The price range of 100K to 200K were on the market for about 7 days before going under contract.  As you see, there is a great demand for homes in this price range in Davidson County.

High Rock Lake is located 9 miles south of the City of Lexington on Highway 8 in Davidson County.  Residents enjoy the slower pace of country living while taking advantage of all the water activities the lake has to offer which include boating, swimming, water skiing and fishing.

• Inventory is improving slightly but will still be a challenge for buyers looking for homes under 200K in Davidson County.
• Since most people have to obtain a loan to buy a property, the first step a buyer should take is talk to a lender to start the loan process.  Already having a pre-approval from a lender shows a seller that the buyer is serious and can afford to buy their property.
• Besides the price tag of the home, a big part of the cost of homeownership is the interest you pay for financing the property over the life of the loan.  Mortgage rates are still low.