Monday, July 29, 2019 / by Anne Rose
Kirk Pugh jumps right into some numbers to see what that means to the real estate buyer or seller. If you are a seller today, whether you are getting a job transfer, moving to get closer to family, or needing to upsize for a growing family or downsize, the market is very much in your favor right now. "Absorbtion rate" is something that we talk about internally on the KBT Realty team. At what pace are homes that are put on the market in various price categories selling, and what is a reasonable expectation a seller can have for how long it may take to get their house sold?
If we look at the market by price point, Kirk suggests, up to about $350,000, in New Hanover county, assuming a house is in a decent location and in decent condition without too much deferred maintenance, there is a three month supply of inventory. On the spectrum of buyers-market, sellers-market, a healthy market is when we have about a six month supply. Supply means how many homes are on the market, and how many have sold historically by month, and if nothing new came on the market today, how long would it take us to sell out of the existing inventory that is currently listed.
Having a three month supply of inventory, which is the current status in New Hanover county, means we are in an extreme sellers market, where the seller really gets to name their price and name their terms. This is because there is just not that much inventory out there to buy.
Kirk says the inventory in price categories is currently: $300-350K, three months supply and $225-250K, down to 1-1/2 month supply. This means there is basically nothing in this price category on the market to buy. The good news, he says, is that as you move up the scale, to $350-400K, $400-450K, an so on, gradually the numbers start to get better. In the $6-700K price point, the market is in equilibrium, with about 6-1/2 month supply of inventory and neither the buyer nor the seller have a distinct advantage.
Homes priced at $1M plus? If you've won the lottery, Kirk says, or done well in the stock market, and you are looking for that special beach home, there is over 12 months of inventory on the market. That bodes well for the buyer, because with a 12-month supply, there are a lot of homes to choose from, and buyers can drive that bus when it comes to negotiating a deal on a house in that price point.
KBT Realty Group, says Kirk, has accomplishments this year to be proud of. Year-to-date, KBT agents have sold about 158 homes, with 41 homes currently under contract to close in the next thirty days. By month-end, KBT will reach 200+ closed transactions for the year. KBT Realty - and Keller Williams in general - is moving in a positive direction. Keller Williams is the #1 real estate company in the world, with around 188,000 agents worldwide. Not too long ago, Keller Williams earned the honor of being the leader in all three metrics that measure the success of a real estate brand: number of units sold, number of agents, and dollar volume sold.
Not only is Keller Williams the #1 company in the world when it comes to residential real estate, KBT Realty Group has leapt up the ranks in Wilmington North Carolina in just a few short years, says Kirk.
"From relative obscurity to being the #3 brand in town right now, second only behind Coldwell Banker and Intracoastal Realty, makes me very proud of how fast we have climbed the hill here, having gained recognition and Wilmington market share. We are the #1 producing team at the Keller Williams franchise in Wilmington right now, and we had an all-time record month in June in a number of different metrics. We are also starting to get some regional recognition: KBT is also #13 in all real KW estate teams in North and South Carolina. Out of 10,600 groups in the entire Keller Williams organization, KBT is currently #205. We're super proud of our brand, our local brand, and especially our team. We are looking out for our clients, providing exceptional service, and negotiating fiercely for them, whether it be on the buyer side or the seller side," says Kirk.
The market should continue in this mode for a reasonable time to come, notes Kirk. The economic market is good in terms of interest rates, and inventory is low which is helping sellers with price appreciation. He sees one of the biggest challenges right now being that builders just can't build new homes fast enough. One of the issues is that builders can't hire enough tradesmen, and the speed at which they can deliver product for home buyers to purchase is greatly hampered by the sub-4% unemployment. When you need a plumber, a roofer, or a general contractor, he points out, you're standing in line waiting to get on the schedule.
At KBT Realty Group, real estate agents are always available to answer questions about local New Hanover, Pender, and Brunswick Counties, so give us a call.