Finally in – the January 2011 residential sales statistics for the Pinehurst NC area real estate.
Looking at this graph you might think things are not all that great for Pinehurst area homes sales. So to understand what is going on you need a bit more information.
- Even though gross sales were down over December 2010 this is usually the case from December to January.
- Even though January 2011 looks not much better than January 2010 this is deceiving.
- January 2011 sales had an increase in unit sales of about 20% over January 2010 (61 vs 50).
- Average prices fell in January 2011 from January 2010 by about 20% (280,000 vs 230,000). This isn’t as bad as it seems.
I think the significance is the increase in unit sales year over year during the same time period. Why? Because at the peak of the market back in 2006 and 2007 we saw prices increases while the unit number of sales decreased. Pinehurst and the surrounding area is seeing the opposite of what we saw during our peak real estate period.
What does all this mean. First, remember I am not an economist – just a real estate broker that has been studying the numbers for the past 6 years. And it appears we are at the bottom which could be a very good thing. It is important to remember that even though the number of sales are increasing – it may be another year or two before prices start to rise. We may even see some more decline in pricing as far as the high end market goes.
A number that indicates pricing needs to come down is the difference between the average list price of a home sold and the average list price of all available homes. This is about $60,000. Average list price of homes sold in January was approximately $240,000 and the average list price of all residential homes in the Pinehurst real estate market is approximately $300,000. This is a large span and the gap needs to close before we can see pricing improve.
Remember – this is my opinion of the Pinehurst NC real estate market based on the residential sales statistics.