The Star Team has been collecting data and compiling local market statistics for the last 20 years. Now, the complete report is available online at www.StarTeamRealEstateReport.com. Feel free to check it out!
Here are some summary statistics from 2018 that you need to know about:
1. Total unit sales were down 3% from 2017.
Our market peaked in 2005, but steadily declined through 2009. In 2010, we saw our first increase, which continued for eight consecutive years.
2. Total dollar sales were down 2%.
3. The average sales price was almost flat year over year.
The average sales price peaked in 2007, then took a dive for three straight years. Since 2014, the average has steadily increased. At the end of 2018, it was slightly higher even than 2017. We believe that the price will continue to move upward as inventory continues to decrease.
“Both rate increases and lack of inventory are of great concern to the industry in 2019.”
It’s important to understand that Hurricane Florence had a significant—but unmeasured—negative impact on our fourth quarter sales and our resulting total performance in 2018.
4. Pending contracts were down 5%.
5. Total inventory was down 12%
Our months’ supply of inventory has expanded over time from 5.4 months in 2005 to 21.4 months in 2009. Since then, we’ve seen a steady decline in inventory over the past nine years. Historically, six months of inventory has been declared as a balanced market which favors neither buyer nor seller. 2018 ended at 4.9 months of inventory, which suggests that we are in a seller’s market.
6. 30-year fixed mortgage rates climbed from 3.95% to 4.64% by the end of 2018.
Over the past 24 months, rates hit their lowest point in the summer of 2016 at 3.44%. Since then, rates have risen steadily. 2018 ended with rates at 4.64%.
We expect a modest upward trend to continue in 2019. So far, there has been no measurable loss of sales due to rate increases. However, both rate increases and lack of inventory are of great concern to the industry in 2019. If you intend to sell in the near future, right now is probably the time to do so.
2018 was a great year for us here at the Star Team, and 2019 is going to be even better. If you have any questions or need any help buying or selling in the meantime, don’t hesitate to reach out to us. We look forward to hearing from you.