The average sales price of homes across the Triangle topped $300,000 for the second consecutive month as sales prices of both new and resale homes registered health gains from a year ago.
The average overall sales price of a Triangle home was $307,400 in May, 8 percent higher than a year ago, according to the latest Triangle Multiple Listing Service data for Wake, Durham, Orange and Johnston counties. April marked the first time that the overall average sales price, including new and resale homes, exceeded $300,000.
The average sales price of resale homes alone in May was $289,000, a 7 percent hike from a year ago.
“It’s good news and bad news,” said Stacey Anfindsen, a Cary appraiser who analyzes the MLS data. “It’s good news if you own a home because the value of your home, in theory, is going up. But it’s bad news if you’re in the market because things are becoming more expensive.”
Anfindsen noted that both new and resale homes are fetching 22 percent more than they did four years ago, when the average sales price was $251,000.
“That’s a big jump,” he said.
Sales prices in the Triangle have risen year-over-year for 37 consecutive months.
A total of 3,198 homes were sold during May, up 2 percent from a year ago.
“There’s more buyers than there is inventory,” said John Wood, owner of Re/Max United. “That continues to be the story.”
As a result, homes are selling faster.
On average, homes were on the market for 36 days before being sold, less than half the number of days four years ago.
Three-quarters of the homes sold in May were sold within 30 days. More than one-quarter of the homes sold – 28 percent – fetched more than the list price.
For resales, “the condition of the home is crucial to get not only top dollar but a fast sale,” Wood said. “A lot of people don’t want to take on a project. They want the kitchens updated, they want the bathrooms updated, they want the carpet or the hardwoods replaced or refinished, and they want it painted.”
Wood’s advice for sellers: “Put your home in showroom condition and you will be happy with the results. We believe you will get your money back out for the money you have to spend to do that.”
But the market has a glut of high-priced homes.
For homes priced priced at $800,000 and up, “there’s too much inventory and not enough demand to absorb the inventory,” Anfindsen said. “It’s especially acute in the resale market. The issue with that inventory is that it’s between 10 and 20 years old and it’s competing against product that is brand new.”