First quarter report: New home construction

Even in this recession, Raleigh is a growing city and the new home market is important to our economy. Following are a few notes about the current state of our new home market:

1st quarter 2011 compared to 1st quarter 2010:

  • New home inventory is down 18%
  • Current inventory of new homes is 9 months based on the sales pace of the 1Q/11 compare to 10 months in 1Q/10
  • Pending sales are down 23% to 985
  • Closed sales are down 4% to 738
  • The most closings in the 1st quarter of 2011 were in Heritage of Wake Forest with 32

Closed sales comparisons will be swayed in the 2nd quarter as orders for new homes in 1Q/10 were increased due to the home buyer tax credit incentive.

New home sales are struggling to compete with re-sale properties that are selling at distressed prices. Foreclosed and short sale homes account for  approximately 20% of current real estate sales in the Raleigh area.

The history of 1st quarter sales for Raleigh Real Estate Market

1Q New Home Sales History- CLICK TO ENLARGE

Information used for this report is from TMLS Market Update Edited by Stacey P. Anfindsen of Birch Appraisal Group of Cary. e-mail: staceypeter@smapublications.com