Below I have a review of the Raleigh Luxury Home market for 2014 and into 2015.
Information was taken from our Triangle MLS data system and the Tarr Report.
The $500,000 to $800,000 have been steadily increasing in demand in some areas since the beginning of 2014.
Indicators are showing this to continue into 2015. Homes priced over $900,000 have shown
lower value increase and demand.
Showings during the 4th quarter increased 22% and decreased 18% between August and September. Governors Club was the most shown development during the quarter.
Overall luxury inventory increased by 11%, new home luxury listings increased 32% and re-sale luxury listings increased 4%.
The number of luxury listings entered into the system during the 4th quarter was 6% higher, the number of expired listings decreased 16% and the number of withdrawn listings increased 3%.
The average days on market for the listings decreased to 167 from 176.
Inventory peaked for the year in August and the drop in September should be the beginning of the seasonal pattern. Total inventory is 56% of what it was in 2008, just prior to the recession.
The number of sellers who dropped price from original list increased 6% and accounts for 39% of 4th quarter end Inventory.
The current average price cut for the active listings is 6%.
Listings with a status change to pending during the 4th quarter increased 11%.
Pending sales peaked for the year in June and the house selling odds increased compared to 2013.
This is indicative of a stronger market. The days on market for the pending sales increased to 92 in 2014 from 86 in 2013. Average days on the market of the closed sales was 107.
Year to date closings were up 15%, quarterly closings were up 10%, new home quarterly closings were up 15% and resale quarterly closings were up 9%.
The million+ market continued to improve in 2014, with a 6% increase in closings compared to 2013.
The majority of closings within the luxury segment occur in the 500k-599.9k segment.
The lowest supply is found in the 2 million+ segment.
Initial list is price critical.
As with any other segment in our market, the correct initial pricing of a listing is very important.
Quarterly closings where the original list price was equal to the final list price sold in an average of 76 days at 99% of list.
Quarterly closings where the original list price was higher than the final list price sold in an average of 147 days at 91% of original list.
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