Nov. 25, 2007 - Tell me about the Luxury Home Market in the Triangle - What's up?

While the rest of the national real estate market is has taken a turn for the worse, the Triangle real estate market has continued to remain strong. Well, at least for the lower priced homes in the Triangle. Single Family Homes less than $300k all over the Triangle are in short supply-less than two months in most cases. On the other hand, high end properties have higher than average inventories compared to the rest of the US.

What if I'm interested in buying a luxury home in the Triangle - Is now the time to buy? If so, now would be a fantastic time. The Triangle luxury home inventory is very high, and, that makes for a great opportunity for buyers. The winter months are slow and builders are anxious if they have standing inventory. They are willing to negotiate during this time of year and, in the Triangle over the past several years, that has not been the case.

Let's take a look at some numbers and see why the opportunity is so great for buyers in the luxury real estate market in the Triangle.

• Q32007 closings were 6% higher than seen in the third quarter of 2006 which means the market is growing
• There are 37% more re-sale listings and 39% more new home listings since Q32006.
• 22% of all luxury home closed sale activity has occurred within the North Raleigh/Wake market. Cary/Apex/Morrisville is second at 21% and Chapel Hill/Carrboro is third at 13%.
• Brier Creek in Raleigh attracted the most amount of luxury home buyers during the first nine months. The development was followed by Cary Park and Wakefield Plantation.
• The overall market has a 5 month current supply, the luxury segment has a current supply of 11 months.
• Current sellers are showing signs of flexibility on their price. For example, at the end of 3Q '07 there were 664 sellers who had dropped list price, compared to 389 at the end of 3Q '06.
• The average re-sale house sells for 97% of original list price. The average luxury re-sale house sells for 89% of original list price. That's a big difference.

What does this mean to a buyer? Builders are sitting on the homes longer and having to reduce prices to compete with the expanding inventory. Since the timing is right one can find opportunities for the savvy buyer. Many buyers in this price point have bought and sold several homes and sometimes feel a Realtor isn't really necessary. To the contrary, an experienced Realtor is essential in finding, not only your dream home, but a home that will be a smart investment in the long-term.

That said, here are a few articles of reference for your review on our market:

Luxury Home Information for the Triangle:

Triangle Real Estate - Top 10 Appreciating Luxury Home Neighborhoods in the Triangle

Luxury Home Trends in the Triangle 4/18/2007

Triangle Luxury Home Market 3/7/2007

Luxury Neighborhood Profiles

Cary NC Real Estate >>Preston in Cary - Prestige, Location, & Fun for the Family

Renaissance at Regency in Cary, NC- The long wait is finally here

Hidden Lake Parade of Homes Entry - A little bit of Tuscany in the Country

Hasentree in Raleigh - A Sneak Preview to the 2007 Parade of Homes

Sunset Ridge in Holly Springs, NC - Quality & Value are true Hallmarks

Cary NC Real Estate >>MacGregor Downs in Cary, NC

Jul. 2, 2008 - RE: Tell me about the Luxury Home Market in the Triangle - What's up?

Jul. 2, 2008 - RE: Tell me about the Luxury Home Market in the Triangle - What's up?