Print
Real Estate - Residential

Home Sales Continue To Defy Local Industry's Expectations

By Cece Nunn, posted Sep 15, 2020
A home for sale on Royal Bonnet Drive off Military Cutoff Road in Wilmington. (Photo by Cece Nunn)
Like a rocket ship.

That’s how far home sales have soared, from a low in April in the local residential real estate market, to new highs, Realtors say.

“Coming into this year, we expected 2020 to be a better year than 2019,” said Trey Wallace, president of Intracoastal Realty Corp., during a Wilmington-Cape Fear Home Builders event this month. “But I think it's exceeded our wildest expectations despite what we've all been going through. Back in March, when COVID first hit, I can tell you that, at least for me, I was extremely concerned early on about the long-term effects of the virus. 

“And we still don't know what the long-term effects are, but I expected to see an immediate downturn, which we did see, but it hit a bottom very quickly and shot up like a V-shaped recovery. It really came back sizzling hot.”

He added, “April was basically the bottom as far as sales and contracts, and then it just shot up from there like a rocket ship.”

Wilmington-based Realtors association Cape Fear Realtors released statistics this week for New Hanover, Brunswick and Pender counties combined showing a nearly 22% jump in closed sales of single-family homes, townhomes and condos in August compared to August 2019

The numbers, compiled from the N.C. regional Multiple Listing Service, also showed a 52% increase in pending sales, 6% increase in new listings and a 50% decrease in the months’ supply, from 2.1 to 4.2.

“We normally see housing activity begin to slow a bit during the back-to-school season, but this year is far from normal,” said CFR President Tony Harrington in a news release. “With mortgage rates remaining at record lows and strong buyer demand, Realtors are preparing for a busy housing market this fall.”

Brunswick County’s residential real estate market by itself also remained "hot" in August, according to a Brunswick County Association of Realtors news release Tuesday.

The month showed sharp increases in total sales volume, average sale prices and units sold compared to August 2019. The market has already exceeded $1 billion in total sales for 2020 and is 35.1% percent ahead of the 2019 pace through August, the release stated.

“Our market showed absolutely no signs of a cool-down in August,” said BCAR CEO Cynthia Walsh in the release. “In July, we saw the highest number of homes we’ve ever seen sold in a month, and August wasn’t far behind. 

“Additionally, the inventory of available homes remains tight, with all signs pointing to a continued seller’s market as we move into fall.”

Brunswick County saw about $248 million in total home sales in August 2020, a 75% spike over last August, the release stated. The number of units sold jumped 37%, from 487 to 667. The average sale price increased 27.8%, from $291,329 to $372,449.

Is a slowdown inevitable?

“We're riding the high right now. I hope we continue to ride the high, but I think we're all expecting a cool down at some point,” Wallace said. “I don't think it will be anything life-changing or a 2008-type scenario, but it's definitely not sustainable in my personal opinion at this level.”

Preparing for whatever may come is important, he said.

One of the main challenges in the market currently is the low inventory of homes available, something that can be frustrating as real estate professionals in all facets of the industry work to keep up with demand.

Tim Milam, president of Coldwell Banker Sea Coast Advantage, who also spoke at the WCFHBA event, said “I think we've all got to be patient. We all need to be humble; we're all in this together . . . Patience is a real key thing.”
 
Three-county region combined sales statistics for August
  August 2020 August 2019 % change
*12-month rolling
Closed sales 1,383 1,167 21.9
Pending sales 1,598 1,048 52.4
New listings 1,362 1,284 6
Days on Market (DOM) 69 72 -3 days
Median sales price $273,500 $250,000 9.4
Months' supply 2.1 4.2 -50
Ico insights

INSIGHTS

SPONSORS' CONTENT
Mcwhorter 0005

The Coastal Corridor is Helping Wilmington Startups With Connected Devices for Life Sciences Industry

Heather McWhorter - UNCW Center for Innovation and Entrepreneurship
Web awstaffpic2020 1 132245438

The 2024 Luncheon for Literacy featuring Special Guest Jason Mott

Alesha Edison Westbrook - Cape Fear Literacy Council
Untitleddesign4

Paving the Way to Better City Streets

Tony Caudle - City of Wilmington

Trending News

Conservation Group Signs $8M Deal To Buy The Point On Topsail Island

Audrey Elsberry - Mar 26, 2024

National Organization Bestows Top Award On Cape Fear Professional Women In Building

Staff Reports - Mar 26, 2024

Engineering Firm Hires Four Employees

Staff Reports - Mar 26, 2024

N.C. Ports Officials React To Baltimore Bridge Collapse

Audrey Elsberry - Mar 26, 2024

NCino's Fourth-quarter Earnings Signal Rebound From Liquidity Crisis

Audrey Elsberry - Mar 27, 2024

In The Current Issue

Berries, A Battlefield And More In Pender

The N.C. Blueberry Festival, founded in 2003, is one of several events in Pender County that have drawn more attention over the years....


Park Progress

The planning for Pender Commerce Park began in the early 2000s when the county wanted to create an economic driver on its largely rural west...


Topsail-area Realtors Share Updates

Pender County Realtors recently shared updates about the coastal market at an event hosted by the Wilmington-Cape Fear Home Builders Associa...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2023 Power Breakfast: Major Developments