The Difference Between The Crystal Coast MLS and the Neuse River MLS

By: Bill Hitchcock
http://www.hitchcockrealty.net

It is very interesting to compare the differences between the Crystal Coast MLS and the Neuse River MLS. The activity within these abutting Realtor systems can be radically different from each other.

The first and most obvious difference is price. The year to date average sold price in the Crystal Coast MLS is $279K for a residential property. The Neuse River MLS average sold price is $213K, slightly up from what it has been.

Although year to date sales are consistently off for both systems (down 25% for the Crystal Coast and down 31% for the Neuse) inventory and the amount there of is what distinguishes the two. The Crystal Coast system has double the inventory of the Neuse in terms of actual numbers of residential properties for sale. But due to the rate of sales, the Crystal Coast system has almost three times the supply of inventory.

It’s called the absorption rate. If you take the rate in which inventory comes on the market for sale and then factor in the rate in which inventory goes off the market as sold, you then can determine how long it would take to sell off all of the inventory (the supply) at any given point in time.

In a normal, stable market it takes about 6 months to sell off the entire inventory. That’s why listing agreements are usually for 6 months. But the absorption rate right now for the Neuse River MLS is at 13 months and the Crystal Coast is at a whopping 32 month supply.

Wow, simply-Wow!

Days on market for unsold inventory is averaging 176 days for the Neuse River MLS and 211 for the Crystal Coast.

One thing that has been consistent for both systems and interesting to track has been how these properties have been purchased. Both the Neuse and the Crystal Coast have been seeing approximately 45-50% of their sales financed with a conventional loan and around 20-25% with a VA Loan. What has been most interesting is to see the amount of cash sales of late. On an annual basis about 12-14% of all purchases of residential properties in both systems are cash. This spring has seen months where the cash purchases have been almost double that. Up to 24% of the homes bought have been cash during some 30 day periods.

Again Wow, simply-Wow!

Now is a fantastic time to buy real estate. In my opinion-It is one of the best times to buy in many years. I realize that the national news media would lead you to think otherwise. But keep in mind-Almost all real estate is presented from the sellers prospective-Not the buyers. A sellers market sees escalating prices and diminishing inventory. A buyer’s market sees choice inflating and purchase price deflating.

In 2005 we had the all time best sellers market. Right now is one of the best buyer markets.