Some good, healthy growth
Calling last year’s local housing market good would be an understatement.
Overall home sales in Guilford County increased 21.5 percent last year over 2004.
That’s possibly the greatest hike in the overall market in more than a decade, said Bernard Helm, who has been running a market research firm in Rocky Mount since the late 1980s.
Helm’s firm, Market Opportunity Research Enterprises, released a report Tuesday detailing the ups and downs of the housing market for the final quarter of 2005.
Those three months – October through December – saw overall market growth a little less than 13 percent. That’s not quite as good as 2005, as a whole, but it’s nothing to scoff at.
Helm said Tuesday’s report indicates that home purchases stood strong heading into 2006. Though he doesn’t expect this year to hit the banner mark 2005 did, he believes the market for homes locally will continue to climb.
“It’s just good, healthy growth,” he said. “Enjoy it.”
Sales of resale homes trounced those of new construction last year, as the difference between average prices for the two types of residences grew.
The average price of a new single-family dwelling in the county grew by about $19,200 between 2004 and 2005, while that of a single-family home on resale went up by a little less than $8,900.
Last year, Guilford County saw sales of more than 6,000 previously occupied homes, compared to about 3,500 new ones.
“When new home prices get ahead of resale, the consumer will begin to perceive more value in resale,” Helm said, adding that he expects the demand for resale homes to push their prices up in the coming year.
“That will not last forever,” he added. “But, for the moment, there is that upward pressure on prices.”
Yet new homes continue to go up.
Builders in the county were issued 3,036 permits last year, up 17 percent over 2004.
With all the housing going up in the area, particularly in eastern Guilford, it’s not strange to wonder who will be filling new homes.
Helm said the local market is healthy and can support this building growth. He pointed out that the increase in permits is in line with the overall growth of the market, so builders have reason to be optimistic.
And, two months into a new year, he doesn’t expect that optimism to slacken, despite rising interest rates.
The market research report also took on the Triad as a whole. Regional trends mirrored what’s been going on in Guilford County, with an emphasis on resale purchases over new construction.
Year over year, sales of older homes were up 18 percent, compared to 13 percent growth in sales of new units. Last year, buyers purchased 5,319 more resale homes than new ones.
Comments (1)
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that sounds interesting ,really glad to see the healthy growth and is a good indication 4 all.
Posted on March 15, 2006 4:56 PM