All Real Estate is Local: 3rd Quarter Market Report for Catawba Valley

The national news media is still telling everyone that the “National” housing market is shambles, housing values are declining by 20-50% of previous values and still falling and on and on.  The real truth to this is that there is really no such thing as a “National” housing market.  Real estate is, and has always been, intensely local in nature.  While the “National” housing market may be experiencing a major decline, according to the press, there are several markets that are holding pretty steady or even climbing during this “time of crisis” that the news media love to report about.

Which brings us to the market report for the Catawba Valley MLS area (Hickory, NC and surrounding areas).  First, I based this report only on single family home sales, that is only stick-built homes, condos and townhomes included.  That leaves out all commerical, all raw land sales, and all homes that are modular or mobile in construction.  The data was pulled on 10/20/08.

Home values for Catawba County has held basically steady from 2007 to 2008.  The average sold price in 2007 for a home in Catawba County was $171,293.  The average sale price in 2008 currently is $170,769, a difference of only $524, or basically, no change.  The average days on market (DOM) in 2007 was 136.  For 2008, it’s only 147.  Again, basically, no change.  What has changed somewhat is the percentage of sold vs. listed property.  In 2007, roughly 60% of what was listed sold.  Currently in 2008, only about 49% of what has been listed as sold.  All in all, Catawba County is holding steady.

Alexander county has suffered some loss, though.  The average sold price in 2007 for the county was $185,248 compared to 2008 average sale price of $175,408 or approximately a $10,000 loss (5% drop in value).  DOM increased from 136 to 170, or about an extra month.  Percentage of homes sold dropped from about 55% sold in 2007 to 46% sold in 2008 currently.  Please note that Alexander county is serviced both by the Catawba Valley MLS and the Charlotte MLS and other MLSes as well and this may or may not be an accurate sampling.

Caldwell county has suffered the worst in our area, probably because of the high number of factory/furniture closings in the past few years that were based there, which has, in turn, created a higher than average number of foreclosures for the county (though recent business developments have the economic/job outlook for the county looking pretty good).  The average sold price in Caldwell county for 2007 was $137,326.  It is down to $126,819 in 2008, a difference of $10,507 or about a 7.6% drop in value from year to year.  The average DOM is about the same 129, 128, respectively.  Percentage of sold to listed remains consistent with about 57% sold in 2007 to only 48% sold in 2008 currently.

In all areas, sellers are still getting approximately 96-97% of their asking price (list price compared to sold price).

So what does all this mean to you?  As a buyer, it’s good to know the market.  With these numbers, it’s clear that there should be a number of homes on the market for you to choose from, but now you know that, even though it’s a buyer’s market, you cannot routinely get lowball offers accepted.  Sellers are still getting what they are asking for, it’s just taking a little longer.  For a seller, you know that it may take a little longer to sell your property.  You also know that your property needs to be in the best show shape that it can be because there are more properties out there.

If you would like to learn more about the market or are interested in buying or selling, you can visit me at www.RogerAJohnson.com or call 828-568-2121 ext 310.