58.4 F
Wrightsville Beach
Thursday, March 28, 2024

Realtors, home builders report strong Wilmington housing and economic numbers

Must read

Wilmington’s housing market is improving, a report from the Wilmington Regional Association of Realtors (WRAR) and the Cape Fear Home Builders Association states, though stakeholders in the local housing industry noted that the local market still faced several challenges.

On Monday, April 11, WRAR released both the 2015-16 Cape Fear Area Housing & Economic Climate Report and March 2016 housing sales data. While housing units sold rose 22 percent from last year this March, other key indicators also helped boost the local housing market, including improved retail sales, a lower unemployment rate and higher home values, the report showed.

“Our real estate market is back,” said Cameron Moore, executive officer at Wilmington Cape Fear Home Builders. “Housing is strong and stable. It’s not sputtering, it’s leveling out. The market itself has a solid foundation.”

The report noted there were 218 more home sales in the first quarter of 2016 over 2015, a 15 percent increase, while the median house price rose 3.8 percent to $203,500 in the same quarter. And with 30-year fixed mortgages still under 4 percent, the second quarter would be “an extremely attractive time to purchase a home,” said WRAR President Don Harris. Additionally, the report noted the days that houses remain on the market continues to fall, now at an average of 112 days, the lowest in eight years.

Former University of North Carolina Wilmington economic professor Dr. Woody Hall, who collaborated on the report, noted the 5.5 percent unemployment rate was near what economists would call “full employment.”

With continued concern about housing affordability in the area, the report also noted that average home prices were within the range of the median household income. However, some participants in the roundtable discussion on the report questioned whether all factors had been accounted for. Student loans, homeowners fees, insurance and construction labor availability are some of the factors that make homes more expensive and are likely keeping renters in place longer.

“Are potential buyers just plain scared?” asked Craig Johnson of Herrington Homes.

David Spetrino, president of Plantation Building Corp, said the report could be a valuable tool to help grow the housing market and keep potential buyers informed about the strength of the market.

“There’s no doubt about it, we have a healthy housing market,” Spetrino said. “We have to protect it, to nurture it, to treat it appropriately.”

Homebuilders and Realtors said the data would be helpful to sellers but also to buyers who want to know what the home data means and avoid getting caught in another housing bubble that damages the economy.

“This should help us make better decisions going forward,” said Heath Clark, president of the Wilmington Cape Fear Home Builders’ board. “We don’t want to make the same mistakes from the past and any additional information helps.”

email [email protected]

- Advertisement -spot_img

More articles

- Advertisement -spot_img

Latest articles