My Thoughts on the November 2008 Wilmington NC Residential Housing Report

Posted on January 19, 2009 by Walt Dowdy

I anticipated a drop in Home Sales in November 2008 for the Wilmington NC real estate market. But I was not prepared for how steep of a drop it would be.

As I mentioned in The Big Thing I am Watching Out for in 2009, I was glued to the news for the greater part of the 4th Quarter of 2008.

I knew the implications of the uncertainty that was growing in the consumers’ mindset. As they observed one bad news report after another, it created an increasing fear of spending that would show up in our local real estate market as it did throughout the nation.

And November’s Home Sales Numbers proved it!

Wilmington NC Home Sales

Overall, home sales in Wilmington were down 57% for November 2008 when compared to November 2007. November 2006 home sales were the first signal that our upward trend in home sales was over. November 2007 home sales were not significantly down from 2006.

But 2008 gave us a new low.

I personally believe (my opinion here) that November 2008 will be the record low and will signal the bottom in terms of home sales for our area. We’ll see if I am right!

Wilmington NC Average Sales Price

The Average Sales Price was down 6% when compared to the same time period of 2007. The fact that home sales dropped so steeply does not mean that home prices will fall the same way.

Most buyers I work with are a little bewildered by this. I must admit that I am too. But what I have learned is that seller motivation is what drives prices. And seller motivation varies from one home to the next.

At the same time, low home sales and high inventory levels are the hallmarks of a buyer’s market, and sellers who “have to” sell will have to come to terms with the market.

Future Blog Post Coming Soon: The Five Types of Motivated Sellers Who Have No Choice but to Sell

I have a post that I plan to write in the near future here on TheWilmingtonSearch.com where I will pinpoint the Five Types of Motivated Sellers who have no choice but to sell.

I do contend that if there was a critical mass with these sellers, a significant market-wide slide in home prices would take place. But for now, since I have tracked local housing market data for several years now, I do not see that critical mass forming for a huge slide in home prices.

Wilmington NC Days on The Market

The average amount of days a house sat on the market before it sold increased slightly by 9% from 105 days to 115 days.

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