It’s always hard to identify the real estate best deals with a great deal of precision. But as a general rule, the best deals are usually found in market segments with a significant oversupply. There are currently four (4) segments of the Pinehurst MLS with a clear oversupply of properties for sale.
Homes over $500,000 – There are currently 289 homes for sale in this category in the Pinehurst area MLS. During the 4 years from Jan. 1, 2006 to Dec. 31, 2009, there were 370 sales of homes at $500,000 and up. In the 3rd Quarter of 2010, there were only 13 sales over $500,000. Essentially, that means there is almost a 4 year supply of homes over $500,000. A normal inventory in this category would consist of about 50 homes. Consequently, there is a drastic oversupply of homes over $500,000. Because of the oversupply, some sellers of homes over $500 are starting to reduce prices in order to sell. View All Homes $500k & Up
Homes Needing Updating/Renovation – It is difficult to say how many homes in inventory fall into this category. Our evidence in this category comes from relentless feedback from buyers after visiting homes that need work; and there is no objective way to make a measurement. However, suffice it to say that buyers are looking at property with a very critical eye in this market. Buyers are more reluctant than ever to “take on a project” by buying an outdated house. But if you get a good enough deal, renovation projects can be rewarding and profitable – especially if you like to roll up your own sleeves!
Horse Farms – There are currently 48 horse farms on the market compared to 59 at the end of Q2. There is still an oversupply as addressed in our Q2 update, but prices have fallen sharply and there were 5 horse farm sales in Q3 and at least one foreclosure. During the 4 years from Jan. 1, 2006 to Dec. 31, 2009, there were 80 horse farm sales in our market. In a normal market, we would see the number on the market roughly equal to the number sold in the previous 12 months. In other words, a 1 year supply is normal for horse farms. Currently, there is about a 3 ½ year supply. View All Horse Farms
Condos – There are 250 Condos/Townhomes on the market. In 2009, there were only 115 sales. In a normal year, we see over 200 sales. But this is not a normal year. With better deals available on Single Family Homes, the condo market has suffered a bit. There are great deals on condos at the moment – and many of the units come furnished and ready to use! Take the Pinehurst Condo Tour also View All Pinehurst Condos
Buying a Lot (or Land) & Building a New Home
Economic forces have made every business more efficient – and that includes homebuilders. At the same time, there is less demand for the services of homebuilders. These two factors have resulted in lower costs when it comes to building a new home. Construction loans are harder to come by these days, but if you have perfect credit or you plan to build without getting a loan, this can be a great alternative. See available Building Lots
Also see...
Search the Pinehurst MLS
Pinehurst Real Estate Virtual Tour
|
