Johnston County NC Housing Market Report August 2023
Johnston County NC Housing Market Report August 2023
New Listings and Closed Sales Housing Market Report
New Listings: In August 2023, Johnston County witnessed a substantial 21.8% decrease in new listings compared to the same month in 2022. The county recorded 444 new property listings in August 2023, down from the 568 new listings in August 2022. This decline suggests a notable shift in the supply side of the real estate market. Several factors could contribute to this decrease however many current homeowners have interest rates in the 3's and 4's and have no desire to change that for a 7% interest rate. One possibility is that potential sellers may be holding off on listing their properties, possibly due to uncertainty in the market, changes in personal circumstances, or the perception of market conditions. Additionally, a shortage of available properties might be influencing sellers' decisions, as they may be concerned about finding a new home themselves in a competitive market.
Closed Sales: Closed sales in Johnston County experienced a more substantial decline in August 2023, down by 24.7% since last year compared to the same month in 2022. In August 2023, there were 387 closed sales, whereas there were 514 closed sales in August 2022. This decline in closed sales could be attributed to several factors. It may indicate a shift in buyer behavior, with potential buyers being more cautious or discerning in their choices. Rising home prices and competition among buyers could be influencing this trend, making it more challenging for some buyers to secure a property. Additionally, the decrease in new listings may have limited the number of available homes for buyers to purchase, contributing to a decline in closed sales.
These market trends in new listings and closed sales are essential indicators of the dynamics of the Johnston County real estate market and throughout the eintire Triangle MLS. A decrease in new listings can affect the overall inventory of homes available for sale, potentially contributing to rising prices and competition among buyers. Meanwhile, a decline in closed sales might indicate that buyers are taking more time to make decisions or that they are facing challenges in finding suitable properties.
Median and Average Sales Prices
Median Sales Price: In August 2023, the median asking price for homes in Johnston County was $369,890. This figure represents a slight decrease of 0.3% compared to the median sales price of $370,950 in August 2022. The median price is the middle point of all the home sale prices in the area, which means that half of the homes sold for a price below $369,890, and the other half sold for a price above this figure. The marginal decline in the median sales price suggests relative stability in home values over the past year, with only a minor adjustment.
Average Sales Price: The average sales price in Johnston County for August 2023 was $389,558, showing a modest increase of 1.8% compared to the average sales price of $382,487 in August 2022. Unlike the median sales price, which represents the middle point of all sales, the average sales price is the total sales volume divided by the number of homes sold. This figure is influenced by high-end luxury properties, so a rise in the average sales price indicates that some homes in the higher price ranges may have sold during the month.
The stability in the median sales price and the modest increase in the average sales price suggest that the real estate market in Johnston County has seen relatively steady home values with a slight upward trend in higher-priced properties. However if you look at the increase from January when the median sales price was $350,000 that is quite a difference. This stability is generally positive for both buyers and sellers, as it signifies a balanced market with reasonable pricing. However, it's essential to note that real estate markets can vary by location and property type, so individual neighborhoods within Johnston County may have different trends.
Buyers and sellers should consult with local real estate professionals who can provide detailed insights into specific neighborhoods and property types to make informed decisions in this evolving market. The housing market has a lot of data relating to real estate for sale and 2023 compared to previous years is somewhat different. As always you'll want to consider data such as price per square foot, days on the market, median home sold price etc.
Days on Market and Affordability
Days on Market (DOM): In August 2023, the average number of days on market until sale increased to 20 days, marking a 25.0% rise compared to the average of 16 days in August 2022. The "Days on Market" metric represents the average number of days it takes for a property to go from being listed to being sold and closed. An increase in DOM indicates that homes are taking longer to sell. There are several factors that can contribute to a longer DOM, including changes in buyer behavior, pricing dynamics, or market conditions. A longer DOM might provide buyers with more time to make decisions and conduct due diligence, but it can also signal a shift towards a more balanced market where sellers may need to be patient.
Housing Affordability: The Housing Affordability Index in Johnston County decreased by 15.6% in August 2023, from 90 to 76, compared to the same month in the previous year. The Housing Affordability Index is a measure of how affordable housing is for the average household in a given area. A lower index value suggests a decrease in housing affordability. This can occur due to factors like rising home prices, increasing interest rates, or changes in household incomes. A decline in affordability may impact the ability of some potential buyers to enter the market or purchase homes within their budget.
The increase in "Days on Market" and the decrease in housing affordability suggest evolving market conditions in Johnston County. A longer time on the market may indicate a shift towards a more balanced market where buyers have more choices and time to make decisions. However, the decrease in affordability could pose challenges for some buyers, especially those with limited budgets. It's important for both buyers and sellers to stay informed about these metrics and work closely with real estate professionals who can provide guidance tailored to their specific needs and goals in this changing market landscape.
Johnston County Inventory and Housing Supply
Inventory of Homes for Sale: In August 2023, Johnston County had 755 homes available for sale. This figure represents a 20.4% decrease compared to the same month in 2022 when there were 948 homes on the market. The inventory of homes for sale is a crucial metric that reflects the number of properties currently available to potential buyers. A decrease in inventory can impact the overall housing market dynamics. Several factors can contribute to a decrease in inventory, including strong buyer demand, low housing supply, or homeowners choosing to hold off on selling due to various reasons. A reduced inventory can lead to increased competition among buyers, potentially affecting home prices.
Months Supply of Inventory: The months supply of inventory in Johnston County decreased slightly from 2.2 months in August 2022 to 2.1 months in August 2023. This metric measures how long it would take to sell the existing inventory of homes at the current sales pace. A lower months supply suggests a tighter market with a higher demand for homes relative to supply. A balanced market typically has a months supply of around 6 months, so a figure of 2.1 months indicates a seller's market. In such a market, sellers may have the advantage, but buyers may face increased competition and potentially rising prices.
The decrease in inventory and the slightly lower months supply of inventory indicate that Johnston County continues to experience a market where demand for homes outpaces supply. This can lead to a competitive environment for buyers and may influence pricing dynamics. It's crucial for both buyers and sellers to stay informed about these metrics and work closely with real estate professionals who can provide tailored advice based on local market conditions and individual goals.
In summary, the Johnston County housing market in August 2023 experienced a decrease in new listings and closed sales compared to the previous year. Home prices remained relatively stable, with a minor decline in the median sales price and a modest increase in the average sales price. Price negotiation indicators and days on market showed some changes, potentially indicating evolving market dynamics. The inventory decreased, and the months supply remained tight, suggesting continued competition among buyers. It's important to note that real estate market conditions can fluctuate, and multiple factors may influence these trends. Buyers and sellers should stay informed and seek the guidance of real estate professionals when making decisions in this dynamic market.
How is the Housing Market doing in North Carolina?
The housing market in North Carolina is primarily similar throughout the state with obvious differences for location, population, amenities etc. The major centers of population, such as Raleigh, Charlotte and Greensboro are struggling with a lack of inventory and higher interest rates at this time. But there is a lot of pent up demand of buyers who want to relocate to NC.
Are North Carolina home prices dropping?
North Carolina home prices have remained relatively stable and for the most part have increased month over month since the beginning of the year 2023.
How do I find Johnston County, NC real estate records?
The Johnston County Register of Deeds in Smithfield is where all real estate records are kept. You can speak to the staff in person or by phone and here is a link to the Register of Deeds Website.
This post is brought to you by David O'Doherty, a licensed real estate agent since 2007 helping buyers and sellers in Clayton, NC and the Greater Triangle Area of North Carolina. He is committed to providing his clients with exceptional service and personalized attention throughout every step of the real estate process. If you're looking to buy or sell a property in Clayton, NC, or the surrounding areas or have any questions about the local real estate market, don't hesitate to contact David O'Doherty today. Call or Text (919) 601-2268 or email [email protected]