Johnston County NC Housing Market Report July 2023

The housing market in Johnston County, North Carolina continued to experience shifts in July 2023. While certain key indicators showed declines compared to the previous year, signs of stabilization emerged in other areas. Let's delve into the details of the housing performance for July 2023. The information is taken from the Triangle MLS database which covers primarily the Piedmont area of the state.

New Listings and Closed Sales

In July 2023, there were 398 new listings, representing a significant decrease of 27.0% compared to the 545 new listings in July 2022. Closed sales also declined by 17.6%, with 361 properties sold in July 2023 compared to 438 in the same month the previous year. These decreases could be attributed to various factors, including recent conditions and economic factors....

New Listings:

The significant decline of 27.0% in new listings from July 2022 to July 2023 suggests a notable shift in market dynamics. This drop in new listings could be influenced by several factors:

1. Seasonality: Real estate does often experience seasonal fluctuations, with fewer new listings during the summer months. Families with children may prefer to move during the summer to minimize disruption to the school year.

2. Economic Conditions: Economic factors, such as job growth and local economic stability, can impact homeowners' decisions to list their properties. A slowdown in these factors may lead to a reduction in new listings.

3. Supply Constraints: Limited land availability or constraints in the construction industry can also contribute to fewer new listings. Builders may face challenges in meeting the demand for new homes.

4. Seller Confidence: The decisions of potential sellers can be influenced by their confidence in achieving desired selling prices. If sellers believe they cannot obtain favorable prices due to current conditions, they may delay listing their properties.

Closed Sales:

The 17.6% decrease in closed sales from July 2022 to July 2023 indicates that fewer homes were successfully sold during this period. Several factors could explain this decline:

1. Supply and Demand Dynamics: A reduction in new listings often translates to fewer available properties for buyers to purchase. This decreased supply can lead to lower closed sales.

2. Rising Prices: If median and average home prices have increased, as indicated in the data, this may have made homes less affordable for some potential buyers, contributing to a decrease in closed sales.

3. Buyer Behavior: Buyer behavior can be influenced by economic factors, job opportunities, and mortgage interest rates. A shift in any of these factors can affect the number of homes sold.

4. Competition: In a competitive situation buyers may face bidding wars or have difficulty securing properties. This competition can lead to fewer closed sales as some buyers may be discouraged by these challenges.

It's important to note that fluctuations in new listings and closed sales are typical in real estate and can be influenced by various factors. While the data indicates a decline in closed sales, it's essential to consider the broader context, including pricing trends, housing levels, and consumer sentiment, to fully understand the dynamics at play in the Johnston County housing market for July 2023. Buyers and sellers should stay informed about these trends and work with real estate professionals to navigate the process effectively. A couple of factors of importance in price per square foot and pending sales, which we can explain in detail, just shoot us a text or call 919-601-2268 or email us at [email protected].

Median and Average House Sales Prices

The median price for homes in Johnston County remained relatively stable, with a slight decline of 1.3% from $380,000 in July 2022 to $374,900 in July 2023. However, the average sales price saw a modest increase of 0.4%, rising from $391,106 in 2022 to $392,531 in 2023. These figures indicate a relatively balanced market.

Total Dollar Volume and Price Negotiation: The total dollar volume of real estate transactions in Johnston County for July 2023 amounted to $141.7 million, marking a noticeable decrease of 17.3% compared to $171.3 million in July 2022. Sellers received, on average, 98.3% of their original list price, reflecting a decrease of 2.7% from the 101.0% received in the same month the previous year. Similarly, the percentage of list price received was 99.6% in July 2023, down by 1.7% from July 2022.

Days on Market and Inventory Supply In Johnston County NC July 2023

The DOM until sale saw a substantial increase of 125.0%, with homes spending an average of 27 days on the market in July 2023 compared to just 12 days in July 2022. The housing affordability index declined by 10.5%, standing at 77 in July 2023 compared to 86 in July 2022. The inventory of homes for sale decreased by 11.0%, with 737 homes available for purchase in July 2023 compared to 828 in the same month the previous year. The months supply increased by 16.7%, reaching 2.1 months in July 2023, up from 1.8 months in July 2022.

The substantial increase of 125.0% in "Days on Market" (DOM) from July 2022 to July 2023 is a noteworthy shift. DOM represents the average number of days it takes for a property to sell once it's listed. Several factors contribute to this significant change:

1. Increased Competition: A surge in new listings combined with a decline in closed sales can lead to increased competition among sellers. With more properties available, buyers have more options to choose from, potentially leading to longer DOM.

2. Pricing Realism: Sellers may initially list their properties at higher prices, reflecting the trend of rising home prices. However, as properties remain on the market for longer periods, sellers may adjust their pricing expectations to attract buyers.

3. Changing Buyer Behavior: Buyers may take more time to make decisions as they assess the increasing options available to them. This change in buyer behavior can contribute to longer DOM.

4. Economic Conditions: Economic factors, such as mortgage interest rates and job stability, can influence buyer demand and their urgency to make purchases. An increase in DOM may reflect a more cautious or selective buyer pool.

5. Property Condition: Properties that require renovations or updates may take longer to sell, especially if buyers are looking for move-in-ready homes.

Inventory:

The 11.0% decrease from July 2022 to July 2023, combined with the increase in months supply of homes for sale in Johnston County reveals a changing supply landscape. Inventory represents the number of homes available for sale at a given time, while months supply of inventory indicates how long it would take to sell all available homes at the current sales pace. Several factors contribute to these changes:

1. Supply Constraints: Limited land availability, zoning regulations, and construction challenges can restrict the number of new homes entering the market, leading to reduced inventory.

2. Demand vs. Supply: A decline in homes for sale may be driven by strong demand outpacing supply. If more buyers are entering the market than there are available homes, this can lead to a seller's market.

3. Market Dynamics: Market conditions can influence sellers' decisions to list their properties. In a seller's market with rising prices, some homeowners may choose to hold onto their properties, reducing the number of listings.

4. Seasonal Factors: Real estate markets often experience seasonal fluctuations, with inventory typically decreasing during the summer months. Families may prefer to move during the summer, leading to increased buyer demand.

5. Affordability Challenges: As median and average home prices increase, some potential sellers may find it challenging to move up in the market or afford a new home, leading to reduced inventory.

Understanding the dynamics of DOM and availability is crucial for both buyers and sellers. Longer DOM can affect pricing strategies, and reduced inventory can lead to increased competition among buyers. Real estate professionals can provide valuable insights and guidance in navigating these market trends to make informed decisions.

Conclusion: In conclusion, the housing market in Johnston County, NC, for July 2023, exhibited a mixed performance compared to the same month in 2022. While new listings and closed sales experienced significant declines, indicating a somewhat subdued market, median sales prices remained relatively stable. The average sales price showed a modest increase, reflecting a potential shift in buyer preferences.

Sellers received slightly less of their asking price compared to the previous year, suggesting a market that is becoming more balanced between buyers and sellers. However, the increased days on market and a reduced housing affordability index indicate evolving market conditions that may require buyers and sellers to adjust their strategies accordingly.

The decline in inventory and the increase in months supply of inventory signal the need for continued monitoring of the market's evolution. As the housing market in Johnston County adapts to changing conditions, both buyers and sellers should work closely with real estate professionals to make informed decisions in this dynamic environment.

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This post was written 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]