Tightening inventory and declining distressed sales both have contributed to asking prices and sales prices rising in Forsyth County.
The lower inventory is driving buyer demand, especially for properties with updated features and finishes.
Despite some communities still dealing with the occasional short sale or foreclosure; the county as a whole is doing well.
February sales data is in and the number of single-family homes sold this February jumped 49 percent compared to February 2012.
The average sales price for those homes leapt from $240,063 to $264,960. A whopping 10 percent increase over a year ago.
Although prices are showing strong gains, we still have a way to go before we return to peak-level values.
A comparison of home values in Forsyth County to their near peak levels shows prices are still down approximately 20 percent from their highs.
New construction inventories are positioned to climb over the coming summer which may prove to be a release valve for the low inventory and give re-sellers more competition. However, there are a couple of reasons why I think buyer demand is likely to remain strong.
First, companies are moving more people; the number of relocation buyers is increasing. Secondly, we will see the “boomerang” buyers. Those buyers who lost their home in a short sale or foreclosure during the housing bust. Those buyers will be re-entering the market, anxious to return to home ownership.