Cary NC Real Estate Blog: 2012 Cary Luxury Home Market Conditions

Its' that time of year when we reflect on the real estate market in Cary and look ahead to the new year.  One of the markets I follow closely is the Cary Luxury Home Market Segment.

I recently received my Certified Luxury Home Marketing Specialist Designation(CLHMS) and as a part of the process I had to verify the price point for my sales in the Top 10% of the Cary market.  In the Cary market homes sold above $550k qualify as luxury homes.  Our local market specialist/appraiser, Stacey Anfindsen, defines the Luxury Home Segment as homes for sale over $500k. For this analysis I've included homes priced $700k and above because I think that provides a better picture of the true Cary Luxury Homes Market.

The luxury home market in Cary is improving and several neighborhoods shows continued signs of recovery.  Through 2011 there was even improvement in terms of contract pending and sales of housing priced at 1 million and up. The inventory decline outpaced the sales decline and the result was a drop in the supply. The current months of supply is the lowest level since 2007 and is a return to the historical norm for the segment.  The lowest supply based on 2011 closings is found in Cary/Morrisville/Apex closings were at the highest level since 2003. 

For the sake of this analysis I'm going to break down the homes into four price points:

• $700,000-$800,000
• $800,000-$1M
• $1M-$2M+ and
• $2M

All figures are bases on numbers pulled today January 29, 2012 for all of 2011 and are from the Triangle MLS:

Here are a few observations that relate back to my comments above:

·         At $174/square foot Cary's Luxury homes are less expensive than homes in other popular Luxury Home communities in the Triangle

·         I ran the same analysis in 2008 and the Average Price/Square Foot in Cary was $198 so prices in this segment have dropped

·         Of the 52 Homes that have sold above $700k YTD 28 of them were new construction down from 37 last year

·         Home sales in Preston, Cary's Country Club community, were up 17% in 2011

·         Top Selling Cary Luxury Home neighborhoods include Preston with 11 Sales & Copperleaf with 17 Sales above $700k

·         New construction neighborhoods selling include Copperleaf and Rennaisance at Regency

·         Homes in the 2M+ range are found in Chapel Hill, Wake Forest, and Raleigh but fewer in Cary

·         Lending restrictions have had a significant influence on the $700k-$800k price point. Sales in 2011 are off by 43% compared to 2008

·         A decrease in new homes for sale and sellers that have not sold taking their homes off of the market has influenced the inventory in the Triangle Luxury HomeSegment

If you have any questions regarding this report or would like more information on the Cary Luxury Home Market please feel free to email me or visit Tracy Santrock's website for more information.