If you are a Realtor in Raleigh you've likely had to ditch the dress shoes and strap on some jogging sneaks because local real estate activity has kept us on the run.
Raleigh had a case of the Multiple Offer Mays!
What's surprising me now is the fact that homes that are well-priced and well-presented are moving SO quickly, in an otherwise volatile landscape of pandemic recovery and global anti-racism movements. Multiple offers hit within a matter of days. As frustrating as this is for Buyers who have been patiently waiting for new homes to hit the tape, it's quite the boon for many lucky Sellers.
Which brings me to...my favorite stat of the month.
The Days on Market Count (or DOM):
Across all price points of detached, single-family homes in ITB Raleigh* average DOM dropped 50% versus this time last year. Literally cut in HALF.
The speediest of the sub-buckets was found in the $850K-$1M category, followed by the $1M-$1.5M category. Relocation to Raleigh and opportunistic locals who see some Sellers fearing the worst and initiating price cuts are scooping up beautiful properties without hesitation. Although we have the least amount of supply vs demand in the sub $850K market, there is interesting momentum in the luxury market...and it looks like a beast!
* ITB Raleigh = "In the Beltline", which refers to the popular communities located inside the I-440, when you look at the map.
If you're tracking Months of Supply and Absorption Rate, see below for our May 2020 numbers for ITB detached, single-family homes:
Please don't mind that odd addition I'm going to continue to report, which we can dub "Action Rate" because I really feel like it's a more precise view of buyer activity since it represents Buyer Impulses (going under contract) vs Closing Activity, which can be influenced by other timelines (Lender, Closing Attorney, Inspections, Repairs, Movers, etc).
In Raleigh we don't see contingent offers. Elongated closings are the exception, not the rule. Savvy Sellers realize there are risks in waiting out a 90 day close or allowing Buyer possession before closing. The bulk of our client activity falls into the 30-45 day closing window, unless we are working with new construction. So I think this Action Rate could be something fun to watch over time and see how it correlates to other data we follow.
The Raleigh Edit has one last story to share for this posting...because the impact of Covid-19 is really fascinating and too curious to ignore.
Once upon a time (a few weeks ago), there was a home in Raleigh which was prepping for sale. After a 600-input hand-adjusted CMA (it's a love/hate relationship) helped reveal a probable selling price for the property, there was still something to debate. While discussions were had with the Seller regarding this range, there were unusual market forces at play that historical numbers wouldn't capture. Let's call these Covid Multipliers. Seller decided to list higher than the range in light of these unknown Multipliers.
What happened next, you might ask?
Well, well, well...the home generated significant interest in a matter of 2-3 days. Multiple offers resulted in a sales price which the Seller was quite pleased about.
Was it simply the lack of inventory? Location alone? Condition of the home? Low interest rates and on-book lending for Jumbos? School mapping to an otherwise capped and notable public school?
It's hard to say with much certainty since we only have access to feedback that is openly shared. But I believe these mysterious Covid Multipliers impact the market in a big way somewhat unpredictably.
Buyers seem to be making decisions with emotions that have been exhausted by the wild ride of these past few months. So the home that will feel like HOME has got to provide a solution to the wary bits of life they've just recently experienced.
The antidote might look something like this:
Rather than full seclusion, buyers are craving activity within a small community around their home (social bubbles)...so maybe it's time to clip that tall hedge down a bit.
A lushly landscaped yard will woo Buyers of all types to soothe tech-weary eyes. Extra points to one that offers built-in recreation with a glamorous pool, basketball-friendly driveway, or swings draped from trees.
Large, older homes (larger lots) that have been well-maintained and immaculately cleaned are selling before smaller, newer homes (smaller lots) because space screams serenity in our minds, as our worlds have gotten temporarily smaller in response to global events. Newer isn't always better.
Buyers seem more comfortable spending more time in vacant listings, so watch those get scooped up first. Provide evidence of your sensitivity to health concerns to advance your listing if your home is occupied.
Shoes off in the home- a simple request- make Buyers feel more at ease and often soften to the idea of the space, connecting emotionally and comfortably to the way the home makes them feel...so go ahead and dare to bare.
Give Buyers a vision of the Man Cave, She Shanctuary, Kid Kraft Korner, or some space to customize as their own. Open floor plans have their limits.
Declutter the mind with hiding places to keep sight lines clean. Think scullery/pantry combos that allow the uptick in our home cooking to conceal the efforts from plain view or a walk-in-closet with a club chair or two in which to take refuge. Form and function leads to good design.
And lastly, it should come without much surprise, the home office is in high demand. Rather than the more traditional foyer-based space, Buyers seek a space that is away from the hub of the home. All the better to have a dedicated Zoom room, as it's bound to be used by every member of the home!
LASTLY...
Take a peak at a historic beauty that just went live today, for some home inspiration.
Trust me, she checks all the boxes.
$1,099,000
5bd/6ba
5300+ sq. ft.
Until next month...
Maggie
The Raleigh Edit
Commentaires