Covid crazy? Quarantine queasy? Or....happy at home?
Just checking in on all of you whom have been curious about this little blogspot, The Raleigh Edit. How are you feeling in this EDITED world of ours?
While change can be energizing, upsetting - or - one of a gajillion other emotions, depending on where and how you live, the work you do, and the people you care about most in this world...I am personally SO encouraged by the way we, as a global community, have rapidly adapted our habits to protect those whom are most vulnerable among us.
I've been quiet from the sidelines for a stretch since real estate work has kept me hopping. It's a profession I adore and it's become my full-time obsession. So let's saddle up and have a hard chat, because it's time to introduce you to a few of my other friends.
There are many incredible resources for insights about the buzz in Raleigh, including:
SO as much as I dislike parting ways with my initial vision for this site, it makes more sense to direct The Raleigh Edit fans to these specialized online resources which are staffed up and dedicated to the task of discovery around town each and every day. They are a talented and wonderful group of locals who love the city as much as I do. You will be in very good hands, I promise.
HOWEVER...don't completely give up on me yet!
I'm still here for you. Safely. From a distance...with well-sudsed hands.
I'd love to be here for you as a resource for all things house and home! It's what I live and breathe every day...trust me, this is better for you AND for me. We can still find a way to sneak in some of the fun and the fancy while we cover the news as it will be impossible to be "all work and no play".
Plus, you can always reach me via this new handy dandy chat tool with questions about relocation and recommendations. Done and done.
So let's talk shop.
Working in an "essential service" industry, not only do I get to get dressed (!)...on most days I'm armed with masks and gloves and a bucket of sanitizer to serve some special buyers and sellers during this very unusual time.
Many of you own a home or are considering owning a home, so this type of news is important to follow, if only for your peace of mind. Rest easy...easier, please...because the landscape is not as grim as you might fear!
Here goes...
Personally, I believe that we see a shift and some loosening up in the market in the next 2-3 weeks as the weather continues to improve and sideline buyers and sellers get cabin fever beaucoup and take on respectful, incremental risks to advance whatever their real estate goals had been pre- Covid.
The good thing is that while we have 1/4 of the typical inventory on market, the valuations versus last year are up anywhere from 6- 8%. A large driver of that stat comes from the more affordable segment of the market, which means less of an appreciation hitting the luxury market. BUT it's still encouraging when we think about how much buffer we can withstand in terms of any potential softening in valuations. Low inventory and pent-up demand still outpace the influences towards a Buyer's Market in the mid-future, in my opinion.
Only time will tell. So we shall see.
I will say that many homes that would normally get scooped up in a matter of days are still sitting, available. So the buyers appear to be lagging the sellers from what I'm seeing. Vacant homes are getting some attention...although less activity is seen in occupied homes, as most brokers are encouraging more virtual interactions if possible.
But we have plenty of tech at our disposal to truly take the entire home-hunting process electronically, from start to finish, if you wish!
In Raleigh, 1 out of every 10 buyers are in the market for million dollar homes and 1 out of nearly 20 are looking at price points above $1.5M.
Depending on where you have lived in the past, these numbers are wildly encouraging OR depressingly discouraging based on how far you see the ole wallet stretching for a place to nest in town!
Year over year, this month's inventory dropped 20% and closed sales dropped 32% in the $1M+ market. I like looking at activity from the moment decisions are made and homes go under contract (versus just comparing SOLD data from the date a transaction CLOSES and ownership changes hands). Using that lens we see the greatest impact, which I do believe is temporary, decreasing 60% year over year. May is already rapidly outpacing April, so just breathe. We are on the rise.
Absorption Rates show us a thing or two about supply and demand, while Months of Supply can show us which way we are trending in the market, when tracked.
Strictly looking ITB, we have:
1.5 months of supply in the market for homes up to $850k
4.5 months of supply in the market for homes $850k - $1M
4.8 months of supply in the market for homes $1M- $1.5M
8.9 months of supply in the market for homes $1.5M +
A "6 months of supply" benchmark is widely looked at as the level needed for a balanced market, so by many measures we are still looking at thin inventory choices and a continuing Seller's Market.
All of this data changes by the day and will certainly be impacted by health, employment, macro economics, and more. But hopefully you see that our market is still moving and we are at work for you.
That's all for now.
Until our next update, stay HAPPY and HEALTHY at HOME.
... Maggie
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