Real Estate: Q3 2015 Real estate is hot, but don’t get greedy

November 2015

By Brian Pate, Keller Williams Realty

As we look back on 2015 so far, it has been a good year for Rolesville real estate. Although there is slightly less activity, we are seeing an average price increase, which is a good sign as we look to the fourth quarter of the year.

If we look at the third-quarter stand-alone stats, we find that 51 homes were sold from July 1, 2015, through Sept. 30, 2015. That is a difference of only seven homes, equating to a 14 percent decrease in activity compared to the same period in 2014. That looks like a negative until you see that the average time on the market is only 70 days, down from 147 in December 2014! Additionally, the average sale price in Rolesville this quarter was $346,714.

In comparing those quarterly numbers with our year-to-date numbers, we reveal two solid trends:

1)       The average sale price in Rolesville from 2014 to 2015 is up 3 percent year over year from Jan. 1 to Sept. 1. A 3 percent appreciation rate for the current year to date is emboldened by a 9 percent appreciation from 2013. In other words, that is averaging out to a 6 percent annual appreciation rate over the past two years from where we were in the mid 1990s and early 2002-2004. If that appreciation rate can be continued, homeowners will be much more confident and begin to build up equity in the home.

2)       The average days on the market has gone down from 147 days in December 2014 to 104 days year to date in 2015. That is a 35 percent decrease in the number of days on the market. Not to mention that over the third quarter, it was only 70 days for closed properties.

One might ask, “What does this mean to me?” It is simple. If you are looking to sell, the low inventory combined with a higher average price point means that if your home is priced competitively and in good condition, then it will likely sell very quickly.

However, if we look upon the horizon, we are certainly beginning to see a shift in the market. With 85 homes currently on the market and an average of 17 homes selling each month, the supply has risen to five months. Most people would see that as a negative, yet in reality, that is a very stable market. It is not a buyer’s market or a seller’s market. It is a balanced market.

That is why getting greedy with your price or putting your house on the market even though there is deferred maintenance that hasn’t been completed can be dangerous and cost you precious time on the market.

It is still a very simple formula for selling a home. The right list price on a house in good condition will create enough interest to sell in less than 30 days. If the home is not getting more than two showings a week, then the house is likely overpriced. If the house has shown 10 times or more and an offer has not been written, then the condition of the property is not up to standard with others in the price range and potential buyers are passing on it.

Rolesville’s location has also become significantly more valuable in the past 60 days with the opening of the U.S. 401 Bypass. Houses on the market in Rolesville will likely see an increase in showings since the location puts people 10 minutes closer to Raleigh-Durham International Airport and the Research Triangle Park.

Buyers looking for a small-town atmosphere may put Rolesville at the top of the list now that transportation to and from the town is better suited for commuters.

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Brian Pate has been a well-respected real estate professional for over 22 years. During his time in the business, he has served as an agent, manager, coach, instructor and training manager. Brian leads a team as a mega agent at Keller Williams Realty in Wake Forest.

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