— Brian Pate, Pate Realty Group at Keller Williams • February 2017
2016 ended up being a great year for real estate in Rolesville, and we finished with 248 homes sold. In addition, the median sales price for 2016 tied 2014 for the highest ever for the town.
Sellers were definitely in control of the market. The average days on the market for sold properties was barely two months, and the median was only 34 days. In other words, half of the properties that sold in 2016 sold in less than 34 days.
The most expensive home sold in 2016 was $565,282, which is less than half of last year’s highest at $1.375 million. That number is much more in line with what we expect because $1 million homes are rare in this area.
All totaled, more than $79 million worth of real estate changed hands in Rolesville last year, which is just shy of the record set in 2014.
Overall in Wake County in 2016, there were 40,803 deed transfers, breaking the previous record of 40,390 set in 2005. In other words, activity in the Wake County real estate market is back where it was before the crash of 2007-2010.
Also in Wake County, we saw average sales prices increase by 6 percent, and 17% of all Wake County closings were cash transactions.
The big question people are asking me is, “What can we expect in 2017?”
Once again we will see a tight inventory. In January, we are still seeing historic low inventory levels, and that is expected to continue through March. Once the spring time hits, there are usually more houses on the market which also creates more competition.
Many people try to time the market to sell during the so-called “spring market,” but statistics show us that the best time of the year to sell at the highest price is actually in the first quarter. There are fewer homes on the market, and many buyers are trying to buy in order to get in on the low interest rates before they continue to climb.
The Fed has made it clear that it intends to gradually raise interest rates, and it would not surprise anyone to see rates approaching 5% by the end of the year.
As a result, we have already seen a strong January due to people trying to get in on the action before rates go up. That is expected to continue through the first quarter of 2017.
Another easy prediction is that new construction will continue to be a heavy driver of the market. Although the entire Triangle is up 8% in the number of homes sold last year, resale homes were down 2%, meaning that home builders are capitalizing off of the inventory shortage and the need for housing.
That is also driving the significant increase in the number of apartments being built; there is still a housing shortage here in Wake County.
We do expect to see continued appreciation locally and countywide. Expectations are anywhere between 3% and 5% appreciation, and that is pretty consistent across the board.
We also expect to see millennials becoming a larger portion of the market. In 2016, 82% of babies born in the US were born to mothers age 37 or younger, and as families begin to grow in that generation, you can expect to see them enter the housing market.
At the same time, we are going to see an increase in the number of baby boomers trying to downsize by selling their current homes. Expectation is that those baby boomers will be looking for first-floor master bedrooms at the least and single-level living when possible. Right now, there are very few single-story properties available, and they are selling at a premium; that is expected to continue due to the scarcity of that product.
The bottom line is this: Every person has needs unique to his or her situation, and there is a lot more to selling or buying a house in today’s market than most consider. Before staring the process, talk to your Realtor to learn the intricacies of your local market.
As always, if you do not have a Realtor and would like to learn more, feel free to contact me at 919-669-4575. I am happy to start the discussion with you so you can make an educated decision.
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.