Real Estate: Rolesville Q2Real Estate Market Update

— Brian Pate • August 2017

The pace of sales in the Rolesville real estate market in the year’s second quarter has been robust. With 78 homes sold at an average sale price of $348,134, and a median sold price of $343,250, we are seeing strong appreciation in the marketplace.

All totaled, more than $27 million in real estate was sold in the town of Rolesville in the second quarter of 2017. At the same time, there was an increase of 1.7% in the first six months of 2017 of the median sale price. That is an annual rate of 3.4% appreciation throughout Rolesville.

The other challenge in the Rolesville market right now is that the days on the market is up by 25% from the 2016 average. Although the days on market has increased only from 36 days to 42 days in the first six months, that is still a significant increase. If we continue that pace, days on market could be over 70 days inside of four months.

What can we expect in the next six months?

We know that rates are likely to go up at least one more time this year after the comments from the Federal Reserve chairman this past month. Rates are unlikely to increase as we get closer to election day in November. It is likely the Fed will raise the rate at the September meeting. It will likely be only a quarter of a percent but it will still impact the housing market.

Expect lenders to make their adjustments for home loan interest rates prior to the adjustment by the Fed. Most of the time lenders are ahead of the curve when the Fed raises rates.

Another challenge that is rearing its ugly head is the wealth gap between families that are homeowners versus families that are renting. National Association of Realtors statistics tell us that a homeowner, over a five-year period, will have up to 45 times more net worth than a tenant over that five-year period.

If you are currently renting, you cannot possibly save as fast as home prices are appreciating right now. If you are on the borderline of being able to afford to purchase a home right now, it is a good time to set up a meeting with a trusted advisor. Waiting to buy real estate when you have the ability to buy now is a huge financial mistake that could cost you for years when all financial factors are considered.

Sellers of homes need to be aware that we are starting to see a significant shift in the market. We have seen far fewer multiple offer scenarios than we did 90 days ago. At that point, we could put a house on the market at 3 or 4 percent over the actual value and still get multiple offers, with someone bringing cash to the table to the tune of 20% or 30% to avoid any financing issues.

The other thing sellers need to be aware of is to not get greedy with your price. Pricing your home above market value will cause you to have fewer eyes on the property. When people are looking online, they are comparing dollar-per-square-foot values, and that is going to affect your dollar per square foot. If you are higher than other homes you are competing against, your home won’t even get a close look, much less a visit, from the prospective buyer.

Brian Pate - Real EstateThe other side of that is even if you are able to get that price, the house still must appraise at that price. We are seeing a large number of homes that are under contract that the house is not appraised for the sale price. When that happens, the buyer has the opportunity to walk away with no penalty. Sellers are having to make concessions in order to get homes that do not appraise to the closing table.

As I have been saying for the past 12 months, if you are selling a home that is under $300,000 and moving to a home that is $350,000 or more, it is the perfect time to sell and buy right now.

Brian Pate has been a well-respected real estate professional for more than 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. He can be reached at 919-669-4575.