You Can't OutSave the Market

Real Estate markets all over America are seeing a shortage in inventory and a high demand from buyers.  This basic economic situation means rising prices.  It is a perfect storm from a high school economics textbook.  When you have high demand and a low supply, the holder of the inventory can almost demand what they want.  Home sellers are seeing a surge in the values of their Raleigh/Triangle homes and are taking advantage of what the market is allowing.

I have been watching the Raleigh market over the past 6 months and home prices as we all know have continued to rise. In order to give you an idea of just what that looks like, I thought I would focus on one popular North Raleigh neighborhood just as an example of what one might observe in the market…...Bedford at Falls River.

Bedford offers a wide variety of home styles and sizes.  Within the master planned community you will find townhomes, Charleston style row homes, and traditional single family homes from 2000 sqft to over 5000 sqft estate homes.  I looked at 3 main categories in my statistics….

1- Townhomes     2- Single Family Homes under 3000 sqft    3- Single Family Homes over 3000 sqft.

I went back 6 months and looked at 90 day periods to see what homes were selling for in the neighborhood.

Bedford Townhomes

Dec. 1 2020 - Feb. 28 2021 the Median sales price for townhomes in Bedford was $255,000.  That is a median $/sqft price of $145.35 (11 properties sold during this time period)

Mar. 1 2021 - May 31 2021 the median sales price grew to $295,000.  That is a median $/sqft price of $158.55.  $40,000 increase on average in a 3 month period.  If you had been shopping for a townhome in Bedford and decided to save a little more, it would have been very difficult to outsave that increase.

Bedford Homes under 3000 sqft

Dec. 1 2020 - Feb 28 2021, the median sales price was $405,000 equalling $149.40/sqft. Within the next 3 months (March 1, 2021 - May 31, 2021) the median price of homes under 3000 sqft rose to $415,000.  Not as large an increase as the townhomes, but the homes in this second 90 days averaged about 200 sqft smaller.  Their $/sqft price jumped up to $185.68/sqft.  That is an increase of $35/sqft over a 90 day period.

Bedford Homes over 3000 sqft

Dec. 1 2020 - Feb 28 2021 experienced a median sales price in Bedford of $492,000.  This equated to $136.51/sqft.  In the following 3 month period that price leaped to $658,000.  That translates to an average of $151.05/sqft. (average home size of 4000 sqft).  The really interesting statistic in this data is that currently there are 6 homes Pending sale.  At that inventory’s listing price average of $637,000, they have an average of $165.14/sqft.  All of the homes Pending sale went under contract in less than 4 days so it is probably safe to assume that their final sale price will be even higher than the list price.

What do all of these numbers mean??  It means that if you are a homeowner in Bedford at Falls River, there has never been a better time to sell your home for maximum profit.  It also means that if you are waiting, every day you wait could cost you $1000.  If you are in a lease and you are afraid of breaking it early, your savings on the early termination fee is nothing compared to the extra $$ it will cost you for waiting 30 or 60 days.  Find your home, get it under contract, and break the lease.  We in the real estate industry have no idea how long this demand will last and how long the inventory levels will remain low.  Right now there are just over 2300 homes in the Triangle MLS that are Active or Coming Soon.  At this same time there are just under 10,000 homes that are under contract (Pending) sale.  With a sales rate of approximately 4000 homes closing each month, we have only 2 weeks worth of inventory on the market.  You may not want to get into the market right now, but ask yourself…..can you afford not to????

Our team at the Kima Real Estate Group is here to help you.  We can assist you in the sale of your current home, helping you achieve the maximum possible return.  We can also assist you in navigating the real estate market here in the greater Raleigh area and get you into the home you want.  Give us a call today and let us talk you through it. 

Chad Wingler

Lead Buyer Specialist

919-300-5421

Chad@PeterKima.com