Raleigh Housing Market - September, 2015
Raleigh residential homes sold just as fast and for $20,000 less on average than they did in the month of August. This is a considerable drop in price, especially as the number of homes for sale begins to decrease. Part of the reason September brings a fast sale price, as well as a drop in average sales price is schools. Once schools start people need a place, and those who haven’t sold feel the pressure of ‘missing’ the market.
This is an emotion sellers should NOT give in to. In fact a lot of the logic sellers repeat back to me is “the best time to sell a home is in the spring,” far from accurate! The best time to sell a home in Raleigh is during the Winter! So while every Real Estate Article you read that says the spring is the best time to sell, it’s filled with inaccurate data.
Trends in the Raleigh Real Estate Market have stayed consistent especially when you compare the homes that sold in August of 2014 to August 2015 and September 2014 to September 2015 - both are $9,000 higher here in 2015. This is the type of slow and steady pace that wins races in real estate. The lack of volatility in the Raleigh housing market is one of it’s many strengths.
The sheer volume of people who are moving to Raleigh are another one of the many benefits the local real estate market offers. So what is bringing these people to the Triangle area of North Carolina? The jobs. Raleigh is ranked the #1 place for jobs in the United States by Glassdoor.com and that trend should hold steady as the affordability of doing business in Raleigh is among the best. Businesses also have incredible access to talent from the cities educational institutions.
The Raleigh Real Estate Market sold for $20,000 less in September than it did in August. Comparatively to June and July, September is showing signs of a slowing market, although the days on market is still high. We suspect the number of days on market to dramatically decrease in the month of October. Buyers are still out shopping for homes in September because they may have missed on homes in the July/August timeframe.
If you’re considering selling your home there is a number of things you can do to improve it’s value and strengthen your sale price. Right now sellers have a few great advantages such as limited inventory, interest rates are low giving buyers more purchasing power, and a healthy real estate market in Raleigh.
As a buyer, what’s the best local real estate website for accurate data when you shop homes for sale? The answer is one that is connected directly to the local MLS and doesn’t receive third party data. Additionally a local real estate website run by a local brokerage offers information other national websites cannot.
Companies like Zillow, Trulia, and Realtor.com are not out on the streets viewing these homes every day. Which gives them a harder time of providing buyers and sellers with truly accurate data. Zillow is by far the worst of the three, because buyers and sellers will call me with some really inaccurate data that wastes their time. If you are going to shop homes for sale do so on a website that is connected directly to the local MLS vs. a national website like Zillow. Have the people who work at Zillow ever been to Raleigh, NC?
Without further ado, let’s jump into some accurate statistics.
Here is the September Raleigh Real Estate Update by Raleigh Realty:
Raleigh Real Estate Market Trends - September, 2015
4.41% - is the year over year appreciation in average selling price for residential homes in Raleigh from September 2014 to 2015.
Homes for sale in Raleigh sold at an average price of $265,233 which is down around $18,000 from the month of August when homes sold on average for $283,000. This type of price differential was expected with the number of sellers who ‘have to’ sell since school has started. Seasonality plays another role in the price drop.
As the weather gets cold less and less people are out shopping for homes. While there may be a drop in the number of people shopping for homes there is also a significant drop in the number of people who are selling their homes.
The average days on market remained relative from July and August to September.
Homes in Raleigh sold For Less in September
The average days on market in September is the same as it was in August, 44 days on market!
As the homes reached the yearly high in August they took a decent step back down ($18,000) in September. Still up 4.41% from last year.
Compared to last month homes are selling at relatively the same pace, even with the price decrease. It’s tough to tell if the number of shoppers has gone down though with the days on market remaining the same. There are definitely some similarities between the differential in days on market from 2014 to 2015 in both August and September. That trend has stayed consistent year over year.
Part of the reason a lot of shoppers are still out is the high rental prices in the Raleigh area. People are looking at both the low interest rates as well as to buy real estate instead of renting.
In September we wrote an article on why you should buy real estate in your twenties. Millennials represent the largest pool of buyers, and although deemed ‘generation rent’ they are proving the experts wrong. More Millennials are buying homes in their twenties than ever before.
It's a solid time to be a seller, as well as a good time to be a buyer. The low interest rates really help buyers afford the homes they want!
Raleigh Real Estate - Sales in September
Homes in September, on average, sold for $265,233 which is nearly $18,000 less than they sold for in August.
In the month of August the real estate market was at it’s top and this month there has been a dramatic reduction in average selling price.
The stats prove that selling your home is a good idea, and that buying one is not necessarily a bad idea with the low interest rates. Especially if you’re currently renting and want to reduce your monthly expenses.
Selling your Home in Raleigh in September
It's a great time to be a seller in the Raleigh area with home prices near their high, and the fastest average days on market!
If you’re going to sell your house, now is the time to do it. The average days on market is reflecting a strong market for sellers (almost 40 days faster year over year). These estate’s are selling for almost 5% than they were last year.
As we stated last month the pool of buyers will begin to decrease as the weather cools off and people settle in school. This does not necessarily mean it’s a bad time to sell though! In fact data shows the best time to sell is when you’re competing against the least amount of homes. That is in the Winter time.
Raleigh Real Estate - Market Activity
The Real Estate Market is cooling off, as is the weather!
September 2015 Numbers
$271,811 - The average listing price for homes that sold in September 2015
$265,233 - The average sale price for homes that sold in September 2015
97.58% - The list to close price ratio for homes that sold in September 2015
44 – Average Days on Market in September 2015
Raleigh Real Estate - Market Analysis September 2015
Part of the reason homes in Raleigh are selling for so much more is the low inventory levels over the course of this year. While these levels have only been emphasized by the increase in number of buyers. This has helped to create a perfect storm for a seller. The year over year trends in Raleigh are showing great appreciation. Year over year average appreciation in Raleigh homes is around 3.5% and it appears that will remain pretty consistent here in 2015, though it could end up a bit higher!
There are plenty of things sellers can do to add value back to their home before they list it for sale. Check out some of those strategies here!
Data is prepared by Ryan Fitzgerald a local Raleigh Realtor and owner of Raleigh Realty. These numbers are specific to the city of Raleigh and do not include the surrounding areas of Durham, Chapel Hill, Cary, Apex, Holly Springs, Morrisville, Fuquay-Varina, Garner, Clayton, Wake Forest, and Hillsborough.
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Hi there! I'm Ryan Fitzgerald, a REALTOR in Raleigh-Durham, NC and the owner of Raleigh Realty. Chances are you and I share a similar passion, Real Estate! I also have a passion for technology, sports, and people. Would love to hear from you. Drop me a note in the comments section below and feel free to share this article socially!