Welcome to The Tortured Realtors Department!
Just kidding, we're not actually tortured, but Taylor Swift did just drop a new album called "The Tortured Poets Department" and Becca is a Swiftie... Warning, this newsletter is filled with TS lyrics in italics because we are experiencing a lot of new things in real estate right now, and some of her lyrics are hitting just right.
There is a lot of noise in real estate right now, but our commitment to our clients remains the same. We promise to be honest, true to both your needs and best interests, and we will always be BOLDly authentic. I cry a lot but I am still productive, it's an art.
In our current local market, we are seeing a decrease in number of sales while median prices continue to increase. Now we're down bad in housing inventory. Currently, we have under 3 months of inventory around the triangle, and a healthy market is 4-6 months supply.
To give you an idea about inventory compression, here is a graph of Chapel Hill/Carrboro, showing that we are selling less homes than we did 10 years ago. I'm just mad as hell 'cause I've loved this place for so long but the decreasing number of sales while prices have dramatically increased is distressing.
The rising interest rates have the biggest impact for first time buyers. They have had to readjust and are being careful to take their time purchasing. Desiree says "I can't be that mad because the economy is good and unemployment is low." Do we have a lot of work to do in the housing world? Yes, but we don't need to implode the positives of our world right now to get better interest rates.
New construction is the greatest competition for resales, as builders are using incentives to buy down mortgage rates. This is especially helpful for the first time home buyers.
25-30% of sales right now are cash, let that sink in. Who's afraid of little old me? Not cash...
There's a new paradigm for sellers, realizing their home may be on the market more than 30 days. Which is OK! That does not necessarily mean they will take a hit on price, but this is returning to a more "normal" sales cycle for listings. The volume of buyers has declined with more sitting on the side lines waiting to see if rates will go down. You might not have 20 offers like in 2021, but you only need the one. This is a trend we are noticing this year.
Market Stats
Who else decodes you like me?
Don't let your home be a town you're just a guest in, but if you want a property down in Destin (Florida!!!), we can give you a referral! As always, our job is to find our buyers the best house available in the market in their price range. And for sellers, to position the marketing appropriately and masterfully for it to sell at its highest and best price. If you, your family members, or friends have any questions about real estate, we are happy to help.
PS: If you want to talk more about Taylor Swift songs, please reach out to Becca, she will be more than happy to chat. In case you were wondering, Desiree's favorite song is still Anti-Hero.
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