Market Show Signs of Slowing
While well-priced homes continue to sell quickly, the market is continuing to slow as average days on market has risen 186.7% year-over-year to 43 days and 30% month-over-month. This is still relatively low, historically. While the economy is motivating some sellers to sell, the median sale price rose 3.9% year-over-year to $385,000 but down $10,000 month-over-month. So, sellers are taking longer to have their homes sold and getting a bit less money for them on average. To capitalize on your investment, you want to work with a real estate expert who understands how to strategically price and market your home so you get maximum return.
Median Sale Price saw a Modest Decline
When correctly priced and positioned well on the market, homes are selling right around list price – 94.7% of list price - compared to 102% last year. Months of inventory (how long it takes to sell all the homes on the market, normally 6 months) have risen 240% to 1.7 months compared to 0.5 months last year. Still no crash in sight but the market is becoming more buyer friendly. These stats really add up when you are selling your largest financial asset–and that’s exactly why you deserve a custom strategic marketing plan.
Less Homes Selling With Multiple Offers
While tight inventory is keeping sellers in control, the craziness we saw last year has been flushed out of the market by a better balance of buyers and sellers. This is giving buyers time to consider their options and place reasonable deposits. Multiple offers are not uncommon but are reduced from a few months ago. With the right strategic plan, pricing, and positioning for your property and your goals, we can attract maximum offers and get your home sold for the highest possible price in the fewest days on the market.
Raleigh Market Highlights
|
Single-Family Home Stats |
Jan. ‘23 vs. Jan. ‘22 |
Analysis |
|
Median Sale Price |
↑ Up 3.9% |
Median sale price is now at $385,000, up 3.9% from $370,575 last year but down $10,000 from last month’s $395,000. When you price correctly from day one, you can maximize offers and ultimately sell for the highest possible price as quickly as possible. |
|
Average Days on Market |
↑ Up 186.7% |
Average days on market are still comparatively low, at 43 days in December. Slowing demand due to interest rates and low supply play a major role, especially when compared to last year’s statistic of 15 days. Strategic pricing and marketing ensure your home sells for top dollar in the shortest time on market. |
|
Sale-to-List Price Ratio |
↓ Down 7.2% |
Correctly priced, strategically marketed homes are selling right around list price – 5.3% below list in January 2023 compared to 2% above list the year prior - making it especially important to start with an expert strategy from day one to sell for the highest possible price in the fewest days on market. |
|
Months of Inventory |
↑ Up 240% |
Inventory remains low but interest rates have pushed some buyers out resulting in the market starting to level. Months of inventory in January 2023 was 1.7 compared with a historically low 0.5 the year before, further highlighting the importance of correctly pricing and positioning your home from the beginning so you can get top dollar as “best in class” rather than languishing on the market. |
Source: All data from Triangle Multiple Listing Service, Inc.
Looking Ahead
Here’s what we’ll be watching over the coming months:
1. Low Supply of Available Homes
Though a 240% increase in months of inventory sounds like a lot, January’s 1.7 months of inventory compares with an even lower 0.5 months in January 2022. The increase is likely due to rising interest rates reducing the number of buyers. But don’t be deceived, low inventory is keeping prices from declining significantly so we will be watching for increases in the number of listings. With inventory low and the median sale prices holding their own—up 3.9% in January 2023 compared to the year before—sellers who work with an expert to properly position themselves on the market can generally expect to secure a nice return.
2. Buyers are Slowing Down
Buyer activity has slowed from a few months ago but we are starting to see more buyer activity recently and expect that spring will bring a more active market. While a 186.7% increase over last year sounds like a lot, January’s 43 average days on the market compares with only 15 days the year prior. With inventory as low as it is, it’s a great time to sell. Regardless of what twists and turns the market takes, to truly maximize your return on investment, it’s crucial that you strategically position your home to buyers.
3. Continued Growth in Raleigh
As Raleigh develops, we’ll continue to see property values increase. Here are just a few things to note:
● Raleigh has a thriving technology sector that is drawing people from across the country. As long as people are moving in, instead of out, demand will remain strong.
● According to PayScale.com, the cost of living in Raleigh is 7% below the national average.
● Raleigh is ranked the #1 city for jobs in the US according to Glassdoor, reports WRAL Tech Wire.
4. What to Expect When Selling Your Home
The market consistently evolves–and you deserve to sell for the highest possible price no matter what. The right marketing strategy, pricing knowledge, and negotiation power are what makes the difference when you’re ready to sell your home and embark on what may be one of the largest financial transactions of your lifetime.
