Hi everyone! I thought I’d touch base and talk a little bit about the housing market in the Raleigh NC area. We are experiencing a hot market here, and also a housing shortage. Anyone who lived through the crash as a realtor or builder, predicted this situation, because so many builders went out of business and because so many “cheap” homes were bought as either rentals or primary residences as the market righted itself. NOW, however, we are experiencing the slinky effect. There simply are not enough houses to satisfy demand here.
We lost a lot of builders and developers in the crash, and I assume many never came back, although many did. I see many of the same names pounding out spec homes and custom builds, but they can’t keep up with demand. Interest rates have been at historic lows, fueling the feeding frenzy, and now, there are not enough existing homes either. Baby Boomers are asking for one-level living, and requests for senior living communities are raging. This situation could also have been predicted, although you wouldn’t think so by the scramble to supply this need.
I drove around some of the older communities and knocked on doors, encouraging people who owned older ranch-style homes to list with me, because not only could I sell their house in the blink of an eye, but also,they could buy a home at a very low interest rate. Problem is, now there AREN’T any homes for them to move to if they do sell their ranch style home if they want to be under 200 thousand.
So we’re in a bit of a pickle. Trying to find a home under 200 thousand that’s within a reasonable commute distance is next to impossible, although there are some town homes coming on line under 160 thousand that will not force a huge commute to work. Problem is: Townhouse are two story. Baby boomers want one story.
So. We talk money. Because of the supply/demand discord, prices are jumping. It’s easy for me to list at the top of the price range indicated by a market analysis, and often get at or above list price offers! This is great for sellers, and kind of a balancing of the universe; because these folks took a beating in the crash. Senior communities are popping up all around, just getting off the ground really, but they are priced so high that many of my clients who might want that kind of home laugh and go another direction. People moving to a fixed income lifestyle often can’t easily afford a starting price in the 400’s. I do hear that DR Horton is starting an over 55 community in this area priced under 200. Now we’re talking.
So it’s as hot, crazy market. If you are thinking of selling, call me. We should start by talking about what you want to go TO, and makes sure we can find it for you. Because if we list your home, chances are it’ll fly off the market faster than you may want it to! But it’ll fly at a higher price than you might think too!