Raleigh Real Estate – it’s NOT a Buyer’s Market
According to the Raleigh Market Report published by my good friend Jeff Dicks over at Keller Williams Realty it is tough out there if you are a first time home buyers shopping in Raleigh.
If you are a regular reader of my blog, thank you and please share with your friends (shameless plug) then you might be asking yourself “hey what about that article you posted last week that said Home sale drop 15.1% in Raleigh“? and that would be an excellent question.
Competition is Fierce
While sales ARE down across the Greater Raleigh Real Estate Market as a whole from March ’10, there is heavy buyer competition between $0 and $249,999. In fact of the 770 homes that went under contract in April, a full 499 (65%) of those were under $249,999! If however you are buying a luxury home say $500,000 and above, well thats an entirely different story; click here to download the Raleigh-Cary-Chapel Hill & Durham Luxury Home Report for Q1/2011.
First time home buyers are up to 65% of the market place in Raleigh
According to the US Census Bureau the median income in Raleigh is $46,612. That means the $100,000 – $200,000 is a very attainable market for Raleigh first time home buyers who have a far higher propensity to have attained a professional degree and with it higher earnings than in other parts of the state of North Carolina as a whole.
Just today I spoke to Maria Rubio at Coldwell Banker HPW in Raleigh who tells me that her buyer lost an offer on a house that was marketed at $124,000 because the seller had a full price offer without any sales concessions.
John Huber of Exit Select Cary tells me that he had a similar experience last week with a first time home buyer who offered less $4,000 less than asking price on a home offered for sale at $122,000 and $4,000 sales concessions for closing costs and the offer was rejected because the seller had a better offer.
Think about it like this; if you are a first time home buyer shopping for a home in Raleigh say between $100,000 and $149,999 and in April found that your low ball offers weren’t being accepted, it’s because it ISN’T A BUYERS MARKET IN RALEIGH in that price range. There were 160 successful offers made in April for homes in that price range with the average price $127,244 or 97% of the asking price is what the seller accepted.
So lets say you are renting at $800 – $1000 per month and want to fire your landlord. If you are shopping for your first home in Raleigh you will have to offer full price if you asking for assistance with closing costs because you have heavy competition and the average list to sale ratio is 97%. Sellers in this price range simply do not have to accept any less. But don’t take my word for it – check out the full report here. –
Don’t Be Afraid to write an offer
My advice if you are shopping for a home today or in the month of May in Raleigh between $100,000 and $200,00 and have set your eyes on a home; ask your agent to help you to bracket your offer using actual comparable sales that have sold within the past 90 days and make your offer based upon the condition of the property and leave preconceived notions about what you could buy the house for if you had a suitcase stuffed full of dollar bills, unless you actually do have a suitcase like that!
And Finally with the new contract revisions buyers now have a due diligence period that offers the buyers more protection than ever before so if you find the right house that is just perfect for you and your family and it is priced right, strike while the iron is hot, don’t leave the house without an offer drawn and the sellers agent at least called to know they have an offer coming from you because those homes are the ones that are selling the quickest!
Ricardo Cobos is a Mortgage Loan Officer in Raleigh North Carolina expertly assisting financing homes with USDA and low interest rates and low down payment conventional, FHA and VA mortgage loans for move up buyers and first time home buyers alike.
Related articles
- Raleigh Real Estate – it’s NOT a buyers market (theraleighmortgageguy.com)
- Home Sales Drop %15.1 in Raleigh North Carolina (theraleighmortgageguy.com)
- $7,500* Down Payment Assistant for Raleigh North Carolina first-time home buyers (theraleighmortgageguy.com)
- Restoration Company vs. Contractor/Repairman – 5 things to consider (theraleighmortgageguy.com)
Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183
The key is pricing your home correctly. Those that are over-priced, or those that are ‘just trying to see where the market is’ will undoubtedly think it is still a Buyers’ market. Overpriced homes still languish. Similarly, underwhelming homes can take a beating too. If you have updated your home with styles and features from this decade, with no deferred maintenance, and if you are priced correctly (what does that mean?), then you can expect a short ‘days on market’ (DOM) – and it will indeed seem like a Sellers’ market.