So here we are again at the beginning of another spring market in the Durham/Chapel Hill area. The azalea's are in bloom, despite abnormally low temperatures, and things are looking beautiful. It's a great time to go out and start your home search, or is it?
Over the last few years the real estate market in our area has gotten tougher and tougher for buyers in Durham and Chapel Hill. We are seeing very little inventory and prices are going up up up. For example, in Orange County, year over year, the median sales price is up 34.8% and inventory is sitting at a 4 month supply, where 6 months is considered a balanced market. Durham county is up 17.1 % and inventory is sitting at a staggering low of 1.9 months of supply. So some buyers are asking themselves, why should I jump in now?
What does this all mean to you, the average buyer, looking to purchase in the Triangle?
Understanding the Current Real Estate Markets
First it means you’re better off working with an experienced agent that knows the market and knows it well. Secondly, you must be pre-approved, not just pre-qualified. (To understand the difference read more here). Finally, and most importantly, you need to be both patient and confident to move forward immediately when you find a home you like.
In today’s market it is very common for a home to come on the market on Thursday at lunch time. You arrange with your agent to run over right after work and take a look, only to pull up and see 6 or 8 or 10 other groups waiting in line to see the house. This of course leads to multiple offers and the home eventually selling for well above asking price.
Understanding this can be very frustrating and discouraging both for you and your Realtor. Our advice to clients, “Don’t sweat it, there will be other homes and I’ll help you find it. Do not get discouraged and don't give up.” When expectations are reasonably set from the start we find it helps make it easier for our clients. One of the most important things that we do when meeting with potential buyers for the first time is to sit down and have a frank discussion about how things are working in the area and things have changed, before we go and look at homes.
The conversations that we’ve been having over the past couple of years are very different than those we were having in 2009-10, for example. We also recognize not every home is the same but over the past 30 months depending on location and price point, multiple offers happened more than fifty percent of the time.
Having a Realtor that does their homework is vitally important. We need to understand what is happening in each specific neighborhood in order to advise you accurately as to what to expect. We also need to be prepared to walk away if there are just too many offers or if the sellers are asking for crazy things. This is hard to do when you may have already missed out on a few homes you’ve made offers on, but in the end, even in a sellers market like this, when it’s common for properties to sell above asking price; we feel there are still limits to what is truly reasonable and what may likely be a decision you later regret.
Regardless of current market conditions this is in fact, still a great time to buy.
Reasons to Buy Homes In Durham & Chapel Hill This Spring
1. Attractive Pricing. This area is still priced very attractively compared to other east coast cities. The median sale price for the city of Durham sits around $171,400 and for Durham County as a whole it is $205,000. Now in reality, the typically buyer is probably in the mid $200,000's. Chapel Hill sits at around $340,000 and Orange county's median price is around $313,500. A typical Chapel Hill buyer is in the $350,000 to $550,000 range depending on location. So how does this compare? How about Alexandria, VA at $491,600 or Frederick, MD at $252,700 or Williamsburg, VA at $303,100. Maybe Charlottesville, VA at $269,325 or Annapolis at $385,900. If you really want to get crazy how about Boston at $569,900 or Garden City, NY at $848,000. Point being, even though values are rising, prices are still attractive and there is still room for prices to grow.
2. Low Interest Rates. Interest rates remain at all time lows so a buyers purchasing power is as good as it has been in years. The economy is growing in the Triangle, businesses continue to add jobs and growth is increasing. Recently the Research Triangle area was named the 15th fastest growing metropolitan area in the county and another study showed an average of 80 people moving to the triangle daily.
3. Lifestyle, Convenience, Opportunity, and Nature. Combine low interest rates, comparatively inexpensive housing, a robust economy, great climate, world class medical facilities, several renowned universities, incredible cultural offerings, the Durham Performing Arts Center, plus one of the hottest culinary scenes in the nation, all within 2 hours of the beach or 3 hours to the mountains, and we think you’ll agree, it’s time to buy a home!
If you're thinking about buying a home in Durham, Cary, or Chapel Hill this year, get the team with the most experience on your side. Get in touch with Andrew Palumbo or Larry Tollen today; send them a message or give them a call at 919.659.5173 to learn more.
Posted by Andrew Palumbo on
Leave A Comment