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I am looking at my old neighborhood, in one of the more desired towns, stuff is going in 2-4 days again. I took a look at comps, not many houses had traded in the last few months.
"Asking price" is irrelevant since it's totally subjective and pegged to no standard.
But, yes. Homes are still selling very quickly with multiple offers.
I’m not in the area but I marvel at the price of such a small home. I’m guessing demand and low inventory is having a huge effect on prices despite high interest rates.
Inventory is low and buyers are desperate. Even 8% interest rates won't slow down this market
I do imagine that there will be people buying below what they would have 2-3 years ago, thinking they will that they will upgrade in a few years hoping rates go down. So that will put more pressure on lower price points.
Three houses in my neighborhood have come on the market in the last 10 days. From what I can tell two of them went under contract in 1 day and the other one 2 days I believe (not sure), but they are went contingent almost immediately. These are houses in the $700k+ range. Obviously, inventory is still really tight, but it's insane that houses are still getting snatched up so quickly.
I do imagine that there will be people buying below what they would have 2-3 years ago, thinking they will that they will upgrade in a few years hoping rates go down. So that will put more pressure on lower price points.
Yes, definitely. As long as someone is planning to stay long term, it isn't a horrible idea to buy - especially if one can put down a bigger down payment.
I did the math on my last home, which I still rent out. If I was selling it now, someone would need to put quite a bit more $ to get to the 20% down payment mark - plus the monthly payment would now be close to double what I pay. I had purchased pre-covid run up and have a low rate, I can definitely see how this would "keep" a lot of people in their current homes. It's hard to give up a 2.75%.
Yes, definitely. As long as someone is planning to stay long term, it isn't a horrible idea to buy - especially if one can put down a bigger down payment.
I did the math on my last home, which I still rent out. If I was selling it now, someone would need to put quite a bit more $ to get to the 20% down payment mark - plus the monthly payment would now be close to double what I pay. I had purchased pre-covid run up and have a low rate, I can definitely see how this would "keep" a lot of people in their current homes. It's hard to give up a 2.75%.
Yes; not to mention many owners of those homes are like you (and me) now becoming the newly minted buzzword "accidental landlord".
Even when they do "move up"...the payment on the previous home is so low compared to current rental rates that if they have the savings to cover down-payment of new house....they have a built-in rental income from their old house and it often makes more financial and logistic sense to keep it and rent it out instead of selling.
Incidentally I live in a very-much "starter home" neighborhood in NW Raleigh and only 2 houses of the 175 home neighborhood have come on the market this year. One in February and one this week. Both were listed by heirs when the elderly homeowner passed away. Both were also actually the same exact floorplan built by the same builder as that house in Holly Springs linked in the OP and both were priced a little bit higher than the OP house in Holly Springs closed for (no landfill near here but we do have some moderate airport and 540 noise)
Even up here in Person County, houses in "desirable" neighborhoods (not on a lake, but in a lake neighborhood) are selling quickly. We closed on our house in August of last year. The neighbors across the road have an older home on a smaller lot with no updating and it went under contract in 2 days. The price was just less than what we paid for our house last year. It's a great neighborhood and everyone is on a couple of acres or more, I do think rural living is appealing to many people.
On another note, a house in the neighborhood where our last house was went back on the market in May after closing last September. They paid $20K over asking. They started out asking $80K over what they paid, now they've dropped it down to where they will lose money after paying commissions (unless their agent is willing to lower their fee). I've seen a lot of people selling quickly after buying and asking outrageous amounts that they are not getting. I think they are a bit late to the show.
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