Real Estate Market Watch for Davidson County for June 2017
Just like the rest of the county, the Davidson County Real Estate Market is experiencing the pressure of a continued shortage of homes for sale. Prices continue to increase for homes in Davidson County and the surrounding Piedmont Triad area, especially in the first time buyer price range. Serious buyers are still out looking to buy and when homes priced to sell and in good condition come on the market they go under contract quickly, sometimes with multiple offers and sometimes within the first week the listing is on the market. This is a completely different market than 2 or 3 years ago, when buyers had a lot of homes to choose from and could afford to wait.Here’s a Look at the Housing Statistics
These figures are compiled by Market Trends and Infospark from the Triad MLS system.
In Davidson County, North Carolina at the end of the second quarter of 2017, 554 properties sold and this was an increase of 6.95% from the same time period in 2016 when 518 listings sold. The median sold price was $145,000 up 9.85% from 2016 when the median sold price was $132,000. These charts are interactive so you can hoover over the charts for the data.
What Does this Data Mean for Buyers?
Buyers have to be ready to make an offer when they see a home that fits their needs. They should be pre-approved from a lender. Have a clear picture of what they can afford and what type of loan they are using. If buyers haven’t found a home yet or have been outbid on other properties, as soon as possible when a new home comes on the market they need to see it and if it is the right one make an offer.
To really understand the shortage of inventory, back in 2015 at the end of the 2nd quarter, there were 1042 active listings on the market for buyers to choose from in Davidson County. Today at the end of the 2nd quarter, there are 694 properties that are active. The median home price in 2015 was $129,000 and in 2017 it is $155,000. How long does it take to sell a home in 2017 – the median days on market is 26 days in 2017 compared to 64 days in 2015. Sellers are receiving 98.3% of list price in 2017 compared to 97% in 2015.
This shortage of supply is causing prices to rise. We are starting to hear nationally that this overall shortage of homes throughout the country is causing some buyers to give up their home buying search for now and wait it out. But is this really the best thing to do? It might not be, because of something called the affordability factor. What you can afford to buy is based on the current interest rate and the current prices of homes compared to your income and debt which have to stay within a certain ratio depending on what type of loan you are using. If prices and the interest rate have both gone up, then you will not be able to afford what you could before the prices went up and the interest rates increased. This affordability factor especially affects the first time buyer who has not built up equity in their present home to buy their second property. Rents across the country are also increasing which makes it harder for first time buyers to save for the down payment of their first home. Surprisingly though, there are programs that first time buyers might not be aware of to help them purchase their first home. FHA loans and USDA loans are programs developed to help buyers afford to buy their first property without having to have 20% down payment.What Does this Mean for Sellers?
Your home will probably sell quickly if it is priced correctly and in good condition, but as the seller you will also need to find another home. A lot of sellers are deciding to buy their next home first before they put their present property on the market. If you don’t want to go that route – then as a seller have a good idea of where you want to go and if there will be homes you want to purchase if your home sells quickly.
For more stats on particular areas in Davidson County, visit the community pages and click on the market data tab.
If you are interested in learning the present value of your home, use my instant home valuation tool. For a more detailed analysis of your home, contact Megan at 336-239-7501.
