We go over what will happen in the next 90 days of this crazy market.
We recently sent out our quarterly letter to our clients and friends. Today we wanted to go over some of the highlights that we’ve seen in the last 90 days and what we’re expecting to see in the next 90 days. Let us know if you’d like to see a copy of it.
Here are a few key points from the letter. Demand is far outpacing supply nationwide but especially here in Triangle. We are seeing listings move extremely quickly with multiple offers. We had a listing that sold for $41,000 over list price. We’ve seen that in all price brackets at the moment. In new construction we’re also seeing builders running into shortages of lumber, so the cost has gone up significantly. Due to these material shortages, it’s taking a lot longer to finish new construction.
A question that we’re receiving a lot is, is this a housing bubble? There are a few reasons we don’t believe that it is. Right now, we have about seven to 10 days of supply available for sale in Wake County. In 2007, that number was closer to nine or 10 months of supply. People who’ve taken out a loan in Wake County this past year had an average credit score of 730, and they’re averaging between $10,000 and $15,000 for a down payment.
“We are seeing listings move extremely quickly with multiple offers.”
Given those few items, we don’t think this is a housing bubble, but as we said in our letter, we would never suggest that someone speculate on the real estate market. We see real estate as a long-term investment and advise that buyers should as well. We’re seeing an increase in the number of listings coming on the market. It’s slow, but we think that it’s going to continue to increase as more vaccines are administered and people feel more comfortable putting their homes on the market.
If there’s something that we can do for you or you have questions about the market, please contact us. Given the current environment, we suggest hiring an experienced, patient, and calm real estate broker. We’d love to be that for you and your family and friends. If there are any real estate questions that you have or someone you know has, let us know.