Today's housing market: current trends and insights for sellers and buyers

This article was written for our sponsor, Merriment Realty

From the beauty of its parks, greenways, and trees, to the continued economic growth, the Triangle attracts people from all over the country who are looking for a great place to live, work, and raise a family.

Cindy Poole Roberts, founder of Merriment Realty, is a Raleigh native and has witnessed the incredible growth the area has enjoyed. As a licensed realtor in the Triangle for over 20 years, she has keen insights into this continued strong market.

“Around 70 people move to the Triangle a day because of all we have to offer: cost of living, lots of colleges, climate, sports, culture, and close proximity to the mountains and beach,” said Roberts.

While this influx of population continues, construction of new homes has slowed. Supply chain issues in concert with concern over increased interest rates make builders and investors more cautious. In addition, higher interest rates mean current homeowners are more likely to stay in their homes.

These combined factors lead to an inventory shortage. As economics 101 teaches, low inventory equals high demand and higher prices. But there are several nuances at play and, if understood properly, allow for this to still be a navigable market for both buyers and sellers.

For sellers:

“When houses hit the market that look great and are priced right, they are still selling quickly, and multiple offers are common,” said Roberts.

When inventory is low, it is generally good news for sellers. However, two critical components sellers should be aware of are timing and pricing. “Sellers had it great last year when they could put a home on the market at any price and it would sell. It is still a seller’s market. However, there are fewer buyers, and they are very savvy,” she explained.

The first step an experienced realtor will take with a seller is to create a timeline to ensure the home goes on the market at a time that makes sense with the homeowner’s goals. “I always look at their end goal, and then work backwards to put together a timeline and marketing plan so the timing works out right for them, and it usually does,” said Roberts.

Roberts also noted that overpriced homes tend to sit on the market longer and sell for less than full price, while properly priced homes often get over the asking price in the first ten days.

In addition, considering the fact that correctly priced homes go quickly, it is important for sellers to understand the many options available in the negotiating process, such as the ability to ‘rent back’ their home from the new homeowner to allow for time to finalize moving plans.

For buyers:

While the above information may have made those looking for a new home nervous, there is good news for buyers too. “The market is not as competitive as in 2022, so buyers are able to get the homes they want, it just may take some patience,” said Roberts.

One key factor that made 2022 such a hard year for buyers was that one in four homes sold in the Triangle were sold to investors. These investors were willing to pay over asking price and often beat out first-time homebuyers. In addition, in desperation, buyers were paying large due diligence fees to try and “win” the house. Roberts noted the last two years were hard for buyers. But, she said, “When the interest rates changed, much of the craziness slowed.”

While things are looking up for buyers, patience, level-headedness and a trusted buyer’s agent are all important tools to have. Roberts recommends that buyers always get their own home inspection, even for new construction. In addition, she advises buyers to be wary of too-high due diligence fees.

Last, many buyers are slow to act because of higher interest rates. But there is no promise they will drop anytime soon. While the higher interest rates are causing many states to experience home ‘price corrections,’ the market here continues to be level. Continuing to wait can be a huge pitfall for buyers according to Roberts.

“Waiting for the rates to come back down will mean sitting on the sidelines while our prices still go up. Buyers who jumped in a year or two ago are thrilled with the equity they have built. Renters who didn’t are now paying more rent and, when they finally purchase, will be paying more for the same house,” she said.

Whether buying or selling, Roberts says she tends to believe that as long as buyers and sellers are knowledgeable about the market and work to avoid pitfalls, they can succeed. And the joy she experiences when her clients land their dream home is precisely why she founded Merriment.

She said, “In 22 years, I have never had anyone say, ‘I wish I had gotten that other house I was outbid on.’ It always works out for the best, and the right home will come along. I don’t let my buyers settle and we wait until the perfect one comes, and it always does. It makes it that much sweeter. My most favorite phone call is when I get to yell into the phone, ‘You got it!!’”

This article was written for our sponsor,Merriment Realty