This chart shows a real clear picture of what’s been going on with residential real estate prices over the last 10 years. The numbers from 2006 forward are particularly interesting.
As I help great clients buy and sell homes, I hear lots of buzz in the marketplace about how much homes prices have fallen recently. I’ve had lots of clients, and even some fellow agents, tell me their perception is prices are down 10% or more. Well, here’s the objective truth about the matter.
According to this chart, you should expect home prices in the Wake County area to be at about 2006 levels, on average. For those of you considering relocating from out of town, Wake County includes the cities of Raleigh, Cary, Wake Forest, Morrisville, Apex, Garner, Knightdale, Holly Springs, Fuquay-Varina, Rolesville, and Zebulon.
This chart matches up nicely against the reality that I see as I price homes for clients on a daily basis. When helping someone purchase a home that the seller bought only a few years ago, sometimes we find that it is over-priced. More and more we also find the seller has priced the home at current market levels and is bringing money to closing.
When I am representing a seller and listing a home that was purchased only a few years ago, they usually spend quite a bit of time coming to grips with the reality of the current market. Pricing the home too high doesn’t help either. It typically will get us very few showings as savvy buyers and their agents simply ignore it based on price.
And even if the seller and I are lucky enough to find an uninformed buyer, the home would never appraise for the purchase price, and the buyer’s lender would not allow the sale to proceed.
If you’re selling a home that is only 2-3 years old, there is actually some good news in all this for you too. You will be able to go out into the marketplace and buy your next home at the same “discounted” price. As long as you and your agent have the courage to price the home right, and then the skill to negotiate with some of the bargain hunters you will inevitably run into, you can make a move without losing money… over time.
And that’s really the reasonable way to look at a real estate purchase. How are you doing over time? There isn’t anything any of us can do about the current market. It simply is what it is. If you need to move, go ahead and do so. Just be realistic in your expectations and it will be much easier for you. I hope this info helps, and just leave a comment or give me a call if you have any questions!
Chart courtesy of TARR Report
