Housing Market Update Raleigh + September Closings & Prices Down
September 2022 Wake County Real Estate Quick Facts:
Total Sales: 1528 down from 1762 in Sept. 2021 and 1796 Aug. 22
Existing Sales: 1154 down from 1417 in Sept. 2021 and 1333 Aug. 22
Ave. Sale Price Existing: $507,611.00 down $19,500 from Aug. 22
Days on Market average is 21 and median 12.
First month since January 2021 were average sold price was below average list price.
652 of the existing sales were below original asking price, on average $38,500 less.
320 sold for over original asking price, on average $20,800.00
Great agent and great listing makes a ever increasing difference.
239 Sales were Cash, over 20%. Most people will say investors, yes more than likely many were but 14 of the 52 sales over $1m were also cash, again over 20%
Market velocity continues to fall. September had 19,174 showings on Wake County listings, versus 21,881 in August and 27,538 in September of 2021. With that said showings on $1m plus homes increased 30% in September vs. August.
PRO TIP: If you or a friend have a $1m listing, there is a market. If it is not selling or getting showings it is not price, it is the listing or the home. A good agent does not recommend a $100,000 price reduction (which happens daily), they analyze the listing and property and if needed recommend investing $10,000 to fix this problem. More on that is later post.
October numbers are not looking great. Ontrack for less than 1,100 closings down from over 1,500 in October of 2021. Price looks be around $500,000.00.
What does all this mean? There are tremendous opportunities in the market. For sellers that want top dollar and are willing to do the work or give up control to a professional it is a great time to sell. For buyers and investors the market is getting amazing. Need assistance navigating the market, happy to help.
What does this mean for brokerages, so much. Recruiting season is going to continue to be a free for all. Tired brokerages pitching "tools", newer brokerages pitching equity and trying to explain it is the market not a poor business plan holding stock back. Many agents who rode the wave will not be around in February. I have heard from many company leaders "this is like 2019, not a big deal", except for the fact there are three or four new brokerages in your market that are taking market share.
Imagine running a business where, not only are sales declining at 20%, but revenue per unit is also declining by double digits, throw in agent desperation and cutting commissions. Not having a sustainable action plan is not an option at this point, but we will see huge shifts in brokerage market share over the next 12 months.