Why the election might change things in the short term, but won’t be a factor long term.
If you’ve been following the local real estate scene in Chapel Hill and Durham, North Carolina, you’ve probably noticed a significant slowdown since the July 4th holiday. This summer has been one of the slowest I’ve seen in my 26 years in the business. Because of what’s happening, many people are asking these questions: What’s causing this market cool-down? And more importantly, what does it mean for you as a buyer or seller?
First, remember we’re in an election year. Historically, election years tend to slow the real estate market. People are uncertain, so they wait, hoping for more clarity before making big decisions. On top of that, many potential buyers are holding off, expecting interest rates to drop further. Why buy now if you might secure a better rate in a few months?
But here’s the silver lining: interest rates have already started to decrease. Currently, rates are around 6.33%, and some 15-year mortgages are even dipping below 6%. This could be the push hesitant buyers need to jump back into the market.
“Election years may slow sales, but they also create opportunities for savvy market players.”
Now, let’s break down the numbers. Despite the slowdown, the market isn’t stagnant. Median prices have remained stable, increasing by no more than 5%. Listings have risen by 8% to 17%, providing more options for buyers. However, closed sales have dropped by 3% to just under 7%, reflecting the overall cooling trend. Interestingly, the days on market have decreased significantly by 57% to 70%. This means homes priced right are still selling quickly.
Rising inventory is something to keep an eye on. Earlier this year, we had about a month’s worth of inventory, but now we’re seeing two to almost three months of homes on the market. In some price ranges, inventory has climbed to four months. With more homes available and sales slowing, price increases are leveling off, and we’re seeing more price reductions as sellers adjust to the market.
So, what does this mean if you’re thinking about selling? It’s still a good time to sell, but you need to be strategic. Position your home effectively, make necessary repairs, consider any updates, and price it right. I’m confident buyers will return to the market. And when they do, you’ll want your home to stand out.
If you have questions about your specific market or need advice on preparing your home for sale, you can call me at (919) 759-6359. I’m here to help you navigate these changes and seize the opportunities ahead.