We went to some of our local realtors to ask about the market. Here’s what we asked, and how they answered:
There is a lot of building going on right now in Holly Springs, adding almost 100 new homes a month. How is this affecting the value of the homes that are already built? Is this a good time to sell? Will values rise with inventory continuing to increase? What’s more popular now, new construction or established homes?
Having been a homeowner in Holly Springs since 1997, I’ve seen huge growth, with no sign of slowing down, this year being one of the best to sell over the past 5 years. The value of existing homes has increased between 3-7% year over year, since 2011. What owners of existing homes need to understand is that builders are still behind the curve of demand, though all indicators are showing they will catch up by 3rd quarter 2017, which means sellers of existing homes will be competing for attention with new homes and their values will plateau.
Erica B. Anderson
Team Anderson Realty
During the time of the housing slump, builders and developers were purchasing land often as foreclosed or distressed properties. This allowed them to build and sell during the decline at very competitive prices and resale properties were struggling with being able to compete with new construction home values and trendy interior upgrades. Thankfully, once most of those distressed properties were purchased and the economy began to improve, existing homes values started to substantially increase and land has become much more expensive and harder to locate. This is giving resale properties a more competitive market and allowing them to sell much higher than they were in previous years.
I believe that values will continue to increase as inventory is still not meeting demand, even with the new construction homes being built at all-time high numbers. Inventory is so low right now that many of our listings are selling within the first few days of listing and often times at or above list price, with multiple offers. Now is a wonderful time to sell as many buyers are idly waiting only for homes to come on the market. I am finding that although the appeal of a new home is still there with some buyers, the land and the lot is what many buyers are finding as most important and new construction is not always able to give a lot with established trees and size desired by the buyers.
The Multiple Listing Services (MLS) that real estate agents use to find homes for buyers and market their listings is showing that from December 13, 2016 to June 13, 2016, 305 detached single families in Holly Springs have closed that are not new construction. During this same timeframe the MLS showed that 142 detached single family new construction homes have sold. Not all new construction homes are listed on the MLS as many are purchased as pre-sales and therefore not entered in the MLS, but this gives the consumer a solid indication that resale sales are robust. Currently, as of June 13, 2016 there are only 151 Holly Springs detached single family properties as listed actively for sale and not under contract.
Right now interest rates are still at historically low levels with many buyers purchasing homes with loans in the 3-4% fixed interest rate rage. Generally, for every 1% increase in interest rates, a buyer loses 10% in buying power. This is creating a sense of urgency for many buyers and they know that rates cannot stay this low forever. Also, most of Holly Springs is still a USDA eligible area which many first time homebuyers find appealing. USDA, if the buyer qualifies for it, allows the buyer to purchase a home with 100% financing. Other buyers are finding that the quality and size of homes available in Holly Springs are exceptional compared to other areas like Apex, Cary and Morrisville. The proximity to HWY 540 and HWY 1 are also making it an easy choice for buyers who work in or around the Triangle.
Laura Moody McCorry
FRONT PORCH REALTY
We are seeing tremendous growth in the Holly Springs and Fuquay-Varina markets. New construction starts have not been able to keep up with the demand for housing. This has been good news for re-sale homes as inventory is so low, prices have increased as much as 6-7% from 2015. Much of our new-construction is being completed by “National” builders so they are built on slabs and their cost per square foot is very competitive. However, their lot size is very small compared to our existing re-sale market. If lot size matters to the buyer, then they will pay for the custom re-sale home pricing. It all depends on the situation of the buyer; single or newly married millennials usually go for the “brand new” and convenience to shopping along with neighborhood amenities. While the families with children may go for a re-sale home that has more of a yard and they don’t mind driving out an away from our hustle and bustle. The empty nesters and retired buyers like their Master Bedroom on the first floor or a ranch style which is not easy to find amid the existing new construction inventory.