Real Estate Market Update September 2023
Is the Sanford and local real estate market really this strong?
Welcome to the latest real estate market update for Sanford, North Carolina. If you've been hearing rumors about an impending market crash, it's time to set the record straight. Let's delve into why the market is stable, what's keeping inventory low, and why it's still very much a seller's market.
It's a Seller's Market, Not a Crashing One
Despite what your well-intentioned neighbor or Uncle Bob might tell you, the Sanford real estate market is not crashing. Recent hikes in interest rates led some to predict a decline, but several factors prove this theory wrong.
Low Inventory and "Lock-in Syndrome"
One of the biggest misconceptions was that rising interest rates would lead to increased listings and decreased buyers, resulting in a surplus of inventory. However, many homeowners who secured 3% interest rates are reluctant to sell only to buy a new house at a 6-7% rate. This "lock-in syndrome" has curtailed the number of new listings, maintaining the supply-demand equilibrium.
Foreclosures Aren't a Concern
Another assumption was that the end of forbearance programs during COVID-19 would unleash a wave of foreclosures. However, current foreclosure rates are low, even lower than during the 2007-2008 crash years. Plus, mortgage qualification standards are much more stringent now, keeping delinquencies at bay.
Deceleration vs. Depreciation: Understanding Home Prices
While it's true that the rate of price increases has slowed, this is not the same as a decrease in home prices. The market has simply gone from a steep incline to a more gradual one. Sanford, in particular, has been resilient to national trends, maintaining steady growth.
The Future Looks Bright
Leading industry experts expect interest rates to decrease again, potentially heating up the seller's market even further. Sellers who were hesitant due to higher interest rates may enter the market, balancing out the surge of buyers. So, the market could experience even more activity and potentially higher home prices.
The Current Market Offers Opportunity
Currently, homes in Sanford are taking around 11 days to go under contract and approximately 41 days from listing to closing. While nearly half of the homes are selling under asking price, about 30% are going above, particularly those that are well-prepared and properly marketed. This unique window of opportunity allows you to sell high and buy under asking price, maximizing your investment.
Conclusion: Seize the Moment
Sanford's real estate market offers a unique opportunity right now. Whether you're buying or selling, you could get the best of both worlds before the market heats up even more. If you're contemplating a move, now is the time to act.
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