Suburban Living Magazine of Fuquay Varina interviewed local realtors about new home construction in Fuquay Varina.
There is a lot of building going on right now in Fuquay Varina. 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?
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 November 20, 2016 to May 20, 2016, 343 detached single families in Fuquay Varina have closed that are not new construction. During this same timeframe the MLS is showing that 231 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 May 20, 2016 there are only 105 Fuquay Varina 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, Fuquay Varina 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 Fuquay Varina are exceptional compared to other areas like Holly Springs, Apex and Cary. The proximity to HWY 540 and HWY 401 and HWY 1 are also making it an easy choice for buyers who work in or around the Triangle.
Erica B. Anderson
Team Anderson Realty