When considering when to sell real estate it is important to understand that all markets are cyclical. It doesn’t matter what market you consider; stocks, bonds, crude oil, pork bellies or real estate, cyclical means that markets go up and they go down. They can also be flat or experience a lull. The following chart shows a simple example.
Currently the Raleigh real estate is experiencing a slowdown in home sales due to the economy and a number of other factors. Yet homes are still selling. There are still people buying homes, even in the higher price ranges. It is a great time to be a home buyer in the Raleigh, NC area. There are lots of homes for sale in our area in all price ranges and interest rates are still very low.
Real estate is not a liquid asset meaning it takes time to sell and it should be regarded as a long term investment. Like most of the real estate markets around the country, if you purchased a home within the last 2 or 3 years in our area, you probably can not expect to see a large amount of appreciation in your homes value, except in certain neighborhoods or unless you have upgraded and or remodeled. The good news is that in our area median home prices are up when compared to last year, but the rate of increase has declined somewhat recently.
The truth is that homes sell all year long. Even in the upper price ranges. As an example, you may have heard that “nothing is selling” in the upper price range. This is simply not true. In Wake County there were 75 single family homes that sold (closed) in the last month (since November 17, 2010) for over $500,000 as recorded in the Triangle Multiple Listing Service (TMLS). Also in the last month, eight million dollar homes closed between $1,025,000 and $1,710,000.