by Ed Neering BIC,
Amazes me that many within our industry are warning and preparing agents of a market correction, but no one is informing the clients who we are suppose to serve and protect. I put together this post to help educate you of the early signs of a coming market shift.
Hopefully by understanding the Phases you can look at the signs within each one to truly understand where our local market is. You should never buy at the top of any market. Lets take a look at the signs.
5-Signs of a Holly Springs Market Shift
- Days on Market Increase- one of the best early indicators is the days it takes to get a home sold starts to increase as demand decreases. It usually starts in the upper ranges.
- Prices Begin to Decrease- Homes in the upper ranges will be the first to drop.
- Number of sales Decrease- Unit sales can decrease from many factors including lack of supply. It's important to use all of these factors when determining where we are at in the cycle.
- New Construction begins to slow- Builders are well aware when a market is about to shift. They will usually offer large incentives and free upgrades.
- Supply of "Move-Up" and Higher End Housing is Growing- this currently is the majority of single family new home construction in Holly Springs.
Holly Springs has experienced a very hot market as it's been in Phase 3 Exuberance for the past five years. As we are showing early signs of Phase 4, it is also a time to be cautious for many whom plan on buying in the next year plus.
Raising Prices ALL Time High:
Average home sold price is the highest it's ever been in Holly Springs. Year-to-Date we are at $374,535, that's a 25% increase in 5-years, it's not healthy or sustainable. We just finished the September Monthly Market Report where we cover other signs you should be aware of and understand. We are following a similar path of 2005-2006 market cycle where many who bought were unfortunately not educated and informed.