Braemar Property Value Report: July-August 2020 (NV Homes)
Another late September day, another Braemar Property Value Report to share. This one focuses on the sales of houses built by NV Homes in our neighborhood and covers the activity from July and August.
There were two NV homes that sold during our current reporting period. Their sold prices were very close to each other at $552,000 and $565,000. Looking at the details below, on paper it seems the only difference is one had a walk out basement exit and the other didn’t have an exit at all. That $13,000 difference in sales price, if all else is equal, is what appraisers call a market extraction. That’s how appraisers determine values of different upgrades or structural differences. Find two that are mostly alike except for one thing and figure how much that one thing the higher priced home had is worth. There isn’t just a list of values for basement exits, extra bedrooms, bathrooms, upgraded kitchens, etc. It’s all determined by market extraction and why values for upgrades and structures change so frequently. It’s one of the reasons that hiring a listing agent that understands this principle is so important. They may be able to find a higher extraction and raise your value.
Enough with the market extraction lesson, the details of those NV home sales are listed below:
As is my practice, I take these most recent sales and combine them with the rolling twelve months of NV home sales and extract six month and twelve month value points to tell us how our market is trending. The updated values can be found below:
Starting with the sold price column we see that the six month average is a tad higher than the twelve month average sold price. Meanwhile, the six month median is nearly $10,000 higher than the twelve month median. While NV home values are still pushing up, their rate of gain is not as pronounced as we see in lower price ranges. The higher price ranges in our market have not been seeing the frenzied activity of the low $500K and below homes. Still, upward pressing values is still a good thing.
The seller subsidy column shows us how much closing cost help NV home sellers have been giving on average. The six month average has fallen below the twelve month average by more than half. And the six month median and twelve month median remain at zero. The latter means that more than half of buyers for NV homes are foregoing closing cost requests, or having them negotiated away, in their transactions. We do see in the two sales above that one seller gave nothing and the other gave $3,000. Seeing $15,000 in closing cost help is going to be exceptionally rare in this seller’s market.
Days on market is where we find out how long it is taking NV homes to sell in Braemar. Though only up by one day each, the six month average is higher than the twelve month average and so is the six month median compared to the twelve month median. The two most recent sales show days on market of over three weeks. As I stated earlier, the higher price ranges are not as fast as the lower priced single family homes in our market.
If you placed your NV home on the market, priced to current conditions, you could expect it to be under contract in two to three weeks. You could also expect to give minimal closing cost help, if any at all.
The next Braemar Property Value Report will be in out in November. Until then, I hope you all enjoy the fall season’s upcoming display of brilliant color. Of course, if you have been thinking of taking advantage of the peaking prices in our neighborhood, or find yourself in a position where a move is inevitable, know that our year end market is one of my favorites in which to sell. Demand is always there, but inventory is very low. This year, that difference will be even more pronounced with higher buyer demand than we have seen many fall markets. Give me a call and let’s see what a year end sale would mean for you. Since 2005, No One Knows Braemar Better!
Associate Broker-Licensed in VA
Long & Foster Real Estate