Braemar Townhouse Report: May-June 2022
Before we close out the month of July, it is my pleasure to bring you the Braemar Townhouse Report for May and June 2022. This is the last in the most recent batch of Braemar real estate market reports. What can I say? I’m a creature of habit. I started these bi-monthly reports in 2005 and published them alphabetically. “T” for Townhouse most comes after “R” for Ryan Homes. Over the years I have added quarterly reports for the townhouse-style condos, piggyback townhouses and patio homes. Each one of those may be considered a townhouse in the broadest since of the word. However, this particular report covers traditional townhouses, which to me are defined as having three levels, being attached only the sides and having a back yard.
During the months of May and June, there were seventeen traditional Braemar townhouses that sold. That’s a lot! Details of those sales are listed below.
At a glance everything looks healthy. The only Braemar townhouses that didn’t sell above their list price are the first one on May 9th and the last three on the list, which are the most recent sales. Hmm. The last three on the list also gave seller subsidy (closing cost help to the buyer) as did the May 19th sale. In fairness, two of those four amounts look as though they are in lieu of home inspection repairs or to settle walk through issues. Finally, all went under contract in a week or less except for the very last sale on June 27th.
So when these most recent sales are added to all the Braemar townhouse sales going back to July 2021, what do our updated six and twelve month market markers tell us?
Sold prices look very healthy, especially compared to last report. The lift we see in both of the most recent six month values compared to their respective twelve month values is much higher than it was last report. It’s not inconsistent with what I am personally seeing in the market. While buyers are acting more deliberately now, and less prone to frenzied behavior, there is still not enough homes to meet the buyer demand. That means we are still in a seller’s market.
Seller subsidy does appear to be staging a comeback. Not surprising given how sharply mortgage interest rates have gone up since the spring. First time buyers, the most likely to purchase a Braemar townhouse, were already feeling the affordability pinch by rising values. Now they are pinched with higher interest rates. Seller subsidy may become a more frequently seen request as buyers looks for rate buy down help. Still, it is important to note that more that way more than half of Braemar townhouse sellers gave no seller subsidy at all. If you wanted to minimize the odds of giving closing cost help when you sell, hiring an agent that helps you create the maximum buyer enthusiasm is a must. Having the home that buyers want over everything else available is where the best deals happen.
Days on market seems fairly steady and is super fast. The average days on market increased by a day in the six month average value since last report. Meanwhile the six month median marketing time fell one day. Still, the trend is both six month values, compared to their respective twelve month values this go round, is faster.
If you placed your Braemar townhouse on the market, priced to current conditions, you could expect it to be under contract in a week, maybe two. The summer seems to be a time of disconnect between sellers and buyers. Sellers think, “School is out. What a great time to list!” Buyers think, “We’ve been house hunting since early in the year. Time for a break and sun in the fun while the kids are out of school.” And as discussed above, your likelihood of being asked for seller subsidy is increasing, but still avoidable if you are properly prepared and professionally marketed to get more than one buyer interested in pulling the trigger at the same time. Unfortunately, the days of a pile of offers are behind us. And we are also finding buyers less likely to waive contingencies.
The next Braemar Townhouse Report will be out in September. As we head toward the fall market please know that year end is a very powerful market. If you want to learn more about a potential late year sale, get in touch for your complementary consultation. It is my pleasure to get my Braemar sellers the top of the market. Since 2005, No One Knows Braemar Better!