Dunbarton Single Family Home Report: July-September 2022 (3rd Quarter)
Perspective is everything, isn’t it? After a weekend of monsoon-like rain after Tropical Storm Ian moved by, a little bit of drizzle and overcast skies almost feels cheerful. Sometimes it take a little bit of the undesirable for us to appreciate what we have, or had.
In this edition of the Dunbarton Single Family Home Report the focus in on the most recent sales in the neighborhood from July to September. Those sales alone, out of context don’t give nearly enough information. That’s why they are combined with one year’s worth of Dunbarton detached home sales dating back to October 1, 2021 when the six and twelve month data points are broken out. For now, let’s take at a look at the most recent detached home sales in Dunbarton for the third quarter.
Two out of four sales sold at their list price. Two sold below their list price, one significantly below list price. (As a point of information, list price above is the original list price a property has when it first hit the market.) This is a departure since last report when only one Dunbarton detached home sold for list price and the remaing six sold above list price. Another difference in the sales reported for the third quarter is that only one had single digit days on market. That was the majority of sales last report. The market is shifting.
When the six and twelve month data points are pulled out to produce the updated year’s worth of Dunbarton single family home sales, we still see a picture of a seller favored market.
Starting with the sold price column, both the six month values are above their respective twelve month values. The gap between the twelve month average and the six month average is definitely tighter than we saw last report. The gap between median values is a tad more. Values are not yet showing a downward trend in the long haul, but sellers pricing high, banking on extreme buyer demand, may be disappointed when they face price reductions to get under contract. The rise of mortgage interest rates, while not directly affecting would-be buyers who come to Dunbarton and other fifty-five plus communities with cash or exceptionally large down payments, is likely to affect the sale of those buyers’ existing homes. Interest rates for a thirty year fixed mortgage are now at 7.5%. That decreases buying power for the lower down payment buyers that are buying those existing homes of would-be Dunbarton home buyers. Likely the effects will be seen in coming reports, but it may not be terribly dramatic.
Seller subsidy is where we learn how much closing cost help Dunbarton detached home buyers were able to negotiate from their sellers. Only one sale out of four gave seller subsidy. Closing cost help is largely not a concern for Dunbarton single family home sellers. The amounts given over the last twelve and six month periods, when averaged for the number of sales, is minscule. Better indicators are the median values at zero. That means the majority of Dunbarton detached home sellers gave no seller subsidy in both time frames. Odds are good a Dunbarton single family home seller would not be troubled with this request.
When it comes to days on market, the six month average marketing time shows a longer period of time to go under contract compared to the twelve month average marketing time, but only by two days. The median values are still at four days. Even with the increase in average marketing time, a well prepared, properly priced and professionally marketed home will not linger on the market.
If you placed you Dunbarton detached home on the market, priced to current conditions, you could reasonably expect it to take about two weeks to go under contract. As discussed above, seller subsidy would be a low probability request from buyers. More importantly, the days of multiple offers and waiving every conceivable contingency are gone. The market is acting more measured. Buyers are taking their time to act, being much more deliberate in their actions. It is likely a home buyer would want a home inspection at a minimum.
The next Dunbarton Single Family Home Report will be out in January. Until then, I wish you every happiness the upcoming holiday season has to offer. As always, if the need to sell your Dunbarton home arises, I would be honored to help you figure out your place in the market. My business runs year round, making my sellers the max the market will allow in any season or any conditions. Put my over seventeen years experience as a Top Producing Bristow Real Estate Agent to work for you and your sale will be handled with the utmost priority and respect.
Chris Ann Cleland
Associate Broker, Licensed in VA
Long & Foster Real Estate