Braemar Property Value Report: September-October 2022 (Courtyard Series)
Thanks for joining me for another Braemar Property Value Report. Before we begin, let’s talk seasonal business. Have you taken time to winterize your hose bibs yet? Temperatures are dropping and you don’t want to find out in the spring that you have a plumbing leak that could have been prevented. If you haven’t yet completed that task, there is no time like the present, while your local neighborhood expert is nagging you. Now let’s get to the real area of my expertise, the Braemar real estate market.
Today’s report focuses on the sales of Courtyard homes in our neighborhood. If you are not familiar with what constitutes a Braemar Courtyard home, they are located on Orland Stone, Pentland Hills and Playfair. Five detached homes share a courtyard driveway and have a strip of yard separating them from each other. I often refer to them as city homes or executive style homes, as they require the most minimal lawn maintenance and have very contemporary floor plans named the Arlington, Ballston and Clarendon. What they lack in lawn, they more than make up for in generous bedroom sizes.
During the current reporting period of September and October, there was only one Courtyard home that sold in Braemar. Details of that sale are listed below.
Right off the bat I am delighted to see that this Braemar Courtyard home sold at its list price. I am disappointed for Braemar Courtyard home owners to report that the sellers of this home gave 2.5% in seller subsidy (closing cost help to the buyer.) As mortgage interest rates have increased and home values are still trending upward as well, just not as steeply, buyers are feeling the pinch. This money likely went to a mortgage interest rate buy down to make the mortgage less expensive for the buyer. Some sellers are actually advertising incentives for mortgage rate buy downs rather than lowering their price. It is not a strategy I encourage as market value is still market value, no matter the incentive offered. If a buyer needs closing help, they will ask you for it. Price right from the beginning.
When combined with all the Courtyard home sales in Braemar dating back to November 2021, the six and twelve month data points tracked in this report are updated as seen below.
Starting with the sold price column, it is good to see that both six month values are still higher than their respective twelve month values. Home prices are not increasing by leaps and bounds, but with market conditions surrounding inventory and demand favoring sellers, values are still trending up. What I am noticing is that the gap between the six month value compared to its corresponding twelve month value is narrower than it was last report. It’s still a wider gap than I have seen in some reports I have prepared this reporting period.
Seller subsidy is definitely different than we saw last report. The average values in the last report were below one thousand dollars and the median values were both at zero. Now we have substantial figures to report in the average values and even the six month median value is registering seller subsidy. It won’t be too many more reports before the twelve month median value is reporting seller subsidy given in more than half the sales as well.
Days on market still shows the six month average being faster than the twelve month average, but not by as many days as we saw last report. More interesting to this Braemar Real Estate Agent is that the six month median is noted at thirteen days. That means more than half the sellers in six months took thirteen days or longer to sell. The increase of mortgage interest rates have changed buyer behavior. They are acting more methodically and deliberately. The days of frenzied buying in 2022 are over. Maybe it will return in the New Year if rates drop as many in the industry are expecting.
If you placed your Braemar Courtyard home on the market, priced to current conditions, you could expect it to be under contract in about two weeks. You should prepare yourself to not see multiple offers and expect that odds favor your buyer asking for seller subsidy. You can put yourself in the best position to avoid this, make the most money and not linger on the market by making sure your property creates buyer enthusiasm. It starts by getting proper preparation and pricing advice and hiring an agent, like me, that will professionally market your home. It’s hard to get excited by photos taken by a cell phone and not edited for perfection in post production, when that is exactly what your listing is competing with. When a buyer is excited about a home and doesn’t want to lose it, they figure out ways to make their offer more attractive to you.
The next Braemar Property Value Report will be out in January. Until then, I wish you all the best this holiday season. Know that if a move pops up on your horizon, my business operates every month of the year. No matter the season, it is my pleasure to help my Braemar sellers reach the top of the market. Since 2005, No One Knows Braemar Better!