Braemar Townhouse Report: January-February 2023
On this windy March afternoon in Braemar, I am finding it quite cozy to sit in my home office and prepare this Braemar Townhouse Report. As usual, it is the one that brings up the rear in my series of Braemar market reports. This particular edition focuses on the sales of Braemar townhouses in January and February and looks back at the updated six and twelve month market markers tracked in this report.
During the first two months of the year, there were six Braemar townhouses that sold. Details of those sales are listed below.
I was very happy to be the listing agent of 10158 Pale Rose Loop that you see in pink text. While it was an end unit, it did happen to be on the smaller side of what was available at the time. Getting them multiple offers and selling so quickly when we had just come off a slower paced year end, was a great result. They would have sold for more had the appraiser agreed with the original contracted sales price. Appraisers definitely hold the purse strings if you don’t have buyers who are willing to waive appraisal.
Of the six sales, only two sold above list price. Both gave seller subsidy (closing cost assistance to the buyer) and were both under contract in about a week. Three townhouses sold at (or just a hair under) list price. Only one sold below list price and it is no surprise that it was the sale that took the longest to happen. It is also the only townhouse sale to give no seller subsidy.
Combining all these sales with the Braemar townhouse sales going back to March 2022, the six and twelve month data points in this report are updated as seen below.
For the second report in a row, both six month sold price values are down compared to their corresponding twelve month sold price values. However, the gap is smaller when you compare to last report. Our Braemar townhouse market definitely softened up a bit in the latter half of the 2022, but all indications are that it is recovering from that momentary change in buyer behavior. Between having the listing on Pale Rose receiving multiple offers and helping buyers in the market in February in crazy multiple offer scenarios, I can assure you that buyer behavior is back to what we saw in 2020 and 2021. Buyers are making fast decisions and throwing everything they have at an offer to win. This means waiving contingencies and going above list price.
Seller subsidy shows higher amounts in both six month values when compared to their respective twelve month values. These numbers have gotten higher since last report, which really isn’t unexpected. With the steep increase in mortgage interest rates, and no noticeable decline in sales prices, buyers were having major affordability problems. Those hit worst have been first time buyers with no existing equity to roll into their next home. Buyers who have saved up their resources are the ones able to waive seller subsidy requests and compete in the conditions we are seeing right now.
Marketing time is still longer in both the six month values compared to their twelve month counterparts. In fact, these marketing time values are nearly identical to what we saw last report. I suspect this will be changing in future reports based on current market activity with homes going under contract so quickly.
If you placed your Braemar townhouse on the market, priced to current conditions, you could expect it to be under contract in a week or so. Don’t be surprised by seller subsidy requests. The best way to avoid them and get the most seller favored terms is to lift buyer enthusiasm. Getting buyers excited about your home by pricing right, preparing your home for market to show as move-in ready as possible and having it professionally marketed have always netted the best results. Relying on market conditions alone is not a recipe for hitting top of the market.
The next Braemar Townhouse Report will be out in May. Between now and then, or anytime you want to know your townhouse’s value in our current market, get in touch with me for a personalized consultation. It is never too early to get direction on what projects should be done for the optimal market reaction when you sell. Helping my Braemar sellers reach the top of the market is my mission. Since 2005, No One Knows Braemar Better!
Chris Ann Cleland
Associate Broker, Licensed in VA
Long & Foster Real Estate