Braemar Townhouse Report: July-August 2022
Fall is settling in around the Bristow area and soon we will be delighting in a blaze of colors. The fall real estate market is a busy one for any agent who wants to be busy. It is not uncommon to have agents talk themselves out of even looking for business during the fall and winter months because they believe it is slow. Not this Braemar Real Estate Agent. I have known for a long time that our market is year round and that some of the slower months can be the summer months. Our year end market is a powerful one.
In this edition of the Braemar Townhouse Report, the focus is on the sales from July and August. Braemar townhouses, for the purpose of this particular report, are traditional townhouses with three levels and a back yard and are not condo ownership.
During the months of July and August there were only four Braemar townhouses that sold. Details of those sales are listed below.
Having only four townhouse sales to report in Braemar for the last two months of the summer selling season is profoundly odd. Since starting this report in 2005, this is the least amount of townhouses sold in Braemar during July and August. Before this, the year with the fewest townhouse sales during the same months was 2007 with five. My suspicion is that many Braemar townhouse owners that would be move up buyers, looking to get into a single family home, are daunted by the rising mortgage interest rates and simply staying put. It certainly isn’t a problem with buyer demand. Buyers are still outnumbering available inventory.
When these three sales from our current reporting period are combined with the Braemar townhouse sales dating back to September 2021, the six and twelve month data points that are tracked in this report are updated as seen below.
Sold prices are still healthy and show increases in value when comparing the six month average and six month median sold prices to their respective twelve month values. Are we seeing rapid equity growth like we did in 2020 and 2021? No. It is steadying out and becoming a more normal growth rate.
Seller subsidy (closing cost help to buyers) shows values in both of the average values. As mortgage interest rates climb and home prices also continue to increase, buyers are faced with affordability issues. First time buyers in particular are the ones hardest hit by these factors and are starting to request closing cost help to buy down their interest rates. The sale that closed on July 28th is the first example in a very long time of a buyer getting about three percent of the sales price in closing cost help. Looking the the median values both at zero, odds are in a Braemar townhouse seller’s favor that they would give nothing seller subsidy. More than half of sellers in both time frames gave none. Unfortunately, when looking back to June 20th this year, out of seven sales, four gave seller subsidy and only one of those was a low amount commensurate with I would expect to be a repair credit. The most recent sales are definitely showing an increased occurrence of seller subsidy.
As for days on market, the marketing times are still fast. Both six month values are faster than their corresponding twelve month values. Given so little inventory for sale, this is a trend that is likely to continue.
If you placed your Braemar townhouse on the market, priced to current conditions, you could reasonably expect to be under contract in two weeks, possibly less. Buyers are acting more deliberately now and we are not seeing the frenzy of multiple offers and waivers of every conceivable contingency anymore. You would be lucky to have two offers at one time. And you should not be surprised to see seller subsidy requests. These are still avoidable if your home is priced right, well prepared and professionally marketed. These are all things that drive buyer enthusiasm. One enthusiastic buyer is all you need.
The next Braemar Townhouse Report will be out in November. By looking at the MLS, I suspect I will have a lot more sales to report. And if you have been considering moving up from your own townhouse, there is a lot more to consider than mortgage interest rates. A lot of Braemar townhouse owners are sitting pretty on a pile of equity. That equates to large down payments on your next home. And as the market has become less frenetic in pace, it has become easier to navigate a sale and coinciding purchase.
Reach out and schedule your free consultation. It is never too early to start the conversation and become a well prepared seller. I can even connect you with loan programs that are being offered below market, though they are limited in availability. It never hurts to explore your options. When are you ready to make the move, I will be here. Since 2005, No One Knows Braemar Better!
Chris Ann Cleland
Associate Broker, Licensed in VA
Long & Foster Real Estate