This year to date, 58 homes have closed escrow and the average sales price is $1,796,000. The average size home is 2,999 SF and the average price per square foot is $582. Homes in Talega are currently spending an average of 31 days on the market before going under contract.
Overall, home values have changed very little year over year. Values have been consistent because of the lack of inventory, not only in Talega but across the US. However, these days it is taking three times as long to get a home under contract. The takeaway from these numbers is that demand is very low due to the migration slowdown and higher interest rates.
In all markets, good or bad, there are always buyers and sellers. However, in past markets where demand dropped dramatically like this the past year, active inventory ballooned. If you had to sell your home, you dropped your listing price due to mass competition to attract a buyer. With so many people sitting in their homes with mortgage rates locked in under 3.5%, few want to move and increase their payments with the new mortgage rates of 6.5-7% unless they have a real need, or they are just cashing out of the real estate market. This is resulting in very little inventory hitting the market. Currently there are only 12 Active listings in Talega, whereas in pre-pandemic years, we typically had between 45-60 homes on the market. When the market was bad back in 2008-2011, we had 100 plus homes on the market at any given month. It was not uncommon to see 2-3 real estate signs on any given street in Talega.
It is quite a change for buyers and sellers to see homes just sitting on the market these days as everyone became so conditioned to see a home sell in 3-14 days during the pandemic. They also became conditioned to multiple offers and homes selling at or over asking. The reality is that it will take longer to sell a home with fewer buyers and sellers will have to negotiate their asking price to get a home sold. The silver lining is that with fewer choices out there for buyers, prices will sustain as we have seen in the above numbers. Additionally, the more attractive homes will get all the attention and likely sell for more than last year while something less desirable or needing updating will take longer and sell for less. Buyers are placing a high value on turnkey updated properties and are discounting those that are not. I expect these trends to continue as we head into the second half of 2023.
I have sold over 900 homes in the Talega community in the last 22 years in multiple market conditions. Each market has been different, bringing various challenges and successes. Feel free to reach out if you ever have any questions regarding your home, your rental, your home value or just any general real estate questions. I am here to help and serve the community that I care so much about.