How would you characterize the Triangle’s real estate market?

It’s truly unprecedented. The current market is incredibly prolific and active in ways I never expected to see. I’ve been a top agent in Raleigh since 1993, and the growth has been remarkable. In 2020, our closed sales amounted to $462 million. Surprisingly, in just the first quarter of 2021, we closed nearly $710 million. Before the pandemic, listings would typically stay on the market for about 93 days, but now it’s down to merely three days. Across the entire Triangle area, spanning multiple counties, including Fayetteville and the coast, there are only 2,100 active listings. To put it in perspective, for a healthy market, we’d need between 12,000 and 14,000 active listings. In Wake County, which boasts the highest annual sales in the Triangle, there are a mere 1,040 active listings, while a healthy market would require around 11,000 considering our annual sales average of 54,000 homes through the MLS.

What can the average buyer do to make their offer stand out in such a competitive landscape?

It’s a challenging landscape indeed. There’s a spectrum of strategies, from escalation clauses to heartfelt letters, sharing the emotional connection to a property. However, what often sets an offer apart is the due diligence money, which becomes nonrefundable from day one. Advising our clients to deposit between 5 and 20% is common. Demonstrating genuine interest is key, as it’s not always the highest offer that prevails. Interestingly, most homes are currently selling for more than their appraised value anyway.

What is Jim Allen Group’s outlook for the near term?

We’re tracking to surpass $1 billion in sales for 2021, which would be a monumental achievement. In 2020, our sales were a historic high for North Carolina, and in 2019, we achieved $400 million, topping the state’s sales figures. Presently, we’re averaging $4 million in daily sales. However, the challenge lies in closing these deals due to the rapid pace of home sales. The market’s momentum is sustained by the persistent shortage of inventory. In 2020, we experienced around 11.2% appreciation in housing prices. This year, we anticipate surpassing that in certain areas. The ongoing shortage is likely to persist, impacting the market dynamics.

You may also be interested in...