Has The Market Found Its Ceiling?
July Sales Match June – Pending Sales Down – Newly Available Stable
Summer sales remain strong in Trilogy. Fourteen sales closed. Buyer interest in Trilogy remains strong although as August began, there were only 11 “pending” sales, about half of expectations. The number includes two new construction houses and a 12th was pending inspection.
Meanwhile, Shea has seven remaining houses to sell and could conclude its activity by the end of the year.
Leveling Sales in Trilogy at Redmond Ridge
Fourteen homes closed in July, all of them resell. Here are the statistics:
July Closings in Trilogy at Redmond Ridge
$339,950 ARCH Home
Bold Face Listings: Sold by Devin Sanford Homes – “The Elephant at Work”
August’s Foundation Wavering
As July sales ended there were 12 Pending sales in Trilogy, 1 awaiting inspection and 2 new construction. Prices can’t be quoted until after closing. Here’s the list:
3 Hemlocks, 1 new construction
3 Unions, 1 ARCH, 1 Pending Inspection
1 Nice, new construction
Two Pending were handled by Devin Sanford Homes – “The Elephant at Work”
Now Available In Trilogy at Redmond Ridge
As of August 1, there were 15 homes for sale in Trilogy. That’s number has stayed about the same all year. What has changed is Shea has added seven spec houses to the list, the most in quite a while. When they are gone, Shea’s building concludes. Here’s what’s available and for how much:
$293,504 ARCH Home
$419,900 SHORT SALE
*+7 New Construction
Some footnotes about what’s available now:
*Shea is asking premiums for its seven spec houses, the last of the developer’s 1,523 houses in Trilogy.
There can be significant differences in prices for the same model because of a home’s condition, upgrades including appliances, deck expansions and improvements, proximity to the Cascade Club, golf course lots and, of course, the view.
You and your real estate broker can make significant differences by staging your home. Professional staging is a significant advantage. Furniture and accessories “showcase” your home by leading a buyer’s eyes and heart to the best features of your interior. Don’t overlook the patio or deck.
“Staging is part of Devin Sanford Homes’ service. The Elephant at work.”
Have we reached the Peak of the Market?
I believe that now is a crucial time to sell a house if you want to hit the peak of the market. Check my past articles and, humbly, you’ll find that my prognostications have been accurate. Ten years’ experience in a community is advantageous.
Interest rates are rising but remain well below those of just a few years ago. Economists quoted by media suggest the cost of money might become even more expensive. I’m going step out on limb. I think we’ve hit our peak. Let’s look at some examples.
In the last two months we’ve seen several Union plans sell, all quickly and all with full-price offers. One spectacular Union with a view fell $5K short of the $460K full price contract when the appraisal came. This suggests the market does have a limit. Another green belt Union strategically accepted a contingent offer and ultimately closed for $464K. A third lovely interior Union brought $451K and a fourth, which backed up to two story house, brought $440K in two days. Yes, they all sold quickly but it seems the pricing has reached its max for the 1,550 square foot duplex.
There were two other resells that fell short come appraisal time. This is unprecedented in such a short span and suggests enough is enough. Once it finally came, it seems the speed of the recovery may be too much for the appraisers to get their minds around.
Are bidding wars back?
A Broker listed and sold a Hemlock on the 17th Fairway by setting up what amounts to a bidding war. It’s the second time I’ve seen this in Trilogy, A house is offered somewhat below its true market value and the broker announces offers will be taken for the next few days. The low price creates a flurry of interested buyers to visit the home and some become emotionally involved and want to make an offer. Knowing others will, most likely, be making offers too, the buyers offer more than asking price, often using an escalation clause. An escalation clause is an addendum attachment with the offer that says the buyer is willing to pay, for example, $500 or $1,000 over any other offer up to a maximum price. Auctions are illegal and to me, this seems an awful lot like an auction. Many brokers agree and there could be some legal issues about that approach to selling in the future.
The house sold at what I believe was a fair market price, $772,600 after a first offer of $729,000. That’s probably about as strong a price even for a golf course lot that can be expected. Being a cash sale, there was most likely not an appraisal.
More and more agents are thinking Trilogy is a fun and easy place to list homes. A very few of us who have worked in this community for years understand it’s not picking low-hanging fruit, it’s very hard work and the application of skill and experience. Prepare completely, present professionally and position pricing properly. That’s the way of the elephant and why our last eight listings all had full price offers in short order, including a home around $800K in the neighboring community of Tuscany.
Selling vs. Serving
The elephant ears constantly hear about one broker or another claiming to dominate the market, to sell more houses than anyone else. That all speaks to working for commissions. Our concern is how to be best in serving our clients. The numbers that count are the dollars for our clients when they close.
At DevinSanfordHomes.com, we take very seriously, presenting the facts, no matter what they are. Trilogy members are a very intelligent group of people. We trust you can figure out who has a calling to serve and who has a flashy car. We’ll just continue telling it how it is. We’re sure you’ll have no argument there.
Some Private Thoughts
Some folks think about selling but wonder if it really is the right time. That’s a very personal decision, one that I wouldn’t presume to influence. Only they and their families can. I can offer economic facts and guide them to resources that can help them reach the best answer for them and theirs. I’m always delighted to just sit down over coffee and share thoughts about real estate and the market. I look forward to such opportunities. It’s a chance to listen and better understand how clients, and maybe potential clients, think about their homes and futures. That’s a very real part of my job.
The most important part of my job is working with people so that if they do choose to sell, they can be sure that my experience, skills and energy – even elbow grease – is there so they can have a home that is well-prepared to show, that is well-presented and advertised and that is well-priced for an expeditious sale.
That’s the job of a professional. That’s what the Elephant does. Prepares, presents, and expertly positions price.
If we may serve you in any way, just let us know. I can be reached directly at (425) 501-8424 or [email protected]
Thanks for sharing your time with us. We value it.
Devin & Bridgette
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(all data current as of 10/5/2022)
Listing information deemed reliable but not guaranteed. Read full disclaimer.