Every homebuyer in central NC knows that Mebane’s real estate market is highly desirable, but just how hot is Mebane right now?
These four important statistics help to better understand Mebane’s current market temperature:
- Mebane’s most competitive price point is the sub $250,000 range.
- As of the day of this report, Mebane has 19 Active listings on the MLS, the lowest list price of these 19 homes is $265,000.
- Not coincidentally, the current median sales price of Mebane single-family homes is $263,000, an almost 23% increase from 24 months ago. This statistic alone shows Mebane’s drastically inclining trajectory and how its nonexistent home supply in the most competitive price range is creating intense buyer demand.
- Lastly, Mebane’s resale (existing) homes have averaged 25 sales per month over the previous 12 months (300 new households in the last year).
So how are buyers purchasing homes in this scorching seller’s market you might wonder?
Well for the many homebuyers who are not offering enough money over the list price (up to $20,000 over in some cases) to win the many multiple offer situations occurring now, they either continue their arduous home search (offering more on the next home opportunity) or they are resorting to purchasing new construction, if possible.
Mebane’s burgeoning new home sector has maintained a steady 11-12 home sales per month for the last 24 months. Add in that there have been an average of 3 vacant lot sales per month over the same time period and this paints a picture of how some homebuyers are circumnavigating the extreme lack of home supply; they are either buying new homes from developers or building custom homes on their own land.
The cost of new construction
Naturally, we should discuss the cost of new construction which has also increased rapidly over the last 24 months. Along with the lack of existing home inventory, the main reason for the construction cost hikes is due to the pandemic inducing a shortage of lumber. At the beginning of the pandemic, a few lumber mills shut down for a time period.
Coupled with this immediate lumber shortage were homeowners experiencing the need to complete lots of home projects (decks, sheds, home additions, etc.) shortly after the coronavirus stay at home order was implemented because they were now spending a ton of time at home. Add in the already packed new construction demand and we have a perfect storm for drastically increasing prices for all elements of new construction (lumber, contractors and labor).
I recently consulted with a few different local builders and they have all reported very similar numbers for the increase of lumber costs (up to a 40% increase). Hopefully, the supplies will catch up to the demand in the coming months to help stabilize prices, but there’s a very good chance that the prices won’t reduce drastically for the foreseeable future. This is mostly because of the lack of local general contractors and tradesmen will further delay servicing the backlog of buyers who want to build.
Needless to say, most of the country is still experiencing a very strong sellers’ market and there is no reason to believe that Mebane’s temperature will decrease anytime soon either. The following reports detail Mebane’s market statistics and how our little town compares to Alamance County, the rest of the state and the entire US.
If you would like, I am glad to research and create similar market reports for any neighborhood, city or county in the Triangle. Simply inquire.
Best,
-Pete
Market Activity Report
Neighborhood Report
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