- From my Point of View
- Factors Affecting the Triangle Area Housing Market
- The US Housing Market
- The Triangle, from the Triangle MLS
- Previous years Triangle Market Data
- Finally!! The market is starting to correct- September 2022
- New Construction Market
- Buying a home from companies that bought homes for cash
- Raleigh and Triangle MLS Real Estate Market Graph for 2021
- A history of the market for 2018 to 2020 will give you a better idea of how unusual the 2021 real estate market is.
- The Raleigh and Triangle Area Real Estate Market 2018 compared to 2019
- 2019 was a strong real estate market
- Marianne’s crystal ball-Triangle Real Estate Predictions
- Cary New Construction
- Chapel Hill New Construction
- Moving to the Raleigh/Cary/Chapel Hill area?
From my Point of View
What I have noticed in the past year is a noticeable dip in both property sales and listings, largely due to climbing interest rates. On one hand, we’ve got sellers holding onto their properties to keep their low mortgage rates. On the other, potential buyers are either struggling to find the right home because of low inventory or they’re playing the waiting game, hoping for a drop in rates. A significant number of my clients are relocating from different states, often with a considerable cash reserve from selling their previous homes. Their strategies vary: some make a quick buying trip and settle on what’s available, others choose to rent, sometimes with plans to build, and a few are even prepared to break their rental agreements if they stumble upon a home that works for them.
Factors Affecting the Triangle Area Housing Market
Growing Demand: The Triangle area has been experiencing a growing demand for housing due to its robust job market, quality of life, and the presence of major universities and tech companies. This demand often leads to a competitive housing market.
Tech and Education Hub: With Research Triangle Park and several major universities like Duke, UNC-Chapel Hill, and NC State, the area attracts professionals and students, impacting the housing demand, especially in certain neighborhoods.
Inventory Fluctuations: Like many areas, the Triangle’s housing inventory can fluctuate, affecting prices and the speed at which homes sell. In recent years, there has been a trend of lower inventory, contributing to a seller’s market.
Price Trends: Historically, the Triangle has seen a steady increase in home prices, but this can vary significantly by location within the region and the type of property.
New Developments: There’s been ongoing development in the area, with new housing communities and mixed-use developments, which can influence market dynamics.
Rental Market: The rental market in the Triangle is also an important factor, particularly in areas with high student populations.
The US Housing Market
In November 2023, we’ve seen some interesting trends in the U.S. housing market. New residential home sales have decreased by 5.6% from the previous month, settling at a yearly rate of 679,000 homes. This is based on data from the Census Bureau. However, compared to last year, sales are actually up by 17.7%. The shortage of existing homes for sale is giving a boost to the new-home market.
An interesting shift is happening in the median sales price of new homes. For seven months in a row, this price has been falling, and it’s now at $409,300, which is 3.1% lower than before. Homebuilders are responding to rising costs and the need for affordability by focusing on smaller homes.
The Triangle, from the Triangle MLS
Looking at the Triangle area over the last 12 months (December 2022 to November 2023), under-contract sales have generally fallen by 9.3%. The least affected were homes priced at $470,000 or higher, where sales only dipped by 4.4%.
The overall median sales price of homes has gone up slightly, by 0.8%, reaching $395,000. Single-family homes saw the biggest price increase in this category, with a 0.5% rise to $412,000. In terms of how quickly homes are selling, the most affordable homes (priced at $244,999 or less) are moving the fastest, taking an average of 26 days to sell. Homes in the $345,000 to $469,999 range are taking the longest, averaging 30 days on the market.
Inventory levels have dropped by 3.5% across the market. Single-family homes have seen the smallest reduction in inventory, with a 4.1% decrease. This translates to a 2.6-month supply for single-family homes and a shorter 1.9-month supply for townhouses and condos.
In summary, the housing market is adjusting with a mix of decreasing new home sales, modest increases in median prices, and a tighter inventory, especially in certain price ranges.
Previous years Triangle Market Data
Finally!! The market is starting to correct- September 2022
Prices haven’t come down but I am seeing more homes on the market and some staying on the market longer. My clients are able to make offers and get a house although it is still competitive. In the past year it was very hard for a well qualified buyer to get a house unless they had cash and were will willing to put up huge due diligence funds, often in the amount of the down payment and provide an appraisal addendum that the buyers would and could pay the difference between the appraised value and purchase price.
New Construction Market
New construction neighborhoods are starting to advertise inventory with no bidding. Builders are finishing homes in a more reasonable time frame than the past two years and custom builders are starting to price homes before they are complete because they are feeling more confident of pricing.
Buying a home from companies that bought homes for cash
One thing I have noticed that “buy your home for cash companies” like Open Door and Mark Spain over paid for homes using their logarithm not taking into account the difference in neighborhoods and home quality, so make sure you check neighborhood comps before buying one of those listings. The price reductions may look like a good deal but usually aren’t because the original list price was too high.
A look at 2021 Triangle Area Home Prices
Raleigh and Triangle MLS Real Estate Market Graph for 2021
A history of the market for 2018 to 2020 will give you a better idea of how unusual the 2021 real estate market is.
January 2019 compared to 2020
The Raleigh and Triangle Area Real Estate Market 2018 compared to 2019
In the video from the Triangle MLS real estate appraiser Stacey Anfindsen compared 2018 with 2019.
2019 was a strong real estate market
2019 Was one of my best years ever. One of the reasons is that the area is growing. I represented buyers from 11 different states in 2019. Four families moved from California. Other popular states for relocation were New York, New Jersey, Massachusetts and Florida. Even though inventory is low clients seem happy with the choice of homes, especially if they have time to build a new home.
Marianne’s crystal ball-Triangle Real Estate Predictions
Crystal Ball is Broken!
Moving to the Raleigh/Cary/Chapel Hill area?
If you are moving to the Triangle in Chapel Hill/Carrboro, Cary, Morrisville, Apex or Holly Springs I can help you understand the market and the micro markets and can represent you as your buyers agent. I will be happy to send you videos of the home/neighborhood. This is especially helpful if you are considering new construction because the online info is limited.
Call Me! Marianne Howell Wright 919-274-4365
Marianne Howell Wright, Triangle Area Real Estate 919-274-4365 [email protected]