The latest are numbers in for our real estate market and I’m excited to share them with you today. In the Triangle Area, new listings are down about 2.9% year to date. At the same time, inventory is down 8% and the median sale price is up 3%.
The market has been pretty good so far this year, but there are indications that it’s slowing down. A healthy inflation rate is about 2%, but we’re a little below that now. A certain pressure is being applied on the Federal Reserve to decrease interest rates right now to stimulate the economy.
In the Chapel Hill market, listings are down, closings are down, average prices are up, and days on market remain flat at about 39 days. We currently have about 3 months of inventory right now—a low mark that puts us in a seller’s market.
The indicators in Durham are a little different. This year, listings are up, closings are up, average prices are up, and the average days on market is only about 23 days. They have about 2 months of inventory.
Planning in advance is easier with a local real estate expert.
If you’re thinking about selling your home anytime in the near future, it’s smart to plan in advance by reaching out to a local real estate expert early in the process. This will help you plan accordingly, prepare your home, and get the most bang for your buck when it comes time to sell.
If you have any questions for me about the current market or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
When you are saying that the Cary North Carolina market has a low inventory it depends on what you are comparing it too. Are you comparing it to the number of homes on the market last year at the same time? Are you comparing it to homes in a price range? Or even homes in a certain area?
According to Reuters, “U.S. home sales fell more than expected in December as the supply of houses on the market dropped to a record low, pushing up prices and sidelining some potential first-time buyers”. They also said, A shortage of affordable homes for sale will frustrate the ambitions of many first-time buyers. First-time home buyers are forced to stay in rental market longer than planned. This information was provided by Matthew Pointon, property economist at Capital Economics in New York.
“We expect little growth in sales in 2018, given tight inventories,” said Gregory Daco, chief U.S. economist at Oxford Economics in New York. Affordability is crimped by rising mortgage rates, posing an additional headwind to sales.
The Cary North Carolina market will fluctuate depending on price and area of the property. A 6 month supply of property often considered to be a balance market by that National Association of REALTORS®. When homes sell faster than 6 months it is considered to be a seller’s market. Likewise, when homes take longer than 6 months to sell that is considered a buyers’ market.
Everyone knows that supply and demand affect price. When the so called “Housing Bubble”, the demand decreased so much that the supply increased to 4 million houses or more. The prices of homes took a beating. Also, the increased inventories of foreclosures, short sales, bank refusing to loan and the home building industries lack on new housing starts all contributed to very low home prices.
“New construction has showed signs of perking up, but remains well below estimates of demand,” said Aaron Terrazas, as senior economist at Zillow. “More importantly, builders face rising labor, materials and land costs making it difficult to build at a price point attractive to entry-level buyers”.
Since that time the economy has improved, and banks have started to lower requirements, interest rates have stayed low and foreclosures have slowed. Inventory nationwide is reduced to approximately 2 million homes. When demand is at a constant level and inventory is reduced, home prices trend upwards. This is because there are the same number of buyers trying to buy less number of homes.
Mortgage rates are now climbing each week in 2018 and consumer confidence level is going up. This means that Cary North Carolina market is having an increase in demand. Buyers are now noticing that home prices are increasing.
Spring is almost here and that is the normal busy time of year. Home prices are going up and inventory is dropping. So it is time to decide what you want to do before it is too late.
Real Estate Market Update: Sales prices in Chapel Hill, Durham and Cary are on the rise. The three-year trend is excellent with median prices in Chapel Hill and Cary around the $400,000 mark. Houses in much of the rest of the Triangle, including Durham, are more affordable. Median prices in Durham, NC are about $250,000. Nationally, housing affordability remained flat for 2017.
Real Estate Market Update: Days on Market (DOM) have been are still are amazingly low. This means that overall houses are selling fast. In January, however, DOM have increased a bit. I think this is primarily due to a slightly slower start to the season and the weather. To be specific; in July 2017 Average DOM were 13 in Chapel Hill, 5 in Durham and 6 in Cary. In November 2017 this increased a bit to 33 in Chapel Hill, 8 in Durham and 10 in Cary.
In January, this has stretched out a bit more to 36 in Chapel Hill, 10 in Durham and 14 in Cary. I expect to see these numbers come down as the season heats up.
Real Estate Market Update: The supply of inventory is incredibly low. I don’t remember a time when inventory was this low. In Chapel Hill there is less than 3 months of inventory and in Durham and Cary there is less than 2 months of inventory. This is truly an excellent time to sell. If you have been sitting on the fence, with inventory low, it is a sellers market. Prices are rising. With interest rates still low, buyers are moving on the opportunity before prices rise further.
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Real Estate Market Update — The National Association of Realtors Chief Economist Lawrence Yun says that “the national housing market is nearly stalled due to a lack of supply.” This theme resonates in our Triangle real estate market, although we are experiencing fairly robust activity, despite inventory challenges.
North Carolina is now the 9th most populous state with 4 Triangle Counties among the fastest growing in NC since 2010: Wake (+16%), Chatham (+14%), Durham (+13%), and Johnston (+13%). The Raleigh-Cary Metro area population grew by 2.5% in 2016 alone, and is the 14th fastest growing region in the US. The Durham-Chapel Hill Area grew by about 1.5% in 2016.
Fueling this growth is the general migration pattern in the US from North to South. Newcomers are attracted to our climate, employment opportunities, affordable housing, quality of life, healthcare, and by their adult children who moved here over the past 15-20 years – “trailing grandparents”.
Immigrants and investors have also contributed to growth in our area, including sizeable Mexican, Asian, and Indian populations. One less obvious factor influencing the market, especially at the entry level, are the increasing number of investors who are flipping homes, and who now account for nearly 6% of purchases nationwide.
All of these factors are driving the robust demand and appreciation impacting our real estate market, so let’s look at an overview of the trends and statistics of the Triangle, and then try to unpack some of this data for several of our submarkets such as Chapel Hill-Carrboro, Durham, Chatham, and Cary-Apex.
Triangle Real Estate Market Update
We are now in a strong “Seller’s Market” in the Triangle due to increasing demand for housing, decreasing inventory of homes, and historically low interest rates. The average “Days on Market” is now under 2 months, with about 2.5 months of inventory in pre-owned homes. New construction inventory is 3.5 months, with 1.5 months of inventory for townhomes and condos.
With strong demand for housing coupled with low inventory, appreciation is gaining ground in the Triangle, ranging from a low of 4.2% in Chatham County to 15% in Durham, with 5-6% per year appreciation for most of the remaining Triangle regions.
Average median sales price is up 6.5% over the past year (Sept 16- Sept 17) to $264,000, and overall sales were up 4.5% for the same period. The strongest sales volume has been for 4+ bedroom detached homes over $300,000. However, the fastest pace of sales has been for homes under $200,000, selling in just under 30 days.
Nationally, new homes are being built at only half the rate needed to keep up with demand. Rentals and apartments are a major focus of the
national new construction boom.
“Metrostudy’s New Construction Survey” of the Triangle housing market shows that 2,547 new homes were started in the first quarter of 2017, up 4.3% from 1Q16. Annual housing starts through the end of 1Q17 were 8.5% higher than for the same period in 2016, and annual closings for new construction were up 11.5%.
The average sale price of a new home was up 15% with the most popular price point in the $300K – $399K range. Lot sales increased by 23% to 12,050 units for the year ending 1Q17.
Chapel Hill – Carrboro Real Estate Market Update
Year to date (Sept 2017), listings and closings are down 4% an 1% respectively, compared with the same period in 2016. There are 3.7 months of inventory now, and the average Days on Market is 54. Median sale price is up 0.6% to $360,000 with sellers seeing 97.4 % of their original asking price. There seems to be downward pressure on prices from new construction and affordable alternatives in neighboring areas such as Chatham, Hillsborough, and Southwest Durham.
Southwest Durham (Southpoint Area) Real Estate Market Update
There were 5.7% fewer listings in 2017 and 2% fewer sales, but the median price increased by 6.7% to $240,000, and homes sold for 99.2% of asking price. There is only about a month of inventory available, so the pace is quick for sales in Southwest Durham, especially in “tried and true” subdivisions such as Woodcroft, Twelve Oaks, and Hope Valley Farms. Some higher end homes such as those in Colvard Farms have longer market times and more price concessions to reach a sale. Drees, Toll Brothers, Terramoor, and Pulte all have new home communities active in this market.
Durham (Overall) Real Estate Markete Update
Again, inventory is down to 2 months supply with fewer new listings coming online, and 4% more closings over the same period last year, so demand is there. Prices reflect this tight supply of homes and are up 9% over the past year, with the median home price at $229,000. Days on market is down to about a month. The most active price point is under $399K. Entry level homes within walking/biking range of downtown are often under contract within days and with multiple offers due to the rejuvenation of downtown Durham.
Cary-Apex-Morrisville Real Estate Market Update
This region has been very active with high demand and increasing prices, with new construction balancing out some of that demand. Bella Casa subdivision in Apex has closed 33 new homes averaging $509K just in the third quarter of 2017. Lochmere, Cary Park, and Kitts Creek had strong resales of over 20 homes each in the third quarter of 2017 with an average home price close to $400K. 4,100 of the 5,400 homes listed this year to date have been absorbed with an average of 31 days on market. Cary and the Apex-Holly Springs Area continue as popular destinations for transplants seeking affordable, newer home options that are close to Raleigh and RTP.
Chatham County Real Estate Market Update
14% more homes closed in Chatham County this year to date (Sept ‘17) compared with the same period in 2016, with the median sales price up 4.5% to $365,000. There are over 450 homes currently for sale in Chatham with an inventory of about 4 months and “Days on Market” of 2 months. Much of this inventory is new construction such as Briar Chapel (about 2 yrs. inventory left), Chapel Ridge, Westfall, Legacy at Jordan Lake, and so on. Prices have rebounded significantly, but not completely, from lows in the 2008-2010 years.
Chatham is still an affordable alternative compared with some other regions of the Triangle, and remains a desirable destination for “tax refugees” and “downsizers” from Chapel Hill-Carrboro, Cary, and Durham. Retirees and transplants also abound, as in Fearrington Village and Briar Chapel.
Chatham Park is the “800-pound gorilla” in this room with 7,100 acres of mixed use community, and 60,000 potential new residents in 22,000 homes. Construction of homes will reportedly begin in North Village near Bynum by early 2018.
Looking to buy a house or sell a house this year? There’s a good chance you know the housing market is booming, pretty much all over the country. East coast, West coast; no matter which side of the country you’re living on, there’s a good chance the housing market is healthier than it has been in years.
But how do you tell if a housing market is healthy, or not?
At a very basic level, you can understand the real estate market using supply and demand as your metric. When inventory is low and too few houses are for sale, the prices of houses will rise. If there are many houses for sale on the market, and the inventory exceeds the demand then the prices will fall to attract more buyers.
When these two features are balanced, home prices sell closer to their true value. There aren’t any obstacles in play, like there typically are when the housing market is unhealthy. Some obstacles include bidding wars and insanely high prices. However, they’re not the only ways to assess the housing market.
Ways to Check Your Local Housing Market’s Health
Assessing the health of your local real estate market is easy, especially if you do a little research.
How long have homes been on the market?
When homes have been on the market for over 90 days, you can believe that’s a sign something may be wrong with the property. Alternatively, there may be something wrong with the local market, suggesting the price on the home is too high for that market.
Check in about the median time homes are on the market for. This is something you can research yourself, or discuss with a real estate professional.
How are the prices?
If prices are falling and rising rapidly, you can bet there are issues with the health of the local real estate market. Quickly rising and falling prices can indicate the market is out of balance (remember, supply and demand!).
An annual increase of say, 5 percent is healthy for homes on the market. Increase or depreciation above or below that level can indicate an imbalance of the market.
What about foreclosures?
Foreclosures are a sure-fire way to diagnose an unhealthy real estate market. This can drive down home prices, and a healthy real estate market thrives on limited foreclosures.
Each housing market was diagnosed based on stability, risk, ease of sale, and the affordability of the area. The study, done by SmartAsset, scored Durham at a healthy 82.71 thanks to those factors. Raleigh scored 81.21.
So let’s talk about the factors that helped SmartAsset score the housing markets of the United States. How long people lived in their homes, and the number of homeowners with negative equity contributed to the stability factor. Risk is calculated by percentages of homes decreasing in value. Ease of sale is accounted for by data on the average time a home for sale hangs out on the market. The shorter the time, the better! And finally, affordability is assessed by monthly home-owning costs, as well as income in each city or county.
Other North Carolina cities made it onto SmartAssest’s healthy housing market list. Charlotte ranked No. 21, Winston Salem ranked No. 47, and Greensboro ranked No. 48. These cities represent healthy housing markets, and indicate North Carolina has a good real estate market.
We Can Help!
If you have been thinking of relocating to the Triangle area, you will definitely want to consider putting down roots in one of these cities! Visit Real Estate Expert’s web site to learn more about Raleigh-Durham real estate.
Give us a call at 919-813-6449or send us an email to [email protected]to find out more about living in the Triangle, and visit realestateexperts.net to view current homes for sale in the area.
Spring has sprung. Alongside of blooming flowers, warmer temperatures, and the promise of Summer comes the busiest home-selling and home-buying season of the year. Buyers are more likely to shop during this time period, thanks to more daylight and the pressure to get a new home situated before the next school year starts.
If you’re looking to sell your home, there are three recent developments that ensure this spring is a unique, and promising, time to do so quickly. What’s more? You’re likely to get the most for your money as a buyer and seller. Let’s look at Triangle home updates for spring of 2017.
Mortgage Rates Are Stable
Last July, mortgage rates were at a low of 3.41%. The presidential election, like it typically does, shakes the housing market briefly because of impending law changes, administration direction, and uncertainty in the face of a new President. The 30-year fixed mortgage rate hiked up after the election, reaching a high of 4.31% in December 2016.
Despite the increase in 30-year fixed mortgage rates, they’ve stabilized over the past few months which keeps them near historical lows.
If you’re looking to buy a home, this spring is an exceptional time. The current low mortgage rates are advantageous because they allow you to afford more bang for your buck. You’ll be able to afford a more luxurious home, at a better price.
Employment is Up
Throughout the last year, the number of jobs has not only increased, but it has increased in a big way. With 2.3 million new jobs introduced in the last year, the economy reflects business and consumer confidence. The United States Department of Labor Statistics reported 235,000 new jobs in February 2017 alone. As the economy reflects the cyclical nature of employment and the real estate market, new jobs and the decrease of unemployment affects the housing market in a healthy way.
Lower unemployment means less crime, less crime means higher property values. People feel a surge of confidence when new jobs open; unemployment in your area can lead to issues buying and selling homes. Fortunately, employment is up, new jobs are being created at a consistent basis.
Inventory is at an All Time Low
Mortgage rates are nearing a historic low, as is the inventory of homes. February 2017 saw a 17.9% year-over-year decrease in the number of homes on the market. March 2017 marks the 100th consecutive month of year-over-year declines. This trend dates all the way back to October 2008.
There are fewer houses than ever on the market in the Triangle, right now. Some homes are selling within hours of being on the market. Since the market has an all-time-low inventory, prices are being driven up, as is competition. This is good news for a seller, at least!
How Do These Spring 2017 Updates Benefit You?
The demand for homes in the Triangle is through the roof. Due to the growth in jobs, low and stabilized mortgage rates, and consistent high-ranking of quality of life and education in the area, the Triangle will likely see an even higher and stronger demand for homes.
Take a look at this statistic: in February 2017 homes sold, on average, within 68 days on the market. This is compared to 75 days on the market in February 2016.
Selling your home this Spring means taking advantage of the strong demand and low inventory. You’re likely to see prices increase this Spring, and you’re likely to see top price for your home. On a national scale, February saw a 6% year-over-year rise in home prices. This definitely agrees with the trend around the Triangle, too.
Spring 2017 is a wonderful time to sell your home if you’ve been considering it for some time. This is a good opportunity for buyers to take advantage of low mortgage rates, too. If you’re curious to know how much your home is worth in the current market, try our home valuation tool.
We’re Here to Help
Whether you’re looking to buy or sell this spring, Real Estate Experts can help. Homes all around the Triangle are coming onto the market. Several amazing homes have just been listed, too. Loaded with listings hot off the press, Real Estate Experts is ready to help you find your next home.
Our seasoned team members work together to provide outstanding service to our buyers and sellers, while developing a unique partnership to better care for our clients. If you are looking to buy or sell, let one of our top realtors assist you today. Give us a call at 919-813-6449or send us an email to [email protected]to find out more about living in the Triangle, and visit realestateexperts.net to view current homes for sale in the area.