RALEIGH – Wake County Economic Boom – From new projects, new construction, low vacancy rate in commercial and residential property, and red-hot the real estate market is far from being a summer mirage.
In fact, the economic climate in Wake County and the Triangle region is driving more than $ 30 million in real estate transactions, with 12 such transactions totaling nearly $ 1 billion in July 2021.
That’s according to the Wake County business register.
When asked by WRAL TechWire to help put these numbers in perspective, Luther Snyder, Deputy Director of the Wake County Deals Register, confirmed that 12 transactions in this “very high value segment” of the real estate market in July 2021 were the highest since April 2015. when there were 16 such transactions.
But 12 transactions in July 2021 were worth far more than any other month in a dataset that spanned nearly 15 years.
The estimated sales recorded in these 12 deals were approximately $ 975.22 million, up from April 2015. According to the analysis, the total estimate of 16 such transactions in 2015 was $ 668.65 million.
“Since January 2007, last month had the second highest number of transactions in this category, but the highest score,” Snyder told WRAL TechWire. “It is interesting to note that many of them are residential complexes, residential buildings that are in great demand.”
Eight of the 12 transactions involved apartment buildings. According to a recent market analysis provided by Apartment List, the vacancy rate in the Raleigh rental market is below 4%, from the beginning of the year to the present has been dramatic. increase in rental rates… Ownership and management of apartment complexes may well attract investors to the region.
July 2021 deals worth over $ 30 million
Rest of the market
In the main market, defined by Snyder as real estate with less than $ 1 million in transactions, there were fewer sales in July 2021 than in June 2021, resulting in a 19.33% decrease in the total value of such transactions.
The data shows 3,411 deals in this main market segment in June, but only 2,858 deals in July.
In the high-value segment, which Cinder noted includes transactions between $ 1 million and $ 30 million, there were 148 transactions in July, totaling just over $ 409 million. By comparison, in June 2021, there were 158 such transactions, totaling almost $ 380 million.
Overall, the total number of transactions as measured by transaction registration declined in July 2021.
“The number of orders dropped due to a shortage,” Snyder said. “The demand is still high and the valuation is still high, so we are still in a strong real estate market.”
The document is registered after the completion of the real estate transaction in order to protect the buyer from third party claims.
A trust deed is a mortgage instrument that specifies when a property is being financed, including when an owner refinances a property he already owns, and when a new buyer takes over the property using a mortgage to make a purchase.
Lending activity, as measured by the registration of transactions, decreased by 11% in July 2021 compared to June 2021.
But that’s not because demand is declining, Snyder said. Lending activity declined due to the low number of homes for sale, he said, noting that the average selling price of real estate remained relatively unchanged from the previous month, rising to $ 384,000, up $ 1,000 from the previous month.
Lending activity also remains strong when it comes to refinancing, despite a decline in overall lending due to the low number of homes for sale, Snyder said. There is market gapwhich began after the outbreak of the COVID-19 pandemic and still remains in the data for the last month due to low interest rates on mortgages, even if lending activity has decreased, Snyder explained.
According to Sinder, there is an increased demand in the housing market for a variety of reasons. “Strong demand indicates new companies, new ventures, new properties in the Triangle and that this is a great place to live in the country, and other factors.”