RALEIGH – The Triangle property market is still hot, with the average home sales price up 14.7% YTD across the region and 18.4% YoY, according to the latest data. data from the Triangle Multiple Listing Service (TMLS).
This is much higher than the headline inflation rate of 5.4% over the same period. according to Statista.
Throughout the triangle, by the end of July 2021, 30,467 new offers appeared on the market. This is almost the same number of houses that were listed for sale during the same period of 2020 (30,469) TMLS. data show.
But the real estate market in 2020 was very different from the market in 2021.
For example, the average number of days a home spends listed as available on the open market has decreased by nearly 55% and now averages 14 days in the first seven months of the year. In Wake County, the average home sales price is up 15.2% year-over-year, and homes remain on the market for 11 days.
This is from the beginning of the year. But buying a home in Wake County in July was even more competitive, TMLS data shows, as the average selling price rose to $ 407,319 and the number of days on the market dropped to seven days.
This increase in the average selling price is 20.9% compared to the average home selling price in July 2020.
This Realtor.com study tracked two aspects of local housing markets, according to its author, Chief Economist Danielle Hale, who was interviewed by WRAL TechWire for this article.
First, the study looked at market demand as measured by the total number of unique viewers for real estate that appeared on Realtor.com and compared to the same numbers on an annualized basis.
The study found that the number of viewers viewing ads with postcode 27616 increased by 284% over last year.
The second aspect of the housing market to consider was transaction speed, which was measured by tracking the average number of days a property was listed as available and active before it changed to a contract listing.
The study found that, on average, a home stays on the market for five days with ZIP Code 27616, which is 10 days less than Metro Raleigh and 32 days less than the national average.
“Over the past year, this area has seen an influx of buyers from New York and major metropolitan areas on both coasts who are keen to see their dollar go even further,” Hale wrote in his study.
“The strong triangle economy, which boasts below-average unemployment and above-average incomes, is a strong proponent of housing demand,” Hale added in an interview.
It’s not just 27616
Despite the recent Redfin report By monitoring the state of the national real estate market, it can be assumed that the demand for home purchases across the country is declining. The Triangle property markets are not only popular in the 27616 area.
In fact, according to Hale, Raleigh’s other zip code met the criteria that put it in the “Top 10” markets tracked by the organization: 27604.
And 27,513 will also appear in the Top 50 Most Popular Markets, Hale noted, if more than one zip code per region is allowed in the dataset.
According to TMLS, the average selling price in July 2021 in Wake County was $ 407,319 and across the triangle was $ 355,000.
Roles recently took third place in the country for housing growth, and real estate across the Triangle is in high demand, with potential for further growth as companies such as Apple, Google, Invitae, Fujifilm Diosynth, Bioagilytix Labs and more plan to hire thousands of new employees to the area.
Latest data from the Triangle Multiple Listing Service (TMLS) shows that in July 2021, the average number of days on the real estate market in Wake County was seven days, and in Triangle, it was nine days.
“Affordability is key in 2021 as listing prices hit record highs across the country over the past year,” says Hale’s Realtor.com study. “Most of the postcodes on our list are significantly lower in value than the national average.”
According to the data, from January 2021 to June 2021, the average selling price in Wake County was $ 375,530. TMLS data… When July 2021 data is added to the dataset, the new year-to-date average price is $ 380,000.
Higher prices expected?
And prices can continue to rise.
At the national level Zillow economists Home values are expected to rise 5.2% between July and October and 8.1% by the end of the year. The same Zillow study predicts that the average growth in the value of a typical US home by the end of 2021 will be 20.3% higher than by the end of 2020.
According to the latest data from TMLS, since the beginning of the year, Triangle has grown by 14.7%.
“Three factors come into play here,” Hale said. According to Hale, the Triangle has a relatively young population, which is growing in size due to natural population growth and an increase in the influx of migrants into the region. The result is a healthy and sustainable demand for housing in the Triangle. “The relative affordability of homes makes buying an attractive decision, and low mortgage rates allow home buyers to stretch their housing dollars even further,” Hale said. “A healthy job market that offers low unemployment as well as high wages allows home buyers to make big purchases with confidence.”
The triangle is also generating increased interest from institutional investors and technology companies such as Opendoor, Offerpad and Zillow Offers, with triple-digit growth in the Raleigh and Durham markets, WRAL TechWire reported earlier this month. This interest stimulates demand, which can lead to higher prices, shorter time in the market, or increased competition among potential buyers.
Realtor.com’s research ranked only one zip code – which they identified as the most popular based on the methodology used for ranking – in each market in their top 50. According to this ranking methodology, the study found that zip code 27217 in Burlington was the 18th most popular real estate market and that zip code 28213 in Charlotte was the 16th most popular real estate market.
The Realtor.com study lists the 27616 area as “Brentwood,” however the Brentwood area in Raleigh is actually southwest of ZIP Code 27616 at ZIP Code 27604.