All indicators show 2013 is going to be a stellar year in Raleigh and Wake County real estate. And there’ll be more good news as we move into late summer and fall thanks to more homes sold, higher median sales price for homes, increased showings and a lower unemployment rate. But interest rates are slowly on the rise and Triangle inventory levels only show an average three months of supply for homes between $125,000 and $200,000. If you’re a seller, get into the game now, and if you’re a buyer, stow away a lot of patience, because your dream house may get picked off the market in a matter of minutes.
The average selling price in Wake County is $261,322, with a change of 2.36% over 2012, while nationally the HPI (Home Price Index) is $226,000 ending in May. The S&P Case-Shiller Home Price Index was up 12.2% over the previous year, which represents the biggest year-over-year jump in prices since March 2006. For the entire Triangle, the average price of homes that sold was $249,000, which is up 3% over last year. Second quarter sales in Wake County was 4,960, a 30.49% change over last year—this is huge! We are currently outpacing last year’s sales and with this down inventory, home prices rise as demand goes up. New homes are still undersupplied, which means the market will shift soon. Thanks to this demand, low mortgage rates and more employment, you’re bound to see an increase in new construction listings.
Do you live in one of these developments where the homes are selling faster than you can put a sales sign up? They include Heritage in Wake Forest (66 closings), Wakefield in North Raleigh (57 closings), Hedingham in Raleigh (45 closings), Amberly in Cary (43 closings) and Renaissance Park (42 closings) in Raleigh.
Again, this is all great news for a seller with a move-in ready home in a favorable neighborhood. What’s move-in ready? No clutter, updated appliances as well as kitchen and bath, and neat landscaping. Sorry, lazy home seller—the train has left the station for the fixer-uppers and as-is homes.
With interest rates slowly rising, we might see some inflation, but still this is an indicator of Raleigh and Wake County’s growth. Another growth indicator is the unemployment rate at 7.4% as of July 31. Businesses are looking to relocate in the Triangle and we’re one of the most desirable areas in the country for white-collar workers. If you’re talented and productive, you’re very likely to move here without a job and find a paying gig within weeks. We’ve got superb universities, top hospitals, and technology-based companies, which all serve to drive our economic engine for now and for many years to come. Approximately 57 people a day move to the Triangle, making our region one of the fastest growing North Carolina metro areas since 1990.
Inventory is low because many homeowners can’t or don’t want to move. The economy is still uncertain and consumer confidence is not where it needs to be for the housing market to be balanced again. Another factor may be that folks don’t want to leave Raleigh because it’s such a great place!
Depending on your neighborhood and a higher selling price, the DOM (Days on the Market) on your home may remain higher than the area average of three months. For instance, in the Town of Garner, now a All-America City, $400,000 and above homes remain on the market, while $150,000 homes and below sell in three months, as they do in Wake Forest on a regular basis with the $400,000 homes.
Bottom line: when you’re interviewing for a Realtor, you want a professional who knows Raleigh, who knows the neighborhoods and who knows what’s going on in the real estate market .
Buying a home is not just a transaction for us; it’s all about the relationship we build with you.
This blog post is brought to you by Jason B. Graves and Scott Graves at Raleigh Real Estate Blog. We are part of the Triangle Real Estate Group. LIKE us on Facebook and follow us on Twitter to get the most current communication on Raleigh home prices and Raleigh inventory.
Contact Jason Graves, Broker and Neighborhood Specialist