The Triangle real estate market has been on a huge rise for the past few years. We’ve seen some pretty extreme numbers—as high as 15% growth! But recently, the demand for homes has increased without an equal increase in supply, so the market has begun to plateau a bit.
Here’s what else is in store for the Triangle real estate market in 2019.
Supply is Low—It’s a Seller’s Market
Supply of homes is low… which means it’s a great time to be a seller, but maybe not so much a buyer. It doesn’t mean you won’t or can’t find what you’re looking for, it just means that if you do find a good home, the sooner you make an offer, the more likely you are to get it.
The Market’s Still on the Rise
Ok so maybe we aren’t about to see a 15% increase in home sales, but there’s still a 2.9% increase predicted for Raleigh in 2019. It’s the same for Durham, with price increases at 3.9 and 4.1%, respectively.
The Triangle Itself is Healthy
What makes the Triangle market so hot (even when it’s cooling off)? Well, for one thing, job growth. Job creation in the Triangle is growing at two times the national pace, while unemployment is nearly a low of 3%.
Affordability Could Become an Issue
Increased demand typically means rising home prices. Great news for sellers, but not so much for buyers, especially first-time buyers. Rising prices could push lower-end buyers right out of the market, further slowing the market.
Rising Mortgage Rates Aren’t Helping
Another factor bringing the market down: rising mortgage rates. October’s rates of 4.83% might not seem like that much… until you compare them to the 3.9% rates we saw last October. Translation: a $325,000 house will cost you about $140 more per month.
Prices and interest rates may be rising… but fortunately, so are wages. In fact, weekly wages in the Triangle have risen 3.9% over the past three years. It doesn’t entirely offset the rising home prices, but it definitely helps.
Overall, the Market is Still Strong
The market may be tapering off a bit, but it’s definitely still among the strongest markets in the country, as well as much more favorable than some of the other top markets in the area. When you compare it to some of the million-dollar-plus markets (like the Silicon Valley), a $259,000 average sales price doesn’t seem so bad!
It’s a Good Time to Be a Buyer or a Seller
The market may be favoring sellers, but that doesn’t mean it’s a bad time to be a buyer. And in fact, it’s better to be a buyer now than when the rates have risen even higher. And for sellers… well, listing your home shouldn’t be a problem any time you decide to sell.
Are you thinking of buying or selling a home in the Triangle? Then it’s time to contact Marlo Wells. I’m here to help my buyers explore the area and locate the perfect home for sale, and my sellers get their home ready, price it right, and list with ease.