This has been a rollercoaster of a year—a tumbling economy, nationwide business closures, plummeting interest rates… the surprises keep coming! But one thing sure hasn’t changed: real estate is hot in the Raleigh area. If you’re thinking about buying or selling soon, there are a few things you might want to know about the Triangle real estate market this summer.
Your Summer Triangle Real Estate Market Update
Despite falling sales in March and April, the Triangle market has made a speedy recovery, thanks in part to rock-bottom low interest rates and steady buyer demand. If you’re thinking about buying or selling a home in the Triangle area, here’s what you need to know about this summer’s real estate market.
Interest rates are historically low
All-time low interest rates are driving the real estate market right now. In March, mortgage rates first tumbled to record lows… and have kept falling since then. Today, rates hover around 3%—which is a big difference from the 4.55% they were in August of 2018 and even 3.62% in 2019.
These record-breaking interest rates have enticed many interested buyers to make a move despite economic uncertainty and social distancing restrictions.
Inventory is very low
When the Raleigh area largely shut down in response to the COVID-19 pandemic, many buyers and sellers chose to push pause on their real estate goals. Low interest rates have brought buyers out of hiding, but many sellers have yet to relist their homes. As a result, inventory has dipped very low—about 37% lower than this time last year!
High buyer demand and low inventory have made the market very competitive for buyers but favorable to sellers. In fact, homes sit on the market an average of just 27 days before being sold!
Median sales prices are on the rise
High buyer demand and low inventory also often lead to climbing price tags, which we’re seeing here in the Triangle—median prices are 7% higher now than in July of 2019. This is actually good news for both buyers and sellers; sellers can expect to gain a good amount of equity in a sale, where buyers can expect strong home values after making a purchase.
Much of real estate is done online
Even before the pandemic, many aspects of the buying and selling process were done online. Most buyers start their searches online. Most lenders allow for uploading paperwork to a secure online database. Many lenders and agents have online signatures available.
But now that social distancing measures are still in effect, agents, lenders, and other professionals have taken measures to streamline the process as much as possible. Nowadays, you can tour homes, sign paperwork, and even close without ever leaving your living room!
It’s a good time to make a move!
The bottom line is that despite ongoing uncertainty over the COVID-19 pandemic, real estate in the Triangle has remained strong. It’s an excellent time to both buy AND sell. Sellers stand to face low competition and sell quickly. Buyers, while facing increased competition, can take advantage of historically low interest rates, saving potentially tens of thousands of dollars over the duration of the loan.
Ready to Make a Move in the Triangle?
Are you thinking about making a move in Raleigh, Johnston County, or the Triangle area? I’d love to help! Contact me, Marlo Wells, to find out more about what I can do for your home buying or home selling goals. Give me a call and let’s chat!