The median price home now tops out at $265,000, up from $248,000 at this time in 2017, according to data tracked by the Triangle Multiple Listing Service.
The price increases come as the home market remains tight across the region. The number of new listings has risen, but only slightly, at just 1.8 percent over this time last year.
Anfindsen’s analysis of only the second quarter found an increase in new listings as well, but the uptick was mostly due to new homes and not the “needed” resale inventory priced under $400,000, according to the TARR report.
Demand for the limited inventory remains strong, with the average number of days a home sat on the market in the Triangle dropping from 37 through June of last year to 31 this year.
The trends aren’t unique to the Triangle. Home prices continue to rise across the country, especially in large metro areas. The trend is being driven by increased demand, fewer homes for sale and more expensive labor and materials costs for new construction.
Nowhere in the Triangle are the price increases as steep as Durham County, where the median sales price has jumped more than 11 percent over last year, rising to from $228,000 to $253,000. Average days on market also remain the lowest in Durham County, where the time it takes a home to sell has sunk from 29 days to 21.
Troubles with low inventory remain in Durham and Wake counties, where the number of new listings is about the same or just below last year. That is not the case on Johnston and Orange counties, where new listings have increased more than 10 percent and 8 percent, respectively.
The Triangle still ranks favorably in housing affordability compared to its peer cities, but that could be changing in the near future. Data analytics firm CoreLogic continues to rank Raleigh and the Durham-Chapel Hill metro area as having housing markets that aren’t over-valued, but the company’s economists believe that could change in the next five years as prices and interest rates rise. “Between house prices rising and mortgage rates going up, the monthly mortgage payment to buy a house rises faster than the monthly income of local residents,” CoreLogic Chief Economist Frank Nothaft says.