Tag Archives: Triangle Area

Has the Triangle’s housing market plateaued?

The triangle has enjoyed years of growing home sales and new home construction, but third quarter numbers from a real estate data company provide further evidence that those trends could be slowing.

While the number of new homes that sold from August to October continued to surpass last year, new home construction, also known as home starts, was flat, according to Metrostudy.   “The word of the day is ‘plateau,’” says Amanda Hoyle, Metrostudy’s Raleigh-Durham director.

The report adds to the evidence that the third quarter was a rough stretch for the Triangle housing market. Last month, a report from appraiser Stacey Anfindsen found that the number of homes listed on the market and the number of pending home sales actually dropped in the third quarter.

The reports differ because Metrostudy only looks at new homes, while Anfindsen includes sales of existing homes in his data. But combined, the third quarter numbers paint a picture of a housing market that could be showing the first signs of a slowdown that has taken hold in other parts of the country.

Housing analysts in the Triangle are quick to point out that Hurricane Florence disrupted the homebuying market for more than a week in September, likely contributing to the lower sales volume.

But the rising cost of homes, coupled with standard 30-year mortgage interest rates approaching 5 percent, could be dampening buyer enthusiasm, according to some analysts and homebuilders.

“Our third quarter was quite a bit off,” says Brant Chesson, president of Homes by Dickerson. “Even the buyers we are seeing, they are very reluctant buyers and it takes them a lot to get them over the finish line.” That has translated to buyers being more aggressive in negotiations and, in some cases, people backing out of contracts. That’s not something you usually see.

Rising prices also make it less likely for people to consider moving, because there is no guarantee that a homeowner will be able to cash out of an existing home and get a larger, nicer or better-located home by spending a little more. “There are just not good choices for people to move up,” Chesson says. “I think this pricing pressure has caught up with [the Triangle].”

To make up for potential losses, Hoyle expects homebuilders to start offering more incentives to prospective buyers, such as lower closing costs. Builders may also put more effort toward building at lower prices, but that has been a difficult task in the face of rising land costs and labor prices, builders and analysts say.

But the news isn’t all gloomy. New home closings, excluding resales, were still up nearly 12 percent in the third quarter, and job reports continue to be strong, Hoyle says. And builders continued to be attracted to the Triangle market.

By , Triangle Business Journal

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Raleigh, Charlotte among top 15 millennial boomtowns

The Triangle has become one of the go-to places for people looking to improve their lives, whether it be because of ample job opportunity, ability to raise a family or home affordability, people are flocking in search of prosperity.

MagnifyMoney recently released its list of America’s top boomtowns, with Raleigh, Charlotte and Durham breaking the top 20. The study ranked cities based on industry growth, population and housing changes, and workforce opportunities.

As a follow-up study, the financial product comparison site released another list, ranking the biggest boomtowns for millennials using those same metrics.

Although North Carolina had less of a presence on the list, two cities in the Tar Heel State broke the top 15.

Raleigh came in sixth on the list, receiving a total score of 69.8 out of a possible 100, and Charlotte ranked 12th, with a total score of 56.3.

From 2011-2016, the five-year period for the study, Raleigh’s millennial population increased by 12.7 percent. The City of Oaks’ millennial workforce grew by 23.6 percent to 151,298 workers, the fourth largest increase in the country during the period. Raleigh’s unemployment rate fell from 10 percent to 6.1 percent, a 39 percent decrease, while the median annual salary rose 22.7 percent to $31,235.
Also, A recent study indicates that North Carolina is one of the go-to states to try and achieve the American dream. Raleigh – 3rd, Charlotte – 13th, and Durham – 16th, are among the top 100 boomtowns in America, according to Magnify Money, and some of the most attractive places for businesses and workers.
It’s no surprise that people are flocking to North Carolina’s capital. Raleigh is consistently touted as one of the best places for jobsbusinesses and to live.
By , Triangle Business Journal

A look at Triangle home prices at 2018 halfway point

Home sale trends continue to deepen throughout the Triangle at the halfway point of the year, with median prices rising 7 percent over last year.

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.

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