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4 changes in Triangle real estate market

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Editor’s Note: Every Friday, WRAL TechWire takes a deep dive into the Triangle real estate market. This includes topics from this week’s report, such as the Triangle’s latest real estate market data and why the Triangle housing boom may be over (or not). WRAL TechWire Reporter Jason ParkerThe author of this report is a licensed North Carolina real estate agent.These special reports use the category tag “triangle real estate” Also “triangle real estate market

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Raleigh – The fundamentals of the Triangle housing market have shifted since the beginning of the year, and this could mean that the Triangle housing boom is over – at least for now.

Local real estate agent Tony Fink, whose Linda Craft team in Raleigh, REALTORS, told WRAL TechWire on Thursday four factors that turned the real estate market from a strong sellers market earlier this year to a balanced market with no sellers or buyers. said there is Entering the fall market will give you an edge in negotiating deals.

But Jodi Bakst, owner and broker at Real Estate Experts, told WRAL TechWire that, overall, the triangle market hasn’t slowed down, at least compared to other markets.

“Triangles tend to be the last to be hit by what’s going on in the market,” Bakst said. “I still don’t know if we’re bulletproof.”

And some indicators suggest that the region’s housing boom may be over, at least for now, in the short term. That’s not to say home prices will plummet, however, Fink notes. It’s just that there are multiple indicators that changes in market and macroeconomic conditions are beginning to accumulate and may be having an impact.

The end of the triangular housing boom: now a buyer’s market, prices falling, sales days increasing

what’s happening

beginning, Prices slow down.

“Housing prices are up pretty big,” Fink said, whether you look at it as a year-over-year rise or the three-year rise from 2019.

For example, year-over-year price increases across Durham and Wake counties and the regional housing market from August 2021 to August 2022 are still showing double-digit increases. TMLS data.

Prices increased 18.8% year over year in Wake County and 18.6% in Durham County. Across the region, prices increased by 15.4% year-on-year.

However, the price increase is due to the year-on-year gains recorded by TMLS in February 2022, compared to February 2021, when the Triangle region recorded 23.9%. price increase.

Additionally, in Wake County, between February 2021 and February 2022: price went up 23.6%. And in County Durham, Increased by more than 1 million yen There will be an increase of 35.4% from February 2021 to February 2022.

“Price growth has definitely leveled off,” Fink said, adding that the fall in median home sales prices since June 2022 marks “the first downward trend in years.” pointed out.

Triangle property market is slowing, but agents warn it may be seasonal

Inventory and Mortgage Rates Continue to Rise

Two other market factors that have changed the Triangle’s local real estate market, according to Fink, are an increase in the number of homes available and higher mortgage rates.

Again, there are significantly more listings and interest rates jumping compared to February.

Fink analyzes what he calls “point-in-time data” on the first day of each month for inventory levels.

As of Thursday morning, there were 5,102 homes available for sale in the area he tracks data for, he said. That’s a significant increase from his 1,680 homes for sale in the same area as of Feb. 1, Fink said.

and there is Mortgage interest rate risesFor homebuyers, this means higher monthly costs of ownership and higher long-term borrowing costs associated with financing a home with a mortgage.

As of Thursday, typical mortgage rates for 30-year fixed mortgages rose to 5.66%, up 0.11% from the previous week and up 2.79% year-on-year. data From Freddie Mac.

Leading Mortgage Market Survey, week to 1 September 2022. (Images and data: Freddie Mac)

Freddie Mac data from early February showed the typical mortgage rate for a 30-year fixed mortgage was 3.55%, with interest rates rising more than 2% in the past seven months.

that is Changed the cost formula For some homebuyers, Fink said. What existing homeowners are doing to access their home equity is also changing, even though a record number of people are now considered equity rich in North Carolina.

up to date data Refinancing activity is down 15% in July 2022 compared to June 2022, according to the Wake County Register of Deeds. widening gap in the real estate market.

Home affordability plummets further in Raleigh, but buying demand remains strong, agent says

Emotions remain one of the economic uncertainties

“These aren’t necessarily bad things,” said Seth Gold, a licensed real estate agent for Bold Real Estate and Governors Club Realty, in an interview with WRAL TechWire on Thursday. “Our region always seemed to be underperforming in terms of pricing and growth, but I think we caught up.”

Still, macroeconomic conditions have changed quite dramatically since the beginning of the year, with ongoing inflation and continued concerns about inflation prompting the Federal Reserve to raise interest rates and, as a result, mortgage lenders. raising interest rates. And continued volatility in the stock market and continued expectations of a recession are making investors uneasy even as costs rise.

So with house price gains slowing or leveling off, mortgage rates rising, more homes coming up for sale, and ongoing concerns about macroeconomic conditions, Mr. Fink said, “buyers’ sentiment ment has changed,” he said.

But for those looking to buy this fall, the market may be in balance now.

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