Editor’s Note: Every Friday, WRAL TechWire takes a deep dive into the Triangle real estate market. This includes housing affordability and the cost of buying a home, the topics of this week’s report. 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”
Raleigh – Costs to buy a home in the Triangle continued to rise in July as housing affordability plummeted to new record lows. latest data From Triangle Multiple Listing Service. However, due to changing market conditions, home prices in the area may be declining. new report Found from Zillow.
Typical home prices in the Raleigh area were estimated at $457,006 in July, down 2.5% from June 2022, according to the report. Still, it’s a 62.3% increase from July 2019.
So some buyers are in a better bargaining position than they were just a few months ago.but even if Seasonal trends have reappeared In the local real estate market, that doesn’t mean it’s easier for Triangle residents. looking to buy my first home Reasonably priced.
“We’re seeing an increase in inventory, but it’s not in the price range where I feel the biggest hole is,” said Monique Edwards. NC Living Realty, in an interview with WRAL TechWire on Thursday. “Incomes haven’t increased significantly to actually buy the homes that people want.”
Did home buying costs peak in July?
But it could be good news for those looking to buy a home. And the news is that the inventory of homes for sale has increased in recent months, including in the lower tier.
Typical mortgage rates for 30-year fixed mortgages hit 5.81% in July 2022, the highest since December 2008. freddie mac shows the average 30-year fixed mortgage rate of 5.13% on Thursday. If mortgage rates fall from their July 2022 highs and house prices fall, could house prices fall as well?
Edwards said it would depend on how the buyer behaves. And about what is available on the market.
“Mortgage rates are much higher, and buyers are saying, ‘Yes, I want a house, but I can’t afford it on these terms,'” says Edwards. “The house has to be perfect for the buyer to commit to the price and mortgage rate.”
This is one reason why the Triangle may have more inventory.
Buyers willing to wait may do better with the cost of buying a home
And there might be room for negotiation, Edwards said. If it’s not about the price, it’s probably about the closing costs, or the repairs needed to make the house move-ready.
“They are more than happy to help buyers move into their homes,” Edwards said. I think you are saying.”
Some listings are sold with sellers who agree in advance to offer thousands of dollars to replace the flooring or repaint the house in order to attract buyers.
“At least at my company, and many realtors I’ve spoken to, I’ve found myself having to talk to sellers that the market is no longer the same as it was in February or March,” Edwards said. said Mr. .
“There are still a lot of people looking, but buyers seem to be getting more and more picky,” said Edwards. Because of this, buyers who can wait may be able to negotiate better terms or a better price, Edwards said. “Many sellers don’t want price cuts, but are happy to open up the opportunity to pay closing costs.”
Still not enough homes available for sale
Regardless of what the buyer chooses, the property must be found first. There are also some indications that there may be more homes available below $347,000 than in the previous month.
For example, in Wake County, as of the last day of July, there were 248 homes for sale below $347,000, the most since November 2021, according to the latest data available from the Triangle Multiple Listing Service. It is
And that measure is just the number of active listings available for sale at the end of the month.
But just because more housing has become available does not mean that more housing will be available on the open market, or that there will be enough housing, or that every homebuyer will have a housing choice. It does not mean
Nor is there enough housing under $300,000.
Edwards told WRAL TechWire that the area of the Wake County market that is most in need of housing is good ready-to-move homes selling for less than $300,000. However, there is currently a shortage of properties available between $250,000 and $300,000.
“If you see the condition of a property offered for $250,000, you’ll hate it,” says Edwards. “Public perceptions of clean, decent, livable housing just don’t match the condition of a $250,000 home on the market.”
Even in the higher price brackets, TMLS data also show a significant drop in the number of affordable homes since last July. TMLS stratifies Wake County data by homes priced under $347,000, with a significant drop in new listings since last July.
Data shows that 356 new Wake County homes became available on the open market as new listings during July, down from 772 listings in July 2021.
Even better news if buyers can raise prices
However, 356 out of 2,226 properties, or just under 16% of all new properties in the county, were priced below $347,000.
Compare that to the previous year, when there were 2,191 new listings and 35.2% of all new listings hit the market at a price less than $347,000.
What has changed is that the Triangle housing market continues its rapid price appreciation, with the Wake County median home sales price jumping 20.3% between July 2021 and July 2022. Latest Market Update From TMLS.
And more affordable housing has become more competitive, as evidenced by real estate agent Monique Edwards sharing a video clip on social media. NC Living Realty In February, dozens of people waiting Tour North Raleigh homes priced under $300,000. As competition has increased, so have home sales prices.
There is good news, however, if homebuyers can buy a home at a slightly higher selling price. buyer is ready make a contract. This is because as of the end of July 2022, there were 641 available homes in the price range of $347,000 to $469,999, according to data from the Triangle Multiple Listing Service. This is the first time since October 2020 that there have been so many homes in this price range on the market. .