Home News Raleigh, Charlotte homes among most ‘overvalued’ in U.S., report finds

Raleigh, Charlotte homes among most ‘overvalued’ in U.S., report finds

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RALEIGH – If you’re trying to buy a home in Raleigh, it may not be a good time now, depending on how you bought it.

It found that Raleigh’s housing market is currently in the top 15 of the national housing market, where average home prices are more than 50% higher than statistical expectations, according to real estate economist Ken H. Johnson. I am one of the researchers.

“For now, if you’re looking for a lorry and want to buy it, you’re worried that you’ll buy it at the peak of the housing cycle,” Johnson said.

newly Updated analysis According to researchers at Florida Atlantic University and Florida International University, the average home price in the Raleigh metropolitan area is currently around $ 445,200, but statistical models based on long-term price trends predict that home prices in the region are around $ 293,500. Is estimated to be.

According to the analysis, currently estimated home prices are 51.7% higher than expected, with a difference of about $ 151,700.

Still, not everyone agrees that housing is overvalued.A local realtor on WRAL News this week House prices double Within 5 to 10 years. Even Johnson says that the strengths of the region (expansion of the economy and employment market, relatively affordable prices compared to other parts of the country, population growth) are that housing prices do not plummet as the economy slows. I told WRAL TechWire that it could mean. ..

Triangle homebuyers are facing difficult uphills due to rising prices, mortgage rates and poor supply.

Agent remains indifferent

Still, the region appears to be ranked 14th on the list of America’s most overrated housing markets, but many realtors in the Triangle don’t expect prices to drop soon. Hmm.

“The demand for the triangle is still far above the supply,” said Jim Allen, a licensed real estate agent who is responsible for the broker. Jim Allen Group.. “Prices continue to rise and there are still multiple offers on all resale lists,” he said.

“Housing prices are definitely not overpriced, and the bid war continues on all resale lists,” Allen said. One of the homes listed last week went on the market for $ 1.5 million and bid 24 hours a day. He added that he had signed a $ 1.8 million contract. war.

This is just one of the hundreds of examples of similar transactions that took place this year, as homebuyers still expect. Face a bid warAllen said, regardless of geography or listing price.

“No, Raleigh’s real estate isn’t overpriced,” Allen said. “Prices will continue to rise for the foreseeable future.”

Bid War Preparation: Highest List Price for Most Triangle Homes, Some Over $ 100,000

It’s the economy

The Triangle housing market is booming and the local economy is still growing, whether it is an increase in new businesses or the relocation or expansion of existing businesses across the Triangle and the state.

With increasing employment and population, demand for shelters is increasing and the state is facing a serious housing shortage, so one executive said. 900,000 housing shortage By 2030, prices have risen across the market and across the region.

This includes the rental market. Rents in the lorry area are up about 20% Year-over-year, despite an estimated 5,000 rental units available during that period.

“Overvaluation is an interesting explanation for valuing an asset,” said a licensed realtor. Linda Craft & Team, REALTORS®..

“Gas is overrated with a 50% increase and can only be used once,” Craft said. “Housing prices have doubled in most triangle areas, so gas prices have doubled.”

Throughout the United States, consumer prices have risen, driven by the costs of shelter, energy and food. Latest inflation rate According to 8.6% data Today, it was announced by the US Bureau of Labor Statistics.

Triangle apartment crunch worsens – vacancies decrease, rent prices rise by 20%

High demand

“Our area is in very high demand,” Craft said. “I don’t think housing will fall. This is the new norm.”

Announcements from companies like Google, Apple, Amazon, and now Meta, and the future work they expect to produce, will contribute. Increase the value of your home, Craft said. And it’s not just these four companies. You have selected a state to expand— A North Carolina Department of Commerce spokesperson told WRAL TechWire this week that more than 18,000 jobs have been announced and a $ 7.9 billion investment has been announced. Only for the first 5 months Calendar year.

“Our local economy is booming and more job creation will lead to continued high demand in all sectors,” Allen said. “The new Triangle jobs are bringing much higher salaries,” says Allen, who currently has only about 3,000 homes available in the region, but an estimated 32,000 high-paying technology and life sciences jobs have been added to the region. It is expected to be done. The economy for the next decade, “This will create a sharp rise in future prices foreseeable.”

Meta Coming to Durham: Real Estate Prices Can Double Again in 5-10 Years

Buy Now or Not Buy Now

And last month, John Connaughton, an economist at the University of North Carolina at Charlotte, told anyone interested in buying a home in North Carolina. Buy early, not laterEspecially when buying real estate using a mortgage.

This is because mortgage rates are rising. Mortgage industry Financing applications have dropped significantly as the Federal Reserve seeks to stabilize the US economy by raising interest rates and borrowing costs.

Triangles aren’t the only homes that are overrated. In the analysis, Charlotte ranked 11th in the overvalued housing market with an expected value of around $ 239,800, while the current average home price estimate for the metropolitan statistical area is around $ 372,300. According to the analysis, this is the difference between the price premium of 55.25% and $ 132,500.

Layoffs hitting the mortgage industry with an additional 48 workers in Charlotte – that’s why

Homeowners shouldn’t expect a home collapse similar to the one that preceded the Great Recession, Johnson said.

“I don’t expect the house to collapse,” Johnson said. “A lot of people are coming to this area.” He quoted every four people currently living in the triangle from sources that estimated that five people would live in the area within ten years. ..

This is a 25% growth rate. Also, Johnson said the economic environment was different from 2007, as inventory is currently low and many are choosing to move to this area from other areas where home prices may be higher than Raleigh. Said to be in. ..

Addressing Triangle Housing Market Challenges

Softening market?

Still, prices are a little softer.Analysis of Triangle multi-list service According to data obtained by WRAL TechWire, the median selling price of Wake County in May 2022 was $ 485,000. This is the same. Median selling price Observed in the market in April 2022.

Still, housing averaged only four days in the May 2022 market, compared to six days in the May 2021 market, where the average selling price in Wake County was $ 389,900.

In Dallam County, the median selling price in May 2022 was $ 424,250. This is below the average selling price of $ 426,000 for all transactions in the county that closed in April 2022.

“There can be a long-term trend of softening prices and a shortage of affordable homes,” Johnson said. “You can’t go far beyond the basic pricing trends,” he said. “And we can’t get out of it without financial pain. We can see that there is a long-term shortage of affordable homes, rather than crashing like last time.”

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