Summer is hot—and so is the local real estate market! As inflation soars, so too does the cost of housing, so if you’re thinking about buying or renting a new home, now’s the time to do it. According to WRAL TechWire, real estate analysts anticipate continued price appreciation in the housing market, especially in urban areas of North Carolina where more people are moving from around the country.
Housing prices are rising, rates are rising, and affordability is at an all-time low. Interest rates are also expected to rise. For instance, the typical interest rate for a 30-year fixed mortgage loan is now 5.25%, up 2.25 percentage points from a year ago, and up from 3.76% in March. These high interest rates are only making the Triangle housing market more competitive, as people who are moving from, say LA or New York City, still find the area more affordable—which has resulted in a surge of demand for living here that outweighs our supply of housing (aka demand > supply). So while those who are relocating within Raleigh or North Carolina find the housing here to be expensive, those coming from more costly areas actually find local housing to be modest—and the latter population also finds the cost of living to be cheaper here. This, in turn, deters Ralieghites from getting out of a rental to buy a home.
Additionally, more high-income jobs are becoming available in the Triangle (looking at Apple and Google moving their HQs here…), which also makes the area desirable and leads to a higher cost of housing. Because of this, many people who live here are looking to relocate elsewhere. John Quinterno, a professor at Duke University, told WRAL TechWire that “these dynamics also lead to displacement and impose real burdens on workers in service or supporting jobs that pay less and can’t work remotely.”
On the other hand, some economists expect the price of homes in the area to stabilize. But it’s not something you should count on. Suffice it to say, act now! If you’re in the market to buy a home in the area, I can help. Contact me at 919-438-0548 or Ryan@HudsonResidential.com to get the ball rolling before it’s too late!