Triangle North Carolina housing market update
The Triangle area in North Carolina is booming, with Raleigh-Durham being one of the fastest growing metropolitan areas.
With impressive developments such as Spark LS, a $1-billion 109-acre life sciences development in the Raleigh suburb of Morrisville, and the booming biotechnology and biomanufacturing sectors, the Research Triangle is on the rise with approximately 5,000 new residents moving to the area each month. In fact, this hot market is the fourth fastest growing city in the U.S., trailing closely behind San Francisco, Austin and Seattle, according to Kenan Institute’s report.
Considering hundreds of new residents arrive in the Triangle every day, all looking for a place for their family to call home, the housing market is also heating up. And the market does not look much better for renters. With nearly 50% of homes in the Raleigh-Durham market occupied by renters, and rent at a 20-year high measured as the percentage of income, homebuying has reached a new level of competition. At Ownify, we chose to launch in the Triangle to help first-time homebuyers meet the challenges of rising demand and a fast-moving market. Whether you’re new to the Triangle or ready to make the move from renting to owning, we’re on a mission to rebuild the path to homeownership, making it achievable for the next generation of first-time homebuyers. As we keep a finger on the pulse of the Triangle housing market, here’s an update on the latest market trends and how it may impact your homebuying journey.
Housing Prices in the Triangle
As of December 2022, the median sales price of single-family homes in the Triangle was $428,000, with the overall average home selling price up 14.7% compared to last year. In Raleigh specifically, the median sales price of a single-family home was $413,500 at the end of 2022, with the overall average selling price down 1.3% compared to 2021. However, the Raleigh market is still competitive with the average sale price per square foot at $208, a slight increase of .5% since last year. Compared to other tech-centered markets across the U.S, like San Francisco and Boston, housing prices in the Triangle are abundantly more affordable for a higher quality home, which is another reason why this market is so attractive to buyers moving in from cities where the dream of ownership may not even be a consideration.
Housing Market Triangle Trends
Similar to housing markets across the country, the Triangle housing market has seasonal trends. For instance, the market tends to slow in the late fall and winter months before it ramps up in the spring. And according to the Triangle MLS, home prices are on an upward trend of approximately 10% year over year in the Raleigh-Durham area.
According to local research, more than half of buyers within the Triangle real estate market have been out-of-town buyers, from states such as New York, Colorado, Texas, Arizona, New Jersey and Florida. With an influx of biotech and tech jobs, thanks to major corporations like Apple relocating to the area, more buyers from diverse locations across the country are looking to purchase in the Triangle region. With the increased competition, first-time homebuyers face even more challenges and need to be armed with as much cash as possible and ready to move quickly to stand a chance in making an attractive offer.
Housing Activity in the Triangle
When the market ramps up, homes have a habit of vanishing quickly. Last year was monumental in fast-moving housing activity in the Triangle. In December 2022, homes in the Triangle stayed on the market for an average of 33 days, and the average inventory of homes for sale in that same month was 5,996 – up 112% from December 2021. While inventory is up, that doesn’t necessarily mean that potential buyers should take their time on making offers, as the market has proven that the movement is fast and the best homes for the best prices are in high demand. Knowing what you want going in, and then being prepared to make a decision quickly, will bring about the best results when considering a purchase in the Triangle region.
As you take the first step toward the dream of homeownership in the Triangle area, or if you’re a real estate agent guiding homebuyers in the exciting adventure of buying their first home across the Triangle, from Chapel Hill and Cary, to Morrisville and everywhere in between, our Ownify team offers the support and resources to ensure a smooth homebuying process. We believe that homeownership should be achievable for the next generation of buyers through a 2% down payment and a partnership with our team to make an appealing offer to sellers in a fast-moving market - namely, a full cash offer and the ability to close the deal in half the time it takes with a regular mortgage. All that’s left is to enjoy the once-in-a-lifetime process of becoming a first-time homeowner.
©2023 Ownify, Inc. All rights reserved. Chris Smith is CPO and Founder of Ownify, Inc.