The pandemic may have pushed the housing market into a temporary hibernation, but real estate has really rebounded throughout the summer. Here are some of the trends nationally and in our local Triangle market that I've been keeping my eye on:
1. Existing home sales took a giant leap in June.
According to the National Association of Realtors (NAR), home sales went up 20.7% from May to June, making it the largest month-to-month increase in history! That tells us that while the real estate market got off to a slow start in 2020, it’s making up for lost time.
2. New home sales are even better.
Across the country, 776,000 new homes were sold in June. That’s the highest number we’ve seen in 13 years! In fact, those numbers are so good they are 7.6% higher than last year’s — when there was no pandemic to slow things down.
3. Unbelievable mortgage rates.
One of the biggest driving factors of the previous two insights is the unprecedented mortgage rates we’re seeing on the market. Some buyers are landing sub-3% loans! While this is great for anyone looking to refinance their home, it’s even better for individuals looking to purchase a new property.
4. Home prices are going up.
If you’re currently looking to sell your home, you’ll be happy to know you’re likely going to get a good price for it. If you’re looking to buy a home, don’t expect a big discount because of the pandemic, but do keep in mind that the historically low current mortgage rates can make up for a higher base price.
5. Rural areas are on the rise.
With COVID-19 accelerating the adoption of the digital workplace, many city dwellers are considering moves to the suburbs and exurbs while working from home. Many businesses are also reducing their expenses by giving up their pricey metropolitan office spaces and increasing their virtual presence. With lower property costs and more room for new construction, the appeal of rural areas is likely to continue growing for many years to come.
6. Local Triangle Real Estate Trends.
A major reason for the hot seller’s market in much of the country, including the Triangle Region, is the continued inventory shortage. July 2019 vs. July 2020 inventory levels in the Triangle decreased 37% while closed sales rose 9%. Nationally and here in the Triangle, we’re seeing sellers slowly ease back into the market. While we still have a ways to go to catch up with the current demand, inventory is slowly starting to return to the market.
Did You Know?
1. According to new statistics, North Carolina is home to three of the best cities in the country to retire. Raleigh earned one of those top 25 spots according to rankings released this month by Forbes. The other two cities are Asheville and Winston-Salem.
2. According to Corelogic, the average American homeowner has gained approximately $106,100 in equity since 2010 with many of them not knowing it. What is My Home Worth?
Triangle Market Trends July 2019 vs July 2020
If you’re thinking of moving this year, contact me today to better understand what’s happening in your neighborhood and our local market. You’ll want to be ready to make your move when you find the home of your dreams. I’m always a text, e-mail, or phone call away! Stay safe, and stay informed!
Mobile: 919-675-5366
E-Mail: Jean.Scott@kw.com
Two Locations to Better Serve You:
Raleigh: 4700 Homewood Ct., Suite 200, Raleigh, NC 27609
Wake Forest: 1744 Heritage Center Dr., Suite 201, Wake Forest, NC 27587
