Real Estate Market: Raleigh/Wake County North Carolina
What really happened in January and where are we going?
Sales were brutal down 259 units from 1146 to 887.
Existing Homes (not new construction) were down from 339 units from 920 to 581. Average sold prices on existing homes gained $22K, $466k to $488k year over year.
New construction numbers look great for January simply do to lead time, many of the closed were put under contract in Q2 2022. So not really relevant to January numbers.
Ok enough bad news.
Accepted contracts month to date in February are on par with a year ago at around 50 a day in Wake County. Showings are continue to be very solid and we know the spring ignites the market.
January closings included some amazing deals, including a townhouse that closed at $1.3m, the neighbors identical unit went under contract last week for $1.495 in two days. Let's just call that timing.
There are still a lot of price reductions, while list prices have gone up on homes placed under contract.
Flight to quality is driving this market right now. We are seeing some areas nationally struggle, but they do not have dynamic immigration or job creation. We are seeing many areas in the Raleigh MSA not be as active as other "brand name" locations. Understanding this concept and the value of brand and location is
key.
I see home prices in Raleigh going up closer to 10% than 0% in 2023, and close to 15% in 2024. Why?
Job Growth
Income Growth
Great Place to Live
Smart People Attract Smart People
Mortgage Rates Continue to Decline
Many Investments are Quietly Climbing Back
The Raleigh Area is an Amazing Place to Live
Compare Raleigh Price Per Square Foot to Other Desirable Markets
Based on this a $400k home will be $506K by the end of 2024. Read my previous posts if you are looking for accuracy of predictions.