2020 Raleigh Real Estate Reviews
If you believe in visiting the doctor for an annual check-up or bring your car in on a regular basis for a tune-up, you are "adulting" quite properly. Kudos! Now, might I suggest you expand on that discipline and consider adding an annual real estate review to your lineup? It's a key component to your financial health and easy enough to assess.
Just ask your trusted local realtor to run some numbers for you and take a few minutes with them so that they may explain the stats in a hyper-localized view. A wise homeowner should always know where one of their (perhaps) largest investments stand!
See below for a sample and the quick take on what 2020 delivered in our local Raleigh real estate news.
Annual Real Estate Review | January 2021
Dear Happy Home Owner:
Several documents are included in this packet. None of this requires any of your urgent attention. But just for fun, you will find highlights from 2020 contained within, including sales data for your neighborhood, Days on Market and Months of Supply trends, as well as a chart depicting growth in demand (and scarcity of supply) in new construction in particular, since this is an area of great interest to you, Mr. & Mrs. Client.
The last 12 months “In the Beltline” have been speedy ones. Mortgage rates were incredibly low and homeowner equity reached healthier levels, so many buyers were able to trade-up or hunt for their next home with financial comfort. Job numbers remain strong in the Triangle vs other parts of the country. With inventory levels incredibly low and demand steady, upward pressure on pricing was found at nearly every price point.
This map of our ITB area shows where the greatest concentration of 2020 sales (all 203 of them, by this MLS-only count) were located in the $800K and up market, in the detached single-family home sector.
We consider a balanced market one with approximately 5-7 months of supply available for purchase. Currently, we have a market imbalance with demand outpacing supply. While this is great concern for affordable housing, this seller’s market has been a boon for those positioned to capitalize on new home starts and turnover in their portfolios. Appreciation has been quoted in the range of 5-6% this year.
In the resale market we saw a significant increase in multiple offers at time of sale, with some homes selling for 90%-111% of asking price. This is unusual for Raleigh, where our range was typically 88%-100% of list.
In new construction, buyers are ever-more savvy, with an education (for better or for worse) from the likes of HGTV, design magazines, and Instagram. Price per square foot for new construction, all-in, reached a high of $418, per MLS.
The population of Raleigh has grown by more than 2% year over year and is considered one of the fastest growing metropolitan areas in the U.S. Nearly 1/3 of our population is between the ages of 20-39 years old. Diversity is increasing and employment opportunities abound, especially within our robust medical community, university systems, high-tech,and bio-tech.
So, I'll venture to say that The Edit believes the future looks cautiously optimistic for those of us passionate about our work in local Raleigh real estate and relocation.
Leaving you with those thoughts...and always available for your questions. May 2021 bring you great joy, good health, and abundance in all areas you hold dear to your heart.
Happy new year!
Truly yours,
Maggie Hutten
The Raleigh Edit
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