Raleigh real estate market 16th in nation for price gains over past decade
RALEIGH- In the decade between 2011 and 2021, Raleigh homes have gained an average of 8.5% in value per year, according to a new analysis by the National Association of Realtors® (NAR).
It is the 16th in the country, among more than 900 metropolitan statistical areas analyzed by the NAR.
According to the dataset, a home purchased in the fourth quarter of 2011 would have gained 126.1% in value over the decade, which ended in the fourth quarter of 2021.
Part of that gain was fueled by an incredibly competitive real estate market in the area, as the Raleigh area was found to have added some $50 billion to home value in 2021 alone in a recent analysis. by Zillow.
Homes that are available on the open market, across the region and at all prices, are now experiencing bidding wars due to a housing shortage exacerbated by the low inventory of homes for sale.
At the national level, the NAR report notes that over the previous 30 years, sales prices for existing single-family homes increased at an annual rate of 4.3%. But starting in the fourth quarter of 2021, the national average saw house prices accelerate at a faster annual rate of 8.3% over the previous 10 years, according to the NAR.
“Due to strong price growth, homeowners are reaping large wealth gains from homeownership,” the report said. “As of Q4 2021, nationally, a homeowner who purchased a typical existing single-family home 10 years ago at a median sale price of $162,600 is likely to have accumulated $229,400 in home equity, of which 86% came from the price. appreciation.”
Report: Raleigh to be 3rd hottest real estate market, prices will climb 24%
Raleigh adds middle-income households
And Raleigh also ranks among the top 20 metropolitan areas in the nation for growth in the number of middle-income homeowner households between 2010 and 2020, according to a National Association of REALTORS® data analysis of the United States Census Bureau.
This analysis found that Raleigh added 22,611 middle-income homeowner households in the decade between 2010 and 2020, ranking 18th in the nation.
In total, the National Association of REALTORS® found that this correlated with a change in overall household wealth of $16.6 billion in the region, over the decade.
While median income rose 6.1% over the decade, the typical price change for a median-income household’s primary residence rose 51.9% over that period, according to the to analyse.
Prepare for a bidding war: Most Triangle home sales are the most expensive, some over $100,000
Housing remains in high demand in the Triangle
More homeowners across North Carolina are now considered “stock-rich” than ever before, according to an ATTOM Data Solutions report released earlier this year.
And the pace, speed and price of the Triangle’s real estate market continues to amaze future homeowners. A first-time homebuyer who spoke with WRAL TechWire about his experience navigating the Triangle housing market on condition of anonymity described the current state of the market as “absolutely insane”.
Triangle Multiple Listing Service (TMLS) executive director Matt Fowler told WRAL TechWire in February that an index that tracks housing affordability in the Triangle hit an all-time low in January 2022.
“With inventory at rock bottom, affordable housing just isn’t on the market,” Fowler said in this February 2022 interview.
Meeting the challenges of the Triangle’s real estate markets
A demanding environment
This potential buyer also told WRAL TechWire that he expects to have to move soon, even if he can’t find an affordable home to buy. This is because they anticipate an increase in their monthly rent which could deprive them of the means to stay in their current residence.
And with mortgage rates rising again, after a temporary dip due to geopolitical conflict in Ukraine, first-time buyers could lose purchasing power, Redfin economists concluded in a February analysis of the Raleigh housing market.
Data analyzed by WRAL TechWire this week found that more than half of all homes sold in 2022, through Tuesday, sold for more than the property’s list price.
Many people in the area are concerned that housing affordability will be a challenge and that resident prices will be shut out of the Triangle’s housing markets.
“Unfortunately, as house prices have become less affordable, the distribution of housing wealth has deteriorated over the past decade, with low- and middle-income households sharing less of the housing wealth pie,” he said. said the National Association of REALTORS® in its report. . “Of the $8.2 trillion in real estate wealth accumulated from 2010 to 2020, high-income homeowners accounted for $5.8 trillion, or 71% of wealth accumulation.”
Raleigh homes are about to become even less affordable, economists say