2019 is now over and we are excited to release our 2019 Raleigh-Durham-Chapel Hill 501 Nest Annual Report. Understanding what’s going on in the market allows us to equip our clients to make confident, informed decisions. It also gives us an idea of what the future holds.
As we start to look through the 2019 data, here are some national housing market trends that we are seeing. The most compelling shift is in housing affordability. Low inventory has caused home prices to increase throughout the year, but the actual affordability of homes has improved due to changing real wages and lower interest rates. Though low inventory continues to stifle sales volume growth, year over year sales are increasing based on slight supply increases throughout the U.S.
The Triangle area continues to thrive. Overall sales volume increased more than 9% even though this year started slower —we saw the seasonal burst of spring market enthusiasm occur almost a month later than in previous years, with the sharp uptick occurring in April and May, rather than March. Prices continue to rise with this year coming in at a robust, but more reasonable, 4.5% pace. Double-digit price growth, which many parts of this region saw from 2016 to 2017, is not sustainable; eventually home prices outstrip wage growth, impacting many buyers’ willingness to purchase.
Buyers continue to jump aggressively when attractive properties come to market and have demonstrated a willingness to pay a premium for homes in exceptional condition. Finally, inventory levels continue to fall for the region, reaching an average low of 2.3 months without impacting the overall days on market trend, which has held remarkably steady from 2018 to 2019. This, we believe, is due in large part to the demographic trends of the area, which show a net influx of 40 residents per day to the region, driving significant demand for housing that builders have not been able to satisfy. The Triangle area may not see a return to a market that is balanced between buyers and sellers, represented by a six month supply of homes, for many years.
- Total sales increased more than 5% year-over-year across the Triangle MSA last year. Total sales were 29,993, a 5.59% increase from 2018, when there were 28,405 total sales.
- The median sales price in 2019 was $310,000, a 3.51% increase over 2018’s median sales price of $299,500.
- In the Triangle MSA, average days on market increased 10.00% to 22. Garner and Wendell had the lowest average days on market within the Triangle Hill MSA at 13 days each.
Be sure to check out the full 2019 Raleigh-Durham-Chapel Hill 501 Nest Annual Report here for more info on how the market performed last year. Have questions? Contact your Nest Broker today to find out what this report means for you and to discuss your real estate goals. Interested in what’s happening in other markets? Check out all our 2019 Annual Reports here.