Raleigh-Durham-Chapel Hill 2022 Annual Report

We are proud to present you with this synopsis of the national, regional, and localized trends that matter most to you, found here in our RDCH_2022 Annual Report.

MARKET OUTLOOK – NATIONAL LEVEL

With our Nest Annual Report, we aim to provide the most useful information possible, as every homeowner needs to keep tabs on their investment, and every potential shopper needs to be informed before embarking on such a major financial decision. Locally, we study neighborhoods, builders, and development trends, but on a national level, there are three trends that year-in and year-out are a fantastic indicator of the overall health of our national economy, and by extension, the housing market: Mortgage Rates, Consumer Confidence, and Unemployment Rates. Looking at these numbers allows us to make predictions of what we should expect to see in 2023—which is a more stable real estate market. Mortgage rates have increased more quickly than economists had predicted, but they still remain in an affordable range, historically speaking. And while consumer confidence is down entering 2023, it has been trending upward since June 2022. And finally, unemployment is running extraordinarily low, which points to potential real wage gains in the coming year, benefitting average consumers.

MARKET OUTLOOK – LOCAL LEVEL

2022 gave home buyers and sellers whiplash as the market presented us with a “Tale of Two Halves.” The first half of the year was characterized by a white-hot spring market with desirable properties receiving multiple offers and record-setting sale prices. During the second half of 2022, spiking interest rates and dramatic price appreciation caused a decline in activity. In some cases, a given property brought to market in the second half had a monthly mortgage payment 40-50 percent higher than in the spring.

Experienced Nest agents heralded the cooling off as a much needed return to sanity in our market. We are back to exercising our negotiating skills on the buy side; and our presentation, marketing, and pricing expertise on the listing side is resulting in successful outcomes for our sellers. Inventory of homes for sale remains stubbornly low, at around 15-20 percent of pre-pandemic levels. With more people eyeing a move to the Triangle, we expect inventory shortages to continue to be the main story. The long-term economic outlook for the Triangle area remains very strong. Structural, demographic, and job trends have been strengthening over the past few years. North Carolina business venture growth has expanded dramatically, with at least 25 current or proposed ventures with capital investments in the $1 billion category. People and businesses are moving to and investing in our area. We are grateful to be thriving alongside you and look forward to working with you in 2023!

—Our vision at Nest Realty is to foster a fun work environment where our focus is always to put our clients’ interests ahead of our own. At Nest, we are all about intentional and strategic growth. As of 2022, we have 451 Nest agents buying and selling throughout 23 offices in 17 locations, spanning seven states across the U.S. With each new office that opens, we are able to expand our reach, better serving you, our incredible clients.