is it better to buy a home in raleigh north carolina now or
should you wait and see if the market cools off a bit
in today's video we're going to give you the facts so you can make a decision for yourself
hi this is chris morton real estate broker with exp realty in raleigh north carolina and
we've been noticing a trend lately on youtube real estate agents from all over the country are making
these what we call doom and gloom videos where fire is behind them and their eyes are bugging
out and they're freaking out and telling everybody that they should be freaking out too about the
housing market some of them are saying we're about to enter some great recession depression thing
where housing prices are going to collapse others are saying prices are going to go through the roof
and pretty much only billionaires are going to be able to afford little shotgun shacks in the future
well we're of the opinion that a lot of that stuff is just a bunch of garbage and they're just
putting stuff out there to get people all riled up get their views up on youtube get their subscriber
numbers up you get the idea today we're gonna break down the facts for raleigh north carolina
so you can decide exactly where things stand around here but first we need to give you a little
disclaimer we do not have a crystal ball if we did we would play the lottery all the time so by not
having that crystal ball we can't really predict the future all we have to go on is what's happened
in the past and really what we're hearing from our current clients and from other real estate agents
in the area about what they're seeing is going on so with that out of the way let's get on with it
first we are hearing from a lot of people that they're planning on moving to raleigh north
carolina and a lot of those people are planning on making the move in june july and august which
is normally a really good time of the year to come to raleigh and buy a house kids are out of school
inventory is usually really up and you have a lot to choose from it makes the whole process fun
enjoyable easy weather's great great experience for everyone that's what normally happens but
unfortunately 2021 like 2020 has not been a normal year but let's back up a minute
as you all know 2020 was a very momentous year in our society because of those events
a lot of people started working from home and a lot of companies and those employees realized
they did not need the employees to be in the expensive cities to live and to work that they
could be doing work remotely so a lot of people started looking around at best places to move that
gave them a little bit better quality of life and has been the case for many years raleigh north
carolina and our surrounding area popped up to the top of a lot of people's lists and now finally
with things starting to get back to normal people are finally getting more and more comfortable
with making a move and you guessed it a lot of them are making a move to raleigh north carolina
and unfortunately right now in early 2021 we have historically low inventory of houses crazy record
low mortgage interest rates we have 40 to 60 families a week coming into the triangle area
and all this is putting a terrific strain on our housing situation so you can just imagine what's
going to happen in the summer when all those people i talked about a few minutes ago come to
the area to buy a house and to add to the increase of people moving here you've got a lot of people
that are already living in raleigh that are not wanting to move out they're totally happy where
they are and so they're not planning on selling their house which is of course reducing inventory
and on top of fewer people moving out of raleigh new construction which has traditionally been a
supply of inventory for our area is just not been able to keep up with demand lately it's gotten to
the point that some builders that traditionally allow buyers to make customizations to the home
before they start building or doing all that work themselves on the front end before they even put
the home on the market this ends up saving a lot of time and can get the home done a lot quicker
add to that the delays builders here and all over the country are experiencing with supply
shortages and labor shortages and the fact that a builder can't just buy a piece of land today
and start building houses on it tomorrow in some parts of our area through having to go through the
county and city permitting process it can take up to two years for a builder to start being
able to build on his land another thing that you might think would help out with inventory
would be an increase in foreclosures the media have been all over a talk about how foreclosures
are going to increase this year and we're not really of the opinion that's actually going to
happen especially not in the raleigh area mainly because so many people around here have a lot of
equity in their homes should they find themselves in a lot of trouble hopefully they won't find
themselves in trouble but if anyone in around here found themselves where they were behind
on their mortgage payments they could pretty easily put their home on the market for sale
get it sold very very quickly because demand is high and they're going to end up selling
for top dollar and be able to move out rent something until they can afford to buy again
so in other words we're not going to see i don't think an increase in discounted
tons of inventory properties come on the market it's just not going to happen right now
mainly because we have so much equity so to put that all into perspective last year this time
there were 6,300 homes on the market in the 25 county triangle region of raleigh north carolina
now that in and of itself is a really low number we should be sitting at like thirty thousand
this year we've gone from sixty three hundred homes last year down to twenty four hundred homes
this year crazy numbers and the average price of a home last year was $437,000 this year the average
price of a home is $539,000. we have personally had clients that we've been working with since
the fall who have written offers on homes and the offers haven't been aggressive enough and
you guessed it they were not successful in getting the home so now they're looking in the same home
they could have gotten last year for $300,000 is now being priced $340,000 let's take a look
at a couple of examples we found on zillow of this kind of price increase so this home in cary north
carolina sold almost a year ago for $402,000. today this home is worth around $445,000 now just
you're aware zillow's zestimates aren't a formal appraisal they're a computer-generated estimate of
a home's value based on homes that have recently sold nearby not dead-on accurate but it does give
you an idea of where the housing market is headed also this home sold back in march of last year
for $500,000. zillow now says it's worth almost $545,000 this home in raleigh sold for close to
$600,000 back in february of last year zillow now says it's worth 6.52 and this home sold in
raleigh for $700,000 back in february of last year zillow says it's now worth 7.63
and this home and carry sold for 805 back in march of last year zillow says it's worth 8.75 today
and this home in chapel hill sold for one million dollars back in january of last year zillow says
it's already appreciated by an additional hundred thousand dollars and finally we've got this house
sold for two million one hundred and seventy five thousand dollars back in april of last year
zillow says it's now worth over 2.3 million so you can see this home value appreciation it's
this whole thing is not just impacting the lower price brackets it's affecting all of them so
what does this all mean to you should you buy a home in raleigh now should you buy in the summer
or should you sit on the sidelines and wait it out while we can't make this decision for you
all the information we've shared with you in today's video points to the fact that it doesn't
appear inventory shortage is going to get any better anytime soon so if you don't have to be
here in raleigh at any specific date it's probably a really good idea for you to get started on your
home search sooner rather than later especially if you were planning on buying in the june july
august time frame which is when we're expecting to see a ton of buyers hit the market and therefore
more and more competition that's not even to say what's going to happen in september october
november december when traditionally inventory is at its lowest so we have no idea what's going to
happen that point the year so we hope this has helped you make a decision we're here for you
if you have any questions we're happy to help any way we can and as always please like and
subscribe below thanks for watching this has been chris morton see you in the next video bye-bye