are raleigh home prices at their peak or should raleigh now be considered one of those
more expensive cities we're gonna tackle it all for you up next
hi this is chris morton real estate broker with exp realty and one of the big questions
we get over and over from buyers is are home prices in raleigh north carolina going
to continue going up and up and up or are they about to crash in a big flaming pile of whatever
and while we can't predict was certainly what's going to happen we can give you an idea about what
we think is going to happen but first how did we get here well number one raleigh has consistently
been ranked number one number two or number three on most every best place to live list by every
expert on the planet for the last number of years and the general public has taken notice of that
and is starting their move down to raleigh north carolina and second after the events of 2020 a lot
of people have been allowed to work from basically anywhere and because they've looked at those lists
that show raleigh's being an awesome place they're moving to raleigh and third add to that you're
getting these big giant investment groups coming into the area gobbling up homes paying cash and
planning to use those homes as rental homes so taking even more inventory off the market fourth
add in the announcement that google apple and who knows who else is coming here and that's shining
even a brighter light on the raleigh triangle area again causing more people to want to come here and
on top of that add in historically low interest rates and you have an unprecedented demand
for housing which is all coming crashing down on us all at one time on the other side of the
coin you've got local home sellers who are not willing to sell because they're afraid
they'll have nowhere to live that they've been priced out of the market and that they are going
to end up homeless if they sell their house so they're holding off selling and on top of that
all the builders in the area are not building the normal number of homes they typically build
because material costs are still really high and so you have a perfect storm of too much
demand meets too little supply which equals home prices going up higher and higher and higher just
consider in the last six months home prices in the raleigh area have gone up a whopping 10 percent
and over the last 12 months they've gone up an astounding 18% so that means a home that you
would have bought for 400 000 a year ago is now up to about 472 000 dollars and a home that sold for
$600,000 a year ago is now selling for $708,000 a home that sold for a million a year ago is now
selling for one million one hundred and eighty thousand dollars things have gotten so crazy that
i recently had a cash buyer yes all cash offer four hundred and seventy five thousand dollars
on a four hundred thousand dollar house they offered a three week close meaning the transaction
would end in three weeks and they gave a two-week free rent back meaning the sellers were able to
stay in the home for an additional two weeks on top of that they gave 40 000 in due diligence
so 475 three-week close two-week rent back forty thousand dollar due diligence and they still lost
out to another buyer it's insane obviously right now people are saying the raleigh housing market
is way overpriced but what if they're wrong what if it isn't overpriced people are
always been under the assumption that because raleigh has been a mid-sized city for so long
in a state that typically has low home prices that that's always going to be that way but what if
raleigh is becoming one of those expensive cities that you see out there where home prices are 500
a thousand two thousand dollars a square foot what if we're turning into one of those cities in other
words these prices could be a permanent thing it's definitely something we need to consider so the
million dollar question is and no pun intended how long until these prices start going down
how long can home prices continue going up and up and up the truth is these are unprecedented times
in the raleigh real estate market and the national real estate market and no one knows for certain
what's going to happen or how long it could possibly last and while other markets around
the country are starting to see inventory creep up and home prices start leveling off that's just not
what we're seeing here in raleigh as you can see from this graph from redfin home inventories in
the raleigh area have dramatically decreased over the past year while demand has gone to historic
highs the orange line is 2021 while the red line here is 2020. so you can see we have half the
inventory in 2021 that we had in 2020. it's just crazy out there compare that to other major cities
again the orange line is 2021 and the red line is 2020. you can see their inventory is
dramatically creeping up some have even exceeded inventory levels from 2019. so we predict here in
the raleigh area that things are going to start leveling off that housing inventory is going to
start creeping up a bit it hopefully will start happening in the fall but most likely it's going
to be in 2022 and home prices will continue to go up just at a more gradual rise but then as
things start leveling off we predict you're going to see locals who have been priced out
of the market recently in the last couple years start getting back into the market coupled with
the people who've come in from out of town decided to rent for a while just to see what the area is
like and possibly because they couldn't afford to be in the market those two groups are going
to start coming in and start buying up houses which will of course cause prices to go back
up again so what about your specific situation is now a good time to buy or sell we've been telling
people for the past year that if they can afford to buy a house they need to go ahead and do it
they shouldn't wait for a crash to happen that's going to make homes become a deal because it looks
unlikely that a crash is going to happen anytime soon our advice don't play the market and wait
for the best time to buy a house because that's probably never gonna happen if you sit on the
sidelines and continue waiting and waiting when waiting it's likely you could end up priced out
of the market we had people reach out to us about six months ago interested in buying a house they
decided to sit on the sidelines and wait it out and now the house that they could have bought for
$500,000 six months ago is now worth $550,000 or more bottom line buy a home when you're ready
don't try to play the market it almost never works out in your favor and if you're thinking
of selling your home know that you are in the driver's seat many many buyers are willing to
buy your home and give you an opportunity to stay in that home for no cost or a low cost until
you're able to find your future home or until your future homes ready which makes your move
seamless and of course makes you not be homeless we are happy to discuss all these strategies with
you if you're thinking about selling your home to make it so that your home sale is a successful one
so what has your experience has been in the current housing market comment below and be
sure to check out this amazing video we filmed a few weeks back don't forget to give us some
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