Source: Wikipedia.
When there’s less inventory list prices usually rise but this hasn’t happened in Raleigh. Even though there’s significantly less inventory on the market in Raleigh compared to last year, list prices have not drastically increased so rather than heading into a seller’s market Raleigh is actually showing balance. With mortgage rates at a low though, this is a good time for buyer’s to purchase.
Inventory Down in Raleigh
If you look at last month’s total inventory in Raleigh there are more homes listed for sale right now, but numbers are still far short of this time last year. Current inventory is 2,190, which is a 6 percent increase from last month’s figure of 2,075, but we’re still down 26 percent from this time one year ago when 2,945 homes were listed for sale in Raleigh.
With less homes listed in a market you usually see a decrease in the median days on market – that is, the number of days it takes for homes to sell – and this is certainly true for Raleigh. Last year it was taking 64 days to sell while today we’re down to 52 days – this is 19 percent lower than last year, which again is a significant difference. Even though more homes are listed today, the median days on market is also 5 percent lower than just a month ago, showing signs that there’s plenty of demand from buyers for homes in Raleigh at the current time.
Marginal Increase in List Price
Sometimes less inventory and fewer days on market signifies a rising market, though median list prices are not rising significantly in Raleigh to support this. There has been a 3 percent increase in median list price from this time last year when that figure was $218,000. Last month the median list price stood at $224,500 and today it’s risen by another $500 to an even $225,000.
Looking at the median price per square foot this has risen marginally as well. At $112 per square foot it’s a 1 percent increase over last month’s figure ($111/sqft), and a 3 percent increase over last year’s when it was $109 per square foot.
Buyers’ or Sellers’ Market?
With a drop of 26 percent in inventory over this time last year we’d often be seeing a seller’s market with figures like this. Fewer homes listed for sale means there are less homes for buyers to choose from and so demand goes up, which in turn pushes up the prices. Prices have risen in Raleigh, but at only 3 percent over last year this isn’t a large enough increase to really make the news. Raleigh seems to have a fairly steady playing field right now for both buyers and sellers.
Mortgage Rates at a Low
After a small spike in mortgage rates around the middle of March, rates in North Carolina have continued to go down. Now, at 3.23 percent they are nearly matching the lowest mortgage rates over the last 2 years which occurred at the end of 2012. This makes it a good time to buy homes in Raleigh as you will be able to buy more home for your money. How long this trend will continue is uncertain – statistics show us that usually the only way to go from here is up, so fix in that low mortgage rate while you still can.
