When reading about real estate, it is important to remember that there never has been, will there ever be a national real estate market. All real estate markets are local. Supply and demand in real estate is dictated by what buyers are willing to pay and sellers accept, in a precise location. It is imperative to work with a highly experienced Realtor who can filter the national real estate noise to deliver local real estate insights. We would like to offer some reasons why it is important to debunk this national market myth for local Triangle area buyers and sellers.

Markets to Watch

A local market is influenced by a number of factors and does not exist in a vacuum. Job growth, population growth, housing affordability, proximity to desired activities or amenities, school systems, tax rates and inventory levels are all considerations that ultimately determine desirability and market values. Where New York City may experience certain conditions, the South, the Midwest for example will experience completely different conditions. According to the National Association of Realtors, Raleigh is in the top 5 markets to watch in the United States. Chief Economist for NAR, Lawrence Yun stated that, "The demand for housing continues to outpace supply" He goes on to say, "The economic conditions in place in the top 10 U.S. markets; all of which are located in the South and provide the support for home prices to climb by at least 5% in 2023." For those looking to sell or buy in The Triangle in 2023, this is critical information in terms of understanding our market.

Real Estate Supply and Demand: Then, Now, and To Come

The past few years witnessed wild growth and very limited inventory in The Triangle. We have seen increases in real estate values of approximately 15% per year. At the end of last year, the market saw prices level and time on the market slow, but only slightly. Experts attribute inflation and increase in mortgage rates to be factors for a slight cooling in prices, however, we still are seeing increases in home values in The Triangle. Interest rates doubled as a result of the Federal Reserve's attempts to curb inflation, and this makes borrowing more expensive but the impact is different depending on the location/market and here in the Research Triangle it's been nominal at best. Experts predict inflation will come down in 2023 and thus, borrowing costs should come down. Lawrence Yun again weighed in stating, ​​"After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines." Luckily in The Triangle, we are likely to experience price gains.

Triangle Conditions in the Field

At My NC Homes, we have witnessed a boom in developments in response to tight inventory over the past two years. More people are moving to The Triangle than are leaving. They are working in The Triangle, and enjoying the opportunity it offers as well as the lifestyle. As a result, home sales of existing homes and preconstruction are still booming. What is most important to note about selling your home during this period of time is that the time on the market will be slightly longer than in 2020 and 2021, and some of this is due to borrowing costs, but there are a number of ways to borrow affordably. We wrote recently about borrowing during this period of time, click here to see our suggestions.

If you are considering buying or selling in The Triangle, reading the national news is unlikely to give an accurate picture of the local market. Reading local news is certainly better but even then it may not give you a completely accurate picture of the market. Experienced local Realtors are your best source for detailed analysis. They know what is happening with developments nearby, whether there are buyers looking in your neighborhood, what today's buyer is willing to spend, and how to obtain the right financing. If you are interested in buying or selling in The Triangle, we have decades of experience locally and can help. Contact My NC Homes today.

Posted by Larry Tollen on


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