2020 is officially over—so how did it go? I’m discussing it here.
Now that we’ve moved into 2021, it’s time to talk about how things went in the Triangle real estate market in 2020:
Home prices are one of the more common statistics that people ask me about; compared to previous years, Triangle home prices increased by 7% in 2020. The average price for a home is $338,000, which is a record high for our market.
The real issue we’re facing is that there are 3,700 homes on the market, which is down by 51% over last year. At the end of 2019, there were around 7,500 homes on the market. Earlier this decade, there were 20,000 homes available. This lack of inventory is causing problems for buyers in the market, who are finding themselves without many options and with a lot of competition.
“Durham is No. 1 on PwC’s list of
top real estate investment markets in 2021.”
Many people blame our inventory shortage on home builders, suggesting that they aren’t keeping up with demand. However, at the end of 2020, around half of all available homes were new construction, which is way higher than usual. The real problem is that few people are moving out of the area, but lots are moving in. People’s hesitance to move is exacerbated by the stay-at-home orders brought about by the pandemic.
If you’re in the market to sell, on the other hand, you’re in a very good position. People are moving to the Triangle area, so if your home is on the market, you’re likely to receive multiple offers for it and get the top price when you ultimately sell if it’s priced correctly and in good condition.
So what will this year bring us? PricewaterhouseCoopers recently came out with a list of the top real estate investment markets in 2021, and guess where Raleigh-Durham ends up? That’s right, we’re No. 1 on that list. That means more jobs are coming to the area, more people are moving in, and there are fewer homes available than there are buyers.
If you’d like to discuss what these market conditions mean for you and your home search/sale, don’t hesitate to reach out to us. We’d love to help you.