It’s quite a conundrum that the Triangle’s home buying and selling market is in right now.
Record prices in our area right now but a really tough market for first time buyers, or for people who want to sell and buy something else without moving twice!
Houses are selling quicker and for more money than they ever have before with the market’s monthly average home sale price surpassing $300,000 for the first time in the region’s history in June, according to the Triangle Multiple Listing Service report.
But because inventory options for buyers also remains at an all-time historic low with about a 2.6-month supply of inventory available in June, potential sellers who aren’t relocating outside the Triangle are having a hard time finding another place to live.
“What I see very different from last year’s market, … is sellers are afraid to sell their home,” observes Kim Hanan, a broker with Fonville Morisey Realty in Durham, noting that the reasons are many.
One, because of the limited inventory on the buy side, sellers know they may not find a home they want to buy or may have to overpay for what they want due to multiple offers driving a list price up sometimes over market value, Hanan says.
Many sellers may bristle at the idea of renting an apartment or house while waiting the market out, or they have specific financial needs that might restrict them from competing on offers from buyers with a better financial ability to purchase a home. “When this happens, this can lead to a whole list of uncomfortable events that may take place,” she says.
Home sales in the Triangle were up 1.8 percent in June over the year prior and up 1.9 percent for all of the second quarter 2017. A year ago, the growth rate was tracking around 11 percent. The slow down in the growth rate has been primarily attributed to the lack of a comparable increase in inventory options. Year to date, home sales are up 6.2 percent in the 16-county area covered by Triangle MLS.
The average home price was up 6.3 percent in June to $300,932, according to the MLS report. The median sales price was up 6.1 percent to $260,000. Home prices have been increasing an average of 4.5 percent to 7 percent every quarter since the second quarter 2015.
by: Amanda Hoyle, Triangle Business Journal