The Triangle remains a real estate leader in 2022

The Triangle real estate market is still holding strong as the year comes to a close. Despite nation-wide concerns about inflation and the rising costs of housing, Raleigh-Durham has continued to show it’s a place people want to call home.

As 2022 wraps up, here’s why the Triangle has been resilient, and where things are headed for the upcoming year.

The Triangle MLS reported the overall Months’ Supply of Inventory in October 2022 shifted to two months, which is a trend up from previous months. A healthy market typically has a six Months’ Supply of Inventory available. Less than six months typically indicates a seller’s market, while a supply of six months or greater indicates a buyer’s market.

Comparatively, the Triangle ended 2021 at a low 0.6 Month Supply of Inventory in December, compared to one month’s supply in December of 2020. By July of 2022, that number increased to 1.5 months. By September of 2022, that number has increased slightly to 1.8. As this number continues to move up, it’s a good sign that the market is normalizing.

New jobs haven’t stopped coming to the Triangle. As fresh biotech and tech jobs enter the market, it’s not just attracting new talent; it’s also affecting the real estate market. As new residents from higher-priced markets—particularly New York, Washington DC, San Francisco, Boston, Chicago, and Seattle—move to Raleigh-Durham, the price points for real estate continue to rise.

A new report from Deloitte says Raleigh is already a key market for luxury real estate. These new markets are increasing the wealth of the Triangle market. It’s also increasing the demand for multimillion-dollar homes despite a cooling of the market in other locations, as evidenced by sales from the Triangle Parade of Homes. This is just part of the demand that will continue to keep the Raleigh-Durham market growing.

As interest rates rose across the United States, mortgage companies were fully prepared for the increase and had already begun their adjustments. Still, the Federal Reserve’s rate increase is doing the work of cooling the market, which is exactly the intention behind raising rates. It’s also helping the housing market normalize across the Triangle.

Here’s why: if you’re looking to buy right now, the current interest rates are helping reduce competition. Current buyers are able to make offers closer to asking price because that competition just doesn’t exist anymore, which is helping to balance what was previously a chaotic market. There may also be options outside of conventional mortgages that can help reduce your rate down the road. Get in touch with a trusted lender like Towne Mortgage of the Carolinas to discuss options that may be best for you.

With less competition, more inventory, and a flux of new residents bringing excitement to the region, it’s still a great time to buy in the Triangle and will remain so well into the coming years.

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