June 2nd, 2014 4:03 PM by Andrew Walter May
Raleigh, North Carolina (PRWEB) May 22, 2014
April 2014 data point to continued short supply of housing stock in the Research Triangle (Raleigh, Durham and Chapel Hill), as Andy May, the mortgage expert, and Irene Higginson, Realtor, explain the data. Raleigh-Durham-Chapel Hill continues to be a Sellers' Market. As predicted over the last year, home prices are gapping northward in Wake County, up 6.8% year to date through April (median home prices) 2014.
With a housing supply that has fallen to just 4.4 months (up from 3.5 months in January), according to Triangle MLS, this top relocation market will see home prices continue to rise.
Interestingly, due to the bad weather Raleigh experienced (nothing like New York, Chicago, and other frozen tundra areas), there was a slight increase in housing stock supply to 4.4 months from 3.5 months in January. As expected, during the run-up to spring (April) additional homes were listed - but not as many as expected causing a 2.1% decline in the year to date housing stock. Year over year data indicate a 13% reduction in housing stock from 5.1 months to 4.4 months through April 2014.
Here's the additional data: Unit home sales in Wake county are up +1.4% year to date through April 2014. Irene Higginson, Realtor, can provide neighborhood level data when looking more specifically. Additionally, average home prices are rising rapidly. April 2014 home prices are up 4.7% compared with the same period last year (median). The percentage off original list price that a home sells for in Wake County has also risen to 98.2% April 2014; indicating that sellers are getting closer to the original list price (up from 97% at the beginning of the year).
While all this is interesting, what about the future housing stock and unemployment rates in Wake County? Wake County has a super-low housing stock supply of 4.4 months (aka a "Sellers Market").
Couple the housing stock numbers with job growth (and unemployment) and future home prices can be predicted with relative accuracy. According to the Bureau of Labor, despite North Carolina's 2.2% drop to 6.2% unemployment rate - North Carolina ranks as the 30th lowest state in the country. However, the Triangle has some of the lowest State unemployment levels approaching the 5% number (which is approximately 17th if Wake County were compared to states).
Triangle residential home price appreciation should continue to follow a low overall unemployment rate with a short supply of housing stock. Durham and Chapel Hill data can be requested by contacting Andy May, the mortgage expert.
On the National front, the home price market has corrected to within 15% of the 2008 peak. Home prices nationwide are back to 2004 levels and have another 15% to go before hitting the all-time high level of 2008. Nationally, home prices are up 13% year over year and over the last five years they are up 2.8% per year (better than savings rates for sure).
For more information on mortgage loans, call ADRMortgage.com at 919 771 3379 or visit ADRMortgage on the web. Irene Higginson, Realtor, states, "The Triangle has remained a top 5 relocation market due to excellent schools, outdoor activities, and a big city life style at country prices."
Get the most value out of a home sale or purchase by working with licensed professionals that have significant experience. Why risk your biggest asset to an 18 year old unlicensed person at a bank or credit union (these "loan officers" are often times unlicensed, although afforded lofty titles)? Find additional information from Andy May at Andy May's blog. ADRMortgage.com was founded by Andy May in 2005. Refinance, Purchase, VA, FHA, and nearly every loan product - for additional information, please go to http://www.adrmortgage.com or contact Andy May directly. License number 103418.