Triangle home sales rose in August, increasing 3 percent over July – an increase that is typically seen in June or July.
Stacey Afindsen, a Cary appraiser who analyzes Triangle Multiple Listings Service’s data, said homes that went under contract in January and February took much longer to close than normal, causing the spike of 3,055 closings during August. Compared with August 2015, closings were up 16 percent.
Steady price appreciation of homes continued throughout the month as a lack of inventory in lower-priced homes drove up both prices and demand. The average price of homes sold in the Triangle was $284,000.
The lower-priced market continues to be somewhat of a feeding frenzy, as properties for sale tend to have multiple offers within the first 24 to 48 hours, Afindsen said. As a result, homeowners are choosing to stay put, because there is not enough inventory on the market to purchase within their price range.
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Homeowners’ unwillingness to sell resulted in a 1 percent inventory decrease from July to August, according to the MLS data.
Afindsen doesn’t see the the market loosening anytime soon.
“I don’t see the trend of lacking inventory reversing itself in the future,” he said. “Right now we have good jobs and good incomes. There’s essentially no new construction for homes under $300,000, so demand for detached homes is going to remain strong.”
Houses sold in August spent an average of 34 days on the market, and homeowners continued to gain home equity especially in the market priced under $300,000.
The combination of low inventory and move in buyer equity has created the perfect formula to produce house price gains that exceed wage gains in the Triangle this year.