Raleigh home prices have risen by nearly $40K over the last year, market data shows
The red-hot Triangle real estate market is showing double-digit growth in home prices over the last year in Raleigh and Durham, according to recently released data from real estate website Zillow.
The recent rising tide of home sales in the Triangle — driven by competitive buyers — resulted in home prices increasing by 12.3%, or $35,700 in Raleigh to $327,048 since April of last year.
Prices also grew in Durham by a slightly smaller margin of $31,444 to an average of $307,558 in Durham.
This data, which includes the rest of Wake County, exceeds national averages. Typical home values in the U.S. rose by $29,197 and 11.6% over last year, which is the highest annual growth seen since 2005, according to Zillow.
Homes are only staying on the Raleigh market for five days on average before going under contract, the data shows.
Compared to figures across the eight-county greater Triangle region, homes stayed on the market for an average of 27 days and appreciated in price by 15% overall since April 2020, according to Triangle Area Residential Report (T.A.R.R.) data.
Shrinking housing supply
A depleting housing supply has played a role in escalating prices. Zillow data shows Raleigh housing inventory is down 54% from last year, and there were roughly half as many homes on the market in April than a year prior.
“Let’s be clear here, the buyers are driving the price increases,” said John Wood, broker and owner of three RE/MAX United offices in the Triangle.
“There’s material, lumber price increases and the cost of doing business has gone up, so that’s driving (prices) for new construction. But from resales, it is the buyers who are driving it.”
Last month, resale homes in the greater Triangle market sold for 104% of final list price and were on the market for just 11 days before going under contract, T.A.R.R. data shows.
“Two (home) inventory metrics that I track are the number of listings with at least one price drop and those that have been on the market for longer than the DOM (days on market) of the closed listings,” said Stacey Anfindsen, author of the T.A.R.R. Report. “The decreases in these metrics compared to April of last year were stunning,”
Historically, between 30% and 35% of homes for sale at the end of the month had at least one price drop from the original listing, but Anfindsen noted the percentage of these homes by the end of April was just 11%.
The Triangle is a national leader in homebuyer competitiveness, thanks in large part to the coronavirus pandemic accelerating a pre-existing high demand for homes and the local economy’s resilience in job markets.
Raleigh was rated the third most competitive housing market in the nation by Charlotte-based mortgage lending site LendingTree.
But the competitiveness has also been statewide, causing North Carolina to see a home price increase of over 10% for the first time in 30 years, according to the Urban Institute.
This story was originally published May 21, 2021 at 6:45 AM with the headline "Raleigh home prices have risen by nearly $40K over the last year, market data shows."
