Raleigh, N.C. — The Triangle’s hot housing market is holding strong against a national cooling off. But that’s making it hard for some people to buy a home in the Triangle.
A new report from the federal government shows sales and construction of new homes fell in June – but there’s no sign of slowing here in the Triangle.
Part of the issue is a serious shortage of supply in the Triangle, which isn’t enough to keep up with demand.
The report shows inventory is up nationwide, enough to meet demand for a little over six months – but here in the Triangle, there are only enough homes for sale to keep up with about two and a half weeks worth of demand.
The latest local market update from Triangle MLS shows a 17% increase in inventory from May to June, but that’s still 60% less than last year.
“We’re looking right now active homes on the market in the five county area – 1500 homes right today. We should be close to 10,000 right now,” said Chris Morton, lead broker for The Morton Group.
Many families halted move plans during the pandemic – now they’re stuck
Morton’s client Peter and Diane Lebovitz put off their move from New Jersey to Raleigh during the pandemic.
Now, they’re finding their options are limited.
“I would have hoped we’d find three or four houses we liked and have a hard time choosing which one. It’s the opposite,” said Lebovitz. “We can’t find any we even want to choose from.”
Morton said he’s working with about 40 buyers like the Lebovitzes right now – with more looking to move here every day.
“Huge demand coming in. People are not selling their homes,” said Morton. “And when you have supply that’s low, demand that’s high, it’s a disaster.”
Morton encourages buyers to know exactly what they’re looking for and don’t waste time.
Costs are going way up, too. The median sales price in the Triangle is up 23% year-over-year.
Home sellers are getting $20,000 to $100,000 – or more – over asking price, according to Morton.
What about new construction?
Construction permits help point to new homes to come – but those numbers are down.
Nationwide, new single-family home permits dropped 5.1% from May to June.
WRAL requested permit totals from communities across the Triangle. Several towns saw a decrease from May to June.
Permits are down year-over-year in Clayton and Johnston County.
But in Cary and Fuquay-Varina, requests are up more than 140%.
Garner jumped by 235%,
WRAL TechWire reporter and realtor Jason Parker breaks down what all this means for the Triangle market.
“We’re coming up on the end of summer, so you may see some changes that occur in a real estate market — but just because there are changes doesn’t mean those changes are permanent,” he said.
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