Understanding the Triangle's Hot Housing Market
While the housing market is beginning to cool off in some cities, North Carolina’s Triangle area shows no signs of slowing down.
For the first time since the pandemic, buying real estate has begun to grow easier and more affordable in many areas across the United States. While we’re not quite in buyer’s market territory, inventory is largely on the rise and the initial “frenzy” that came alongside the pandemic is finally slowing down.
However, the housing market in Raleigh, Durham, and Chapel Hill — also known as North Carolina’s Research Triangle area — tells an entirely different story.
Median Prices Are Rising
Compared to a year ago, homes in the Triangle area are now selling for 20% more. Median home prices have increased by over $57K in the last year, making housing less and less affordable in this desirable area.
As remote work grows more common, those who used to be tied to cities like San Francisco and New York City for work are turning to areas with a lower cost of living and more alignment with their priorities. For many, that means a move to an area like the Triangle. In addition, local moves have increased since the beginning of the pandemic due to the need for more space and the opportunity supplied by lower interest rates.
Inventory Is Dropping
Housing inventory in the Triangle has dropped by a whopping 70% in the last year, leaving even buyers with deep pockets competing for homes. Homes only stay on the market for 12 days on average before going under contract — half as long as they did last year. After the pandemic’s regulations and supply shortages slowed down builders for months on end, there simply aren’t enough existing homes to keep up with the steadily-increasing demand.
Buyer Implications
Between the surge in demand and the dip in inventory, buyers commonly find themselves in one bidding war after another, making compromises on existing homes that may or may not align with their priorities.
For many, especially those working from home, a small sacrifice in location does the trick. While North Carolina as a whole has seen rising demand in the last year, some zip codes are more expensive - and competitive - than others. Especially near the Triangle, suburbs and less-populated areas have seen higher interest than before. Trends suggest that many buyers would prefer plenty of space to close proximity to a downtown area.
Still, the current seller’s market is unforgiving for buyers in every price range, even after a few sacrifices. For many, losing out on bid after bid only to come up empty handed — or watching others do so and preemptively weighing options — carries its own expiration date. Others set out to search for homes in their ideal area, only to find that there aren’t existing homes that meet their criteria as far as layout, lot size, or number of bedrooms.
In these situations, many buyers choose to build their own homes. Custom building is an ideal route for creating a home that truly fits your priorities, whether those are related to location, style, yard size, or upgrades. In a market like this, most buyers are finding that buying an imperfect house with the intent to renovate rarely makes financial sense. But with a custom build, you can move into your dream home and stay in the driver’s seat every step of the way.
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