The first months of 2020 sent the nation into a spiral of uncertainty. The economy plummeted. Interest rates plummeted. Unemployment skyrocketed. But now that businesses have begun to reopen and people are finally returning to work, many would-be home buyers and sellers are wondering just what the Raleigh real estate market looks like during the summer of 2020.
What’s in Store for the Raleigh Real Estate Market This Summer?
Many expected the real estate market to crash along with the economy, but in fact, there’s been somewhat of an opposite effect. Low interest rates and growing buyer demand have actually led to a surprisingly robust summer market. Here’s what you can expect from the summer housing market in the Triangle.
Interest rates are rock-bottom low
If you’re at all interested in buying or selling a home, you’ve probably heard that interest rates are low right now. In March, the Federal Reserve slashed interest rates, and since then, mortgage rates have hovered at or near 3%—lower than they’ve ever been in history.
These rock-bottom rates have piqued the interest of hesitant buyers, drawing many out of their homes and back into the market. Some buyers have even made purchases virtually, without ever having seen their new home!
It’s definitely a seller’s market
Business closures and social distancing measures forced thousands across the Triangle area back into their homes. And for many sellers, that meant pushing pause on their home-selling plans, or even removing their homes from the market entirely.
Buyers, however, have remained quite active, driven in part by those low interest rates. The result is a fast-moving seller’s market where demand often far outweighs the number of homes for sale. This is great news for sellers, but could lead to some steep competition for buyers.
Prices are holding steady
While many predicted that home prices would fall in response to the pandemic, the opposite has actually proved true. From January through April, sales were up 6.9% compared to last year. And while sales fell a bit in April, during the most severe weeks of restrictions, prices actually increased 3.6% in the same month.
Now, with the economy and the state reopening, prices are once again on the rise. Many homes even receive multiple offers within days, especially if they’re priced below $400,000.
Many are relocating from larger cities to suburbs
For years, the Triangle market has been bolstered by jobseekers relocating to the area in search of work at the Research Triangle Park or one of the major research universities. This trend is only expected to continue as people from major cities in New York, the DC metro, or even California migrate from high-density areas to more suburban metros like the Triangle.
For Raleigh, this could mean even more buyer demand as the metro continues to attract new residents from across the nation for its low cost of living, thriving job market, and quieter, more suburban feel.
Thinking of Making a Move in the Raleigh Area?
Are you thinking about buying or selling a home in the Triangle but not sure if the timing is right? HTR would love to answer any questions and talk through your real estate goals. We ultimately want to help you make the best decision for your personal situation—whether that’s buying, selling, or staying right where you’re at! Give us a call and let’s chat!