Back in February 2016 the forecast for Triangle area real estate was rosy. The job market was and is strong, cost of living affordable, and the ocean and mountains are both within a short drive. So is that forecast coming true? Absolutely! But let’s take a closer look at what’s happening, especially with homes for sale in Durham NC.
A healthy supply of housing is six months, but we are facing shortages all across the Triangle, especially in Durham. There was only a two month supply of homes for sale in Durham NC in May, a whopping 35.5% decrease from last May. This shortage of housing is driving up prices and frustrating many buyers who are getting weary of losing out in furious bidding wars that push sales prices well above their list prices.
The flip side to this scenario of course is that sellers are quite happy with the situation. Their homes are going under contract quickly and at higher prices than a year ago. Is this a good thing overall for the real estate market and consumers? I think so, since those sellers will turn around and put that money into their next home, continuing to feed the economy and fuel growth.
The opposite was true during the Great Recession, when housing inventory was bloated and homes languished on the market for years, with many sellers opting to wait it out until the economy improved. The lack of activity in the housing market has a ripple effect throughout the economy, depressing values and spirits.
So while not finding plenty of homes for sale in Durham NC and the rest of the Triangle might make it tough on buyers, the low inventory and high demand is a positive sign that the rosy forecast for our area was spot on. And once you do snag your new home, you will have the enjoyment of watching your investment grow in value as you settle in and enjoy living in the Triangle.