Raleigh, the capital and the second-largest city of North Carolina is home to 1,547,000 people which is a 3.27% increase from 2021. Over the past years, Raleigh has been named as one of the top cities in the United States to live and work.
Raleigh has become the perfect combination of a family-friendly and developing city, with its rapid growth in balancing business while maintaining a good quality of life for families. The southern metropolis has warmth in the air – with a college town feel and greeneries all around.
It has also gained popularity due to the top-notch technology and life science institutions. Rich in culture, stable economy, well-known schools, people-centric atmosphere, and affordability all are contributing factors to Raleigh’s livability score – 78/100.
In this article, we will dive into the housing market of this fast-growing city – and the reason why moving to Raleigh is the trendiest dream for Americans in 2022.
Raleigh’s Real Estate
Rising hot prices are the standard tagline for Raleigh’s housing market. The prices are at their highest – and the news is it will keep increasing all through 2022. It is anticipated that Raleigh will be labeled as the third-hottest market in the United States in 2022.
It has been estimated that the home values will rise to 24% for Raleigh real estate. Therefore, a standard home will be valued at $450,000 – rising from an average price of $391,444. The year 2021 for Raleigh’s real estate market has been successful in terms of low inventory combined with a high demand of buyers – which made it a hot region and will continue to rise through 2022, as well.
Raleigh Real Estate Market Trend 2021-2022
As mentioned earlier, it has been forecasted that Raleigh will see a rise in its home value in 2022. It is predicted to grow at an average rate between the summer of 2022. At present, the Raleigh housing market is undergoing a supply shortage, which directly impacts the rise in home prices.
Raleigh has a record for selling houses in four days from the time it is listed on the market-which has ranked Raleigh second in all of America.
Raleigh Housing Demand
The housing report shows that there has been a fall in home sales since last July. There is a difference of 14.5% in home sales from July 2020 and July 2021 – this is according to Triangle Multiple Listing Service. The good news is, the current sale price is showing a rise in Raleigh.
There has been a significant increase of 23.6% with $375,000 being the median price of home sales during July. The average home sale price rose to $467,805, which is an increase of 27%. Some factors that affect real estate prices can cause a drastic fall in the number of days on market. Compared to last year – there has been a 65% drop from July 2020 to July 2021.
Raleigh Housing Supply Trends
Again, Raleigh has seen a fall in active listings or inventory of homes in the past year. It was seen to have dropped by 44.9% within the fiscal year. The number of months it would take for the home to sell(current inventory) – given the current prices of homes is 0.8 (months of supply inventory.)
To give you a better understanding, a decrease in months of supply is inversely proportional to home prices. Six months of supply inventory is usually correlated with reasonable and affordable prices.
Is Raleigh a Good Place For Real Estate Investment?
The big question – Is investing in Raleigh properties a good idea? Let’s look at whether it is suitable for you or not. Should you invest in Raleigh real estate? Choosing to buy an investment property is a whole new game in comparison to buying something else – like cars or primary residences. You’d want to scrape out most of your money and focus on making a profit from your investments.
To give you a heads-up – buying the most expensive property is not the greatest idea if you are looking to make money from rents on the Raleigh housing market. The better approach would be to buy a decent-sized property in terms of prices and demands that you will hold for the long run. You can opt for moving in or selling as a retirement plan in the future.
A credible real estate data provider has confirmed that the most common housing units in Raleigh have three to four bedrooms, which are mainly single-family homes. There are various types of housing available in the city that include apartment units, complexes, rowhouses, duplexes, and independent homes built into apartments.
Affordability: Real Estate Vs Renting
Homes in North Carolina cost $180,000 on average. For example, you can afford more than a couple of investment properties for the cost of a single middle-class home in California or New York City. Which makes it very affordable with a living index score of 92 out of 100.
The planogram of the city is thoughtfully done in terms of residential use making Raleigh one of the best places to own a property or home. Raleigh currently has a ratio of 51:49 for owner-occupied to rent-occupied properties.
Let’s look at some renting options in Raleigh. Renting a one-bedroom apartment for residential use in Raleigh can cost $1,258 on average. This shows an increase of 22% in comparison to last year. For studio apartments, the rent has increased by 2% – $1,258, whereas for a two-bedroom apartment it increased by 3% – $1,397.
If you are looking into residing in Raleigh, you are probably making one of the best decisions of your life – the housing market numbers depict the city’s development in terms of livability. If you are interested in investing in a Raleigh property, it is wise to think of getting optimum returns for your money.
The overall U.S. housing market demonstrates no signs of slowing down, which will reflect Raleigh’s real estate prices as well. So, right now might be the best time to take advantage of Raleigh’s upward trends in the real estate market.