Raleigh-Durham is beginning to look a lot like Silicon Valley, the tech capital of the world, and major contributor to the housing market of San Francisco and it’s surrounding areas. Like Silicon Valley, not only does Raleigh-Durham’s Research Triangle Park (RTP) create a multitude of jobs it is also responsible for driving up much of the area’s home prices.
If you happen to be a buyer looking for homes around Raleigh-Durham such as Northwest Raleigh, Cary, Apex, Downtown Durham, or Morrisville you probably have been introduced to a reality where homes are selling for well above asking price, multiple offers, and 1 day number of Days on Market. There is a reason for this.
In addition to the number of people moving into Wake County on a daily basis (around 63 people a day according to Wake County Economic Development) workers out of RTP are also responsible for driving up prices. In many cases, around the RTP area, homes are selling for approximately 6% above list price with many buyers paying cash. As a result, buyers who can no longer afford the RTP market, but prefer these locations due to schools and commute time to work, are finding out that they must look else where to secure a home.
In Wake County, the average sales price, for the first quarter of 2017, has been $308,742 with Durham seeing a house appreciation of 9.54% which towers over the nation’s annual housing appreciation of 6.1%. Like Silicon Valley, buyers are beginning to find themselves priced out of the market.
It was only three years ago where the the average home price for the Triangle was about $240,000 but now things have changed and home buyers have to be prepared to compete for prime locations as well as secondary locations (areas near prime real estate).
Is this a bubble? Probably, but no one can predict when the bubble will burst nor can one predict how this bubble has forever changed the Raleigh-Durham market. It could very well be that a correction occurs in the not too distant future but it cannot be assumed that prices will ever see the levels they were at back in 2008-2012.
Like all markets, the real estate market evolves over time, and it might be safe to say that Raleigh-Durham’s housing has entered into a new market category.