Local Market Update – December 2018

Home prices were consistently up again in most markets in 2018 but at reduced levels compared to recent years. High demand for few homes for sale fueled price increases, but evidence is mounting that inventory will finally improve in 2019. This may apply some downward pressure on prices for beleaguered home buyers. A fourth interest rate hike by the Federal Reserve in 2018 spooked the stock market to close out the year. The Fed has indicated that the number of rate increases in 2019 will be halved, which may be of little comfort to an already compressed consumer.

New Listings in the Triangle region decreased 2.0 percent to 2,185. Under Contract Sales were up 6.3 percent to 2,258. Inventory levels rose 2.6 percent to 7,705 units.

Prices continued to gain traction. The Median Sales Price increased 4.9 percent to $269,500. Days on Market was down 12.8 percent to 34 days. Absorption rates were even with last year as Months Supply of Inventory remained flat at 2.3 months.

Unemployment rates remained remarkably low again in 2018, and wages continued to improve for many U.S. households. It is generally good for all parties involved in real estate transactions when wages grow, but the percentage of increase, on average, has not kept pace with home price increases. This created an affordability crux in the second half of 2018. Housing affordability will remain an important storyline in 2019.
Click on the links below for more detailed information about the Real Estate Markets in Durham, Orange & Chatham counties:
For information about how the local market affects your real estate needs, contact any of the real estate experts at Peak Swirles & Cavallito Properties. *All data from Triangle Multiple Listing Service, Inc. ©2018