Residential New Construction Increases, Mortgage Rates Steady

Local Market Update – November 2019

In November, the Federal Reserve reduced its benchmark rate for the third time this year. This action was widely anticipated by the market. Mortgage rates have remained steady this month and are still down more than 1 percent from last year at this time. Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units.

New Listings in the Triangle region decreased 1.1 percent to 3,119. Under Contract Sales were up 22.2 percent to 3,192. Inventory levels fell 10.5 percent to 7,999 units.

Prices continued to gain traction. The Median Sales Price increased 3.7 percent to $279,900. Days on Market was down 3.0 percent to 32 days. Sellers were encouraged as Months Supply of Inventory was down 14.8 percent to 2.3 months.

While many economic signs are quite strong, total household debt has been rising for twenty-one consecutive quarters and is now $1.3 trillion higher than the previous peak of $12.68 trillion in 2008. While delinquency rates remain low across most debt types (including mortgage rates), higher consumer debt loads can limit future household spending capability and increase risk if the economy slows down.

Click on the links below for more detailed information about the Real Estate Markets in Durham, Orange & Chatham counties:

Durham County
Orange County
Chatham County

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. ©2019