Summary:
- Inventory will remain an issue, as certain price points remain severely limited.
- Due to the inventory shortage, 2018 will continue to be a seller’s market.
- Baby boomers and millennials will continue to fight over the same inventory as they both move towards the same type of home, albeit for different reasons.
- Interest rates continue to creep upwards, which will push some home-buyers into buying a home sooner than later, while it will eliminate certain groups from purchasing altogether.
- In spite of the lack of inventory, the Raleigh housing market will remain strong due to strong job and population growth.
The Wake County Real Estate Market
Real estate used to be centered on the mantra of “Location, location, location.” While this still plays a significant role, you can add “Inventory, inventory, inventory” to the list of important points that determine a home’s value.
2017 was a healthy year for real estate. In spite of housing inventory shrinking by 7.9% for the year, the average sales price in Wake County went up 6.5% to $287,792.
In fact, gains were recorded in nearly every major category, except for inventory of homes for sale.
Interest Rates
With two interest hikes under their belts to round out 2017, the Federal Reserve has made it clear it thinks the economy is strong enough for continued rate hikes throughout the coming year. The Mortgage Brokers Association (MBA) are the most bullish on rates peaking near 5%.
This increase in interest rates will put pressure on first time home-buyers, as the climbing rates will decrease their purchase power.
Overall, all signs point towards a strong housing market for the Wake and Johnston County areas in 2018. Both counties will continue to experience a seller’s market, as inventory remains tight and interest rates rise.