As the state moved into the second phase of re-opening, the real estate market began to show the accelerated signs of the pent up demand that we typically see in the busy summer buyer and selling season.
Home prices continue to appreciate as the buyer demand for housing in the Triangle has yet to let up. This June saw more home go under contract since 2016 and the current numbers are pointing to July remaining as busy, if not busier.
The main barrier to the real estate industry at the moment is creating the supply that many buyers are having a hard time finding. Home builders continue to struggle to meet demand and we see the trend for new housing permits continue to increase in the Triangle area.
All of this highlights an important point – the stock market, the economy, and the real estate industry are not bell weathers for each other. The American economy has multiple variables which dictate whether we’re advancing or regressing. The stock market is an indicator of investor confidence, and is often divergent from mainstream consumer mentality.
The real estate market, while tied into both sectors, is often unaffected on a large scale from micro shifts in either sector, with 2008 being the exception as that particular recession was triggered by a concentration of issues within real estate.
The Triangle market remains one of the strongest housing markets in the country, and it will take several months of oversupply for us to even get back to a “balanced” market. All of this combines for good news for the back half of 2020 and beyond.