Raleigh/Durham Area Real Estate Forecast 2020 – As in recent years, the Triangle real estate market is expected to prosper in 2020. Local and national indicators show that 2020 will be a strong year in the Raleigh/ Durham/ Chapel Hill area. The local economy is expected to bring more jobs and continue our low unemployment rate. Rents are increasing for both apartments and private rental homes, so residents who can buy are motivated to do so to help keep within their monthly budget.
Location is relative in the Triangle area. We have grown in all directions so smaller suburbs like Holly Springs and Knightdale are growing by leaps and bounds because that is where builders are able to find land to build new homes.
Buyers want to maintain a reasonable commute to work and/or the RDU airport. A 30-minute drive to work is the preference, but as traffic increases, buyers are choosing homes on smaller lots or older homes to keep reasonable drive times. Even with more buyers working from home full-time or a couple of days a week, they want to stay convenient to the gym, places of worship, and leisure such as golf, tennis or swimming.
Schools are also a big factor. Buyers with school-aged children are doing online research and telling their buyer’s agent which schools they want. Some current Triangle residents are selling and moving elsewhere within the Triangle to have their children attend a particular school (be it public, charter, or private).
Also, area residents attending grad school want to buy within a short commute to Triangle colleges and Universities. My clients have mentioned graduate programs at NC State, Duke, UNC-Chapel Hill, and Campbell Law School.
The National Association of Realtors (NAR) forecasts several areas that will have expected house appreciation higher than the rest of the U.S. The Raleigh/Durham/Chapel Hill area is on the list. The actual rate of appreciation varies throughout the area depending on price range and location.
Predictions from NAR, Zillow, Redfin, and Realtor.com all indicate that mortgage interest rates are expected to remain around 4% or less throughout 2020. So, while home prices continue to increase, low-interest rates will help buyers with home purchases. Buyers should not expect to be able to get much help from sellers to pay their closing costs. Even new construction offers of paying closing costs are often built into a higher interest rate, so buyers are not necessarily getting the best deal if they need help to pay their closing costs.
Like many areas, the Triangle is low on new home inventory relative to the number of buyers. As land and construction prices go up, much of the new construction properties under $350,000 are townhomes. New detached homes are being built throughout the Triangle, including eastern towns like Clayton, the southern town of Fuquay Varina, and to the west of Durham in Hillsborough. Most of the new construction is medium to larger subdivisions developed by regional and national builders. It is increasingly difficult to buy a lot and find a builder. The exception to this is a few neighborhoods without builder restrictions that were developed prior to 2008 – people purchased a lot for a future home but their plans changed, so now are selling individual lots.
Raleigh/Durham Area Real Estate Forecast 2020 – Remember that having a trusted real estate advisor is crucial to navigating a strong real estate market. Choosing carefully and knowing when you are making a good investment is what I help clients do on a daily basis. My clients know that I share my expertise from 20+ years in the Triangle real estate market to help them get the most benefit from selling and buying.
If you have any questions or would like to schedule a consultation to discuss your particular situation, feel free to contact me.