There are roughly half as many homes for sale in the United States currently as there were before the outbreak.
Raleigh is particularly affected by the dwindling inventories. According to Zillow’s most recent monthly market report, Raleigh’s market has seen the biggest drop in inventory over the last two years.
According to Zillow, there are 70% fewer houses on market in Raleigh now than in February 2020.
Everything came together as a result, creating this inventory chaos. Right now, we don’t have any inventory. It’s only a few sentences long “Otto Cedeno, a Triangle realtor and the CEO of Movil Realty, explained.
Cedeno noted that, in addition to a dearth of available homes, new development is being held up due to a lack of materials and supply chain issues. Inventory in the area has dropped by 16 percent in the last month.
Due To Dwindling Supply And Rising Demand, Prices Will Continue To Rise
Raleigh’s average home value is $133,000 higher than it was in February 2020. Raleigh was once again placed among the top market for monthly value growth in Zillow’s most recent study.
“You have to put money into the game if you need to compete in this market; that’s the only way you’ll be able to buy a home,” Cedeno added. “We need inventory, therefore our agents are more concerned with getting listings than with finding purchasers.”
According to Zillow’s latest research, property values in the United States have increased by 32% in the last 2 years.
Rent increases while housing prices stay high.
Renters are paying about $300 more per month than they were before the outbreak. The average monthly rent in Raleigh is roughly $1,600, up 22 percent from 2020. Rental vacancy rates were near all-time lows, according to Zillow, and rising nearly as quickly as home values.
The demand for more affordable housing is growing, but finding it is becoming increasingly challenging.
The affordability issue is that those with more money can outspend those with less. So it’s critical that we focus on the broader housing market and try to move forward initiatives that solve the bidding war piece, as well as move forward and really focus on supporting those of us in our community who are more vulnerable “Alecia Arnold, Wake County’s deputy director of housing, said
According to Arnold, the inflow of government cash during the epidemic has allowed the county to launch new pilot initiatives.
The county is seeking to offer developers financial incentives and subsidies to reduce foreclosures if they maintain units affordable.
Over the last three years, efforts have resulted in the creation of around 2,500 new affordable rental & ownership apartments.
“”We don’t need to carve someone out to create way for them,” Arnold explained. “By establishing novel opportunities for those thing to exist, we want to create it an opportunity for everyone.”
According to Arnold, the county plans to commit additional resources in the future to help link extra residents with affordable home ownership alternatives.
“The goal is to construct a ladder. As a result, we need people to be able to work their way up the housing ladder rather than being stranded in one place “she stated
Arnold also mentioned that there are more people talking about modifying land use & density policies.
“We have to begin to think regionally from the county level & locally about how they continue to push out our residential trends & regulations as it relates to the increase that we’re experiencing,” Arnold said.
Cedeno is optimistic that inventory will recover. He estimates that roughly 2,200 permits for new building have been pulled in the Raleigh-Durham region.
“Consider this: 2,000 homes are being built in the neighborhood, plus individuals are moving in & putting their homes on the market, and borrowing rates are rising, so many people will be unable to purchase. As a result, the market might be a little more stable “Cedeno explained.
According to Zillow, annual property values will continue to grow until February of next year. This year, more than 6 million homes are likely to be sold in the United States.