Editor’s Note: Each Friday, WRAL TechWire takes a deep dive into the Triangle’s real estate markets.
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MORRISVILLE – How much is your house worth? Whether your home is located close to a particular grocery store by could have a big impact on its value.
An analysis of real estate and property data shows that living near certain grocery stores may be a factor in the value of your home. And that could make a difference for Triangle residents who are thinking about buying or selling a home in the Triangle in the coming weeks and months.
The new research from ATTOM found that living close to a Trader Joe’s might mean that your home is worth more than if you live closest to a Whole Foods. But owners may see a greater return on their investment when they sell if they live near an ALDI, which tends to be based in areas with much lower average sale prices than areas with Whole Foods or Trader Joe’s, according to the study.
“Smart homebuyers might want to consider where they’ll do their grocery shopping when they’re shopping for a new home,” said Rick Sharga, executive vice president of market intelligence at ATTOM, in a statement. “It turns out that being located near grocery stores isn’t only a matter of convenience for homeowners but can have a significant impact on equity and home values as well. And that impact can vary pretty widely depending on which grocery store is in the neighborhood.”
Right now, preliminary data from Triangle Multiple Listing Service shows that Triangle-wide, median home sale prices are again on the rise after falling from all-time highs recorded earlier this year.
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Where do you shop for groceries?
According to the study, which looked at current average home values as well as five-year home price appreciation, the average home value for property near a Trader Joe’s is $987,923.
In September 2021, Trader Joe’s opened a new Triangle store in Morrisville. According to data on closed sales between July 1 and November 30, 2022 from Triangle Multiple Listing Service, the average sale price of property in Morrisville was above $561,175. One year prior, the average sales price was $473,395. That’s an increase of $87,780 or 18.5% year-over-year in average home sale prices.
Five years ago, the average sales price in Morrisville was $346,846. Across that time span, average home sale prices rose by $214,329, or 61%. That outperforms the national average across the ATTOM data set, which found a typical value increase of 49% for Trader Joes.
Triangle home prices climb even as sales fall to lowest level since 2019
How ALDI, Whole Foods compare
Near a Whole Foods, the ATTOM study found that average home values were $891,416 with a 45% increase in home values in the five year period.
And near an ALDI, the study found that average home values were $321,116, which the data firm said would better align with investor purchases.
“Properties near an ALDI are ripe for investors, with an average gross flipping ROI of 54 percent, compared to properties near a Whole Foods which had an average gross flipping ROI of 28 percent and Trader Joe’s at 25 percent,” the report noted. “Properties near an ALDI have an average home seller ROI of 61 percent, while properties near a Trader Joe’s sit at 58 percent, and 51 percent for properties near a Whole Foods.”
ALDI announced that it would open a store in Hillsborough a year ago. The most recent year-over-year sales data from Triangle Multiple Listing Service shows that the average sale price in Hillsborough increased by 16.1%, from $422,051 to $489,958, between October 2021 and October 2022
An infographic
Image: ATTOM Data Solutions.
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WRAL TechWire reporter Jason Parker, who is also a licensed North Carolina real estate agent, works with journalists from WRAL.com to track and present market data and report on how people are experiencing the region’s changing real estate markets. These special reports will use the category tag “Triangle Real Estate” or “Triangle Real Estate Market.
