Editor’s Note: Each Friday, WRAL TechWire takes a deep dive into the Triangle’s real estate markets. In recent weeks, we’ve covered how to win in the Triangle real estate market as a buyer and how sellers can prepare a home for sale in order to get top-dollar offers.
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RALEIGH – The National Association of REALTORS expects that the real estate market in the Raleigh metropolitan statistical area will outperform the nation in 2023.
So much so that the forecast, released this week by the NAR ranks the Raleigh region as the second most likely real estate market to “outperform other metro areas in 2023.”
The region trails only the greater Atlanta metropolitan region, according to the forecast.
Overall, Lawrence Yun, the chief economist and senior vice president of research at the National Association of REALTROS, forecasted a total of 4.78 million existing homes would be sold across the United States in 2023.
He also forecasted that home sale prices, for existing homes, would remain stable in 2023, and that Atlanta and Raleigh would be the top markets expected to outperform other metropolitan areas.
And Yun also forecasted that rents would continue to rise. Raleigh area asking rents rose at a rate of more than three times the national inflation rate year-over-year, according to the most recent analysis from Redfin and the latest Consumer Price Index.
Rents in Raleigh soar at fastest rate in top 50 US cities, report says
How high might home prices rise in the Triangle?
“The demand for housing continues to outpace supply,” Yun said in a statement. “The economic conditions in place in the top 10 U.S. markets, all of which are located in the South, provide the support for home prices to climb by at least 5% in 2023.”
And in Raleigh, a corresponding report from the National Association of REALTORS notes, the job market remains robust and “it’s not slowing down anytime soon.”
The Triangle region “has been recognized as one of the fastest-growing tech hubs in the country,” the report notes. Further, the currently available data shows that “buyers have more options in this area as a single-family permit is issued for every 3 new jobs.”
And those jobs are coming. A spokesperson for the North Carolina Department of Commerce confirmed to WRAL TechWire this week that the state has surpassed the previous record year – which came last year – when it comes to the number of jobs announced and investment announced statewide.
“2022 has been another year of record performance, and it is proof that North Carolina is the best state to do business,” said Christopher Chung, CEO of the Economic Development Partnership of North Carolina.
“We’ve announced projects in industries ranging from food and beverage manufacturing to electric vehicles, batteries, and pharmaceuticals, totaling more than 27,000 jobs and more than $17 billion in capital investment,” said Chung. “We credit this banner year to our world-class education system and highly skilled workforce attracting the world’s top businesses.”
Triangle investors, home flippers are slowing down – but still buying
Investment continues to pour in to the Triangle
Much of that is coming to the Triangle, too, as Wolfspeed plans to invest $5 billion in Chatham County, and VinFast is set to invest $4 billion in Chatham County, as well, while it also plans to take the company public.
That’s not to mention the continued expansion of Apple. Or the ongoing growth of Google’s engineering hub in Durham. Both were announced in 2021.
But it’s not just job growth coming to the region. Raleigh is the second fastest-growing metropolitan region, as well, an analysis of U.S. Census Bureau data found.
The region, too, is still attracting investors. Elsewhere in the nation, investors have pulled back from acquiring residential real estate due to ongoing macroeconomic uncertainty.
Raleigh metro is second fastest-growing metro in the U.S., study finds
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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.
