Is Home Price Appreciation Accelerating Again?
At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would increase from record-low levels and put an end to the bidding wars that have driven home prices up over the past twelve months.
However, that increase in inventory has yet to materialize. The National Association of Realtors (NAR) reports that nationally there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.
This has forced those who made appreciation forecasts this past January to amend those projections. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates have all adjusted their numbers upward after reviewing first quarter housing data. Here are their original forecasts and their newly updated projections:
In the Triangle area real estate market, home prices have continued to soar and we may not have seen the ceiling. Jill Dean Rigsbee, the team leader of NC Pro Realty Group says:
Home prices in the entire Triangle region rose over 13% as of March 31, 2021 vs. this same time in 2020. Even in 2020, prices were climbing significantly. In the most desirable zip code regions, the increase in home prices closed was over 15% in many cases. Now, we are talking about the "Apple Factor" in my company. It's amazing that Apple is coming to Research Triangle Park and bringing over 3000 jobs to our area! For us, we added 3000 more buyers to our market, where we are still experiencing the lowest number of homes available in inventory. This may be a contributing factor to cause prices to climb even more.
Entering 2021, there was some speculation that we might see price appreciation slow dramatically this year. Today, experts believe that won’t be the case. Home values will remain strong throughout the year and in fact, continue to climb. Stay tuned for updates on this topic frequently. The Raleigh-Durham-Chapel Hill area real estate market is still a Sellers market and more inventory of homes is needed. Contact us today for a conversation if you are interested in learning more about your situation. info@ncprorealty.com or call 855-MOVE2NC.
