The National Association of REALTORS released its quarterly Metropolitan Median Area Prices and Housing Affordability Index; the report showed that the majority of the 146 metropolitan statistical areas (MSAs) surveyed have a sever lack of housing stock, driving prices higher.
In North Carolina, 7 cities are classified as MSAs by the Office of Management and Budget, their quarterly Median Home Price changes were:
- Durham-Chapel Hill Area- 7.3% increase
- Fayetteville- 0.4% decrease
- Raleigh- 6.9% increase
- Wilmington- 6.9% increase
- Greensboro-High Point Area- 5.7% increase
- Winston-Salem- 3.6% increase
- Charlotte- 8% increase
While increasing home prices have largely been considered good news, housing affordability has decreased across the country as the supply for home sales has become too small to meet demand. National Association of REALTORS' Economist, Dr. Yun, forecasts a 9.4% jump in construction of single-family homes next year, which should help meet demand and slow price increase; this 9.4% jump will only produce 950,000 new homes, far below the 1.2 million average for the last 50 years, however.
As the federal government begins to take on Tax-Reform, we urge to you to review our positions and take action on our consumer protection website-- many of the exemptions that benefit homeowners (like the Mortgage-Interest Deduction) are on the chopping block and need your help. You'll hear more about this from us soon!
Be sure to check out this month's housing minute!
August, the latest month for which data is available, saw a 1.7% decrease in existing-home sales nationwide, pulled down by extreme weather events in the southern states; this is the 4th month in the last five where home sales have decreased. A national map of home sales over the last year can be viewed here.
- The national labor market continued tightening in the month of August, boosting nominal wages.
- The average commitment rate for a 30-year fixed-rate mortgage fell to 3.88%, its lowest rate since November of 2016.
- Total housing inventory has declined 6.5% since last August, the continuation of a 27 month streak of falling inventory.
- Existing-home sales in the South decreased 5.7 percent to an annual rate of 2.15 million in August, and are now 0.9 percent lower than a year ago. The median price in the South was $220,400, up 5.4 percent from a year ago.
To watch a complete review of market conditions by the National Association of REALTORS' resident Economist, Dr. Yun, click here.Read more
August was a busy month for the state legislature and the U.S. economy!
In statewide news, the North Carolina General Assembly convened to redraw their legislative districts to comply with a U.S. Supreme Court ruling handed-down earlier this year. The new districts will have little impact on the partisan advantages in the House and Senate, but may have changed who is representing you at the state level. If you want to check your voter registration status and see who your representatives are, click here!
- The National Association of Realtors expects North Carolina’s home values to rise 2.7% on average this year with some of the largest gains in Charlotte and the Triangle.
- The Realtors Confidence Index reflects a competitive environment for buying and selling.
- Despite increasing home tours, offers per tour has decreased slightly.
- Home sales slipped 1.3% in the month of July.
- For a complete overview of economic data, click here.