Writer: Joey Garrand
4 min read July 2021 — The Raleigh-Durham region is one of the hottest residential hubs in the country, and this is no surprise to local residential real estate leaders. These leaders discussed with Invest: the extent of residential activity in the Triangle region as well as the strong fundamentals underlying this growth.
John Wood, President, RE/MAX United
“A major factor that drives the Triangle’s residential market is jobs. We have continued to experience strong job growth over the last five years. The 2021 announcement of Apple building a campus in RTP (Research Triangle Park) and Fujifilm Diosynth spending $2 billion in Holly Springs further fuel the already strong job growth. The local startup scene has performed quite well, coupled with strong investment on the commercial side, which impacts the residential market. Add to this the number of friends and family who follow people who move to the area that are also attracted by the market’s strong economy, affordability, and the high quality of life. A big boost to all of this is the historically low interest rate environment. In 2000, rates were at around 10%. In 2010, rates were below 5% and in 2021 rates are hovering at 3%. These are numbers that we have never experienced.”
Mahala Landin, Managing Partner & Broker, Rachel Kendall Team
“In 2014, it was rare for me to have to drive more than 30 minutes from the major Raleigh area. Now we’re seeing ourselves being pulled as close to an hour away from Downtown Raleigh to get to that entry point and that first-time homebuyer price point. Some of the areas south of Clayton and into Johnston County are growth opportunities that are attracting new major retail and mixed-use type development. That’s obviously going to attract the right jobs and the right economy to those areas to continue that housing burst. But nowadays, I am being pulled west.
Durham has been a strong market for the last two years and it will continue to be a hot market, but the average price point in the Durham area is well above $300,000 and that can be challenging for a first-time buyer. We see ourselves being pulled into Oxford, some areas of Mebane, or places that we didn’t even know were in the Triangle MLS. At the end of the day, that’s a big statement of where new construction will go and that the resale market grows stronger also. Hopefully, more builders will see those opportunities because the land prices are lower and this will help us continue to serve the first-time homebuyer.”
Tina Caul, Founder, The Caul Group
“When I see 40% of homes selling over asking price, the natural trajectory is a continued rise in market value. In a balanced market, there is a five-month supply of housing and right now we’re hovering under a one-month supply. Yet, our market remains undervalued. When you compare a new build to an older constructed home, you’ll find that a person can’t rebuild a house for $350,000 in their market, but when a buyer finds a house in the Triangle under $350,000 they have instant equity in their home purchase. Therefore, this area is a great place to purchase and invest in real property.”
Jennifer Spencer, Owner, Spencer Properties
“The market is like nothing that I have ever seen before. I’m thankful that we handle the volume of transactions that we do because it has allowed us to pivot quickly. A year ago, what would be a winning offer is drastically different from what it is now. I’ve been sitting down with buyers and telling them to “Be Bold” due to what is happening in the marketplace. Right now, the winning offer in our market, for the most part, is 10% or more over list. The idea that we would have this kind of offer with nonrefundable due diligence deposits of $10,000, $20,000, $35,000 or more was unforeseeable. It’s a wild market.”
Johnny Chappell, Owner & Broker, Chappell
“We are lucky to be in a really good place. Compass shared with us that Raleigh is the No. 1 market nationwide for referral requests, meaning that a Minnesota agent is more likely to get asked about Raleigh than any other place in the country. While only anecdotal, this reflects the intense amount of interest in our market from people everywhere.”
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