Housing market tightens: Raleigh saw nation’s biggest drop in inventory since 2020
The stress created by dwindling supply and soaring prices continued to build in the Triangle housing market in February, newly released data show.
A report from the real estate website Zillow showed that since the COVID-19 pandemic began in early 2020, Raleigh has seen the largest drop in home inventory of the 50 largest metropolitan areas in the country.
Inventory is down 70% in Raleigh over the past two years, according to the report, which showed there were 7,752 homes on the market in February 2020 and just 2,348 last month.
In Durham, the drop has been nearly 50% in the same time frame, from 1,997 homes to 1,006.
Stacey Anfindsen, an Apex appraiser who analyzes Triangle Multiple Listing Service data, noted that inventories of new homes and re-sales are both down. He said rising construction costs, a growing population and the tight market itself were all fueling the dynamic.
“Probably the most impactful thing about COVID is the work-from-home phenomenon,” Anfindsen said. “People aren’t leaving their homes. Then there’s the factor of people not having other options.”
Realtor Aimee Anderson said it’s the most stagnant market she’s ever seen for buyers in Wake County.
“Literally no inventory — none. My numbers are down 70% over the last year,” she said. “Your phone doesn’t ring anymore.”
Gerald Mack, a real estate agent based in Durham, said with prices up and inventory down, buyers are having to adjust their expectations.
“You have to hold back on some of your wants, because if you don’t have an unlimited budget, you’re going to have to adapt to the market,” Mack said. “Any decent house that’s on the market will sell before you even start showing.”
According to Zillow, there were 730,000 homes for sale nationwide in February, half of the 1.4 million on the market in the February 2020, before the coronavirus pandemic upended the country.
“Historically, inventory has generally bottomed out in December and then rebounded as sellers listed their homes in preparation for the busy spring shopping season. But this year, supply has continued to dwindle well into the new year,” Zillow market analyst Nicole Bachaud wrote.
According to Zillow, here’s where the for-sale inventory of homes have seen the largest percentage decline since 2020:
- Raleigh: -70%
- Hartford, Connecticut: -63%
- Providence, Rhode Island: -62%
- Miami-Fort Lauderdale, Florida: -61%
Home prices up again in Triangle in February
As inventory plummeted, home prices continued to climb to record highs. The median sale price in the Triangle region was $374,900 in February, according to Triangle MLS.
That’s up 24% from last year.
Wake County reached a median sale price of $435,000, while Durham County hit $390,000, according to Triangle MLS.
Nationally, the median home price was $345,000 in February, according to RE/MAX, the highest figure the real estate company has ever reported.
Homes are spending an average of 17 days on the market, according to Triangle MLS data.
When asked how long their homes were spending on the market, however, both Mack and Anderson gave the same estimate: zero days.
“Most of my listings are sold before they go live, just because they’re getting insanely high home prices,” Anderson said, noting that she had seen a flurry of interest from international investors. “You put home on the market for $500,000 and get a cash officer for $580. It’s insane. How are you not going to take that?”
Anfindsen said while many houses are getting snapped up immediately, some have been on the market longer.
Nick Bailey, president and CEO of RE/MAX, said the stage is set for an active spring.
“Buyers, feeling pinched by inflation, are snapping up new listings and racing to take advantage of near historically low rates before they go up. It’s clear the dream of homeownership is still top of mind for many Americans,” Bailey said in a news release.
This story was originally published March 24, 2022 at 5:40 AM with the headline "Housing market tightens: Raleigh saw nation’s biggest drop in inventory since 2020."
