SPOTLIGHT: NORTH CAROLINA
“With first timers, a lot of them would like to have something at a lower price point,” he said. “They’re not going to find a detached home for under $200,000 unless it’s in bad shape and needs a lot of work. “You also have a lot of investors coming in and even those are competitive to rehab properties, plus land prices have gone up. It makes having a buyer a real challenge,” Peters said. “It’s much easier if you’re looking at something for $400,000 and up.”
dynamics of what you can buy,” he said, adding that just a couple of years ago an investor could buy at $200,000 and fix up and sell for $300,000. Now that same property is much more expensive out of the gate. “Now you buy, manage the property for a certain time, then down the road come back and fix them up and sell them. You’ve rented them out and managed them and you’ve created your own inventory for later.”
the Durham-Chapel Hill metro area and down 28 percent in the Raleigh metro area compared to a year ago. A total of 3,353 units were sold in the Triangle area (including new homes), a 21 percent increase for March 2017 compared to the same month last year. Average sales cost was $276,912, a 7 percent annual increase, reported the NCAR. Trying in The Triad Comprised of the Greensboro-High Point and Winston-Salem metro areas combined, the Triad is the third largest population center in the state. NCAR reported the sale of 1,742 units in the Triad during March 2017, up 16 percent from March 2016. The average home cost during the month was $180,516, an 11 percent annual increase. For the first quarter of 2017, ATTOM Data Solutions reported that housing affordability is still better than historic norms in all areas of the Triad. Flipped properties accounted for 5.2 percent of total home sales in Greensboro-High Point for 2016, and 5.7 percent of all sales in Winston-Salem. For the first quarter of 2017, FHA sales in Greensboro-High Point were down 18 percent, and cash sales were down 4 percent while sales to institutional investors rose 10 percent for the period.
With first timers, a lot of them would like to have something at a lower price point. They’re not going to find a detached home for under $200,000 unless it’s in bad shape and needs a lot of work.”
Brian Peters Broker, Fonville Morisey Realty, Raleigh
With room to build and land prices rising, Peters said it’s impossible for builders to come in and put up a project at the $200,000 price point. With limited space he is seeing a lot of older neighborhoods with homes being torn down and two to three houses being built on the same lot. “Definitely a large amount of business has been investors. For a long time when the market was switching you were able to buy properties and flip them. It’s so competitive now that it’s changed the
According to ATTOM Data Solutions, the median sales price in Raleigh rose 11 percent for the first quarter of 2017 to $232,000 compared to the same quarter a year earlier. In Durham, the median sales price was up 3 percent year-over-year to $190,000. Flips accounted for 5 percent of all home sales in Durham-Chapel Hill in 2016 and 4.4 percent of all home sales during the year in Raleigh.
In Winston-Salem, FHA sales were down 8 percent, cash sales were up 5 percent,
For the first quarter of 2017, total distressed sales were down 17 percent in
ATTOM Data Solutions • P22
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