Foreclosures and Rising Home Values in Raleigh

A new report presented by federal authorities indicates that inflation decreased last month. Meanwhile, the consumer price index increased by 3.4%, a slight drop from the previous 3.5%. Now there is curiosity about whether this report could influence the real estate market and interest rates nationwide. According to Freddie Mac, the average rate for a new 30-year mortgage is close to 7.1%.

Real estate agent and founding director of the Coley Group, Gretchen Coley, points out some intriguing trends in the North Carolina real estate market, noting that since January 1, both Raleigh and Greensboro have experienced increases in home values, while Charlotte has seen a decline over the past 30 days.

Coley states that there has been a substantial increase in the median home price and the sale price of homes in the Raleigh market, as single-family homes have risen 14% since January 1, 2024. Across all property types, including single-family townhouses and condominiums, there has been an increase in the sale price of approximately 7%.

Coley goes on to explain that this should be described as a fairly significant increase, as these are values outside the “normal” range, where the typical increase is usually between 2% and 4%.

She also acknowledges that these figures may alarm some people, especially those entering the real estate market for the first time. However, Coley suggests that it could be beneficial to consider different types of homes, and potential buyers can explore various options or opportunities the market offers. An example of this is the 23% depreciation in condominiums during the same period when single-family homes appreciated. Townhouses have only appreciated by 1.8% during that same time frame.

Looking ahead, Coley believes interest rates will remain stable throughout the year and may decrease toward the end of the year. However, she thinks that waiting to buy a home may not allow one to benefit from homeownership, as she now sees an opportunity to make a solid investment, live securely, and gradually build wealth.

Finally, Coley mentions that there is a very good reason to buy a home at this time. The Federal Reserve’s triennial study comparing the net worth of renters and homeowners shows that this year, renters had a net worth of approximately $10,000, while homeowners had $396,000.

Despite the slight drop in inflation rates on Wednesday, Federal Reserve officials recently stated that the significant interest rate hikes over the past two years may take longer than expected to reduce inflation.

Regarding mortgage rates, the gap between new rates and the average existing mortgage rate is the largest since the 1980s.

Available foreclosures:

Raleigh: 120 homes available.

Greensboro: 85 homes available.

Charlotte: 150 homes available.

By Elias DaSilva | October 10, 2024.