Raleigh, Burlington, Durham-Chapel Hill Among Housing Index Leaders
North Carolina’s housing market is booming. That’s according to the latest rankings from The Wall Street Journal/Realtor.com Emerging Housing Markets Index published this week.
Three cities in the Old North State appeared in the Index’s top 22. Raleigh scored the highest as the No. 5 metro area. Burlington and Durham-Chapel Hill ranked No.19 and 22, respectively.
Other notable mentions include Wilmington (97); Rocky Mount (98); Greenville (133); Greensboro-High Point (135); Asheville (139); Fayetteville (147); Hickory-Lenoir-Morganton (162); Jacksonville (168); Winston-Salem (176), Myrtle Beach-Conway-North Myrtle Beach SC-NC (179); and Virginia Beach-Norfolk-Newport News VA-NC (206).
Billings, Montana clinched the top place.
WSJ/Realtor.com said the rankings reflect how the housing boom has ignited homebuying activity in smaller to midsize cities around the United States.
“The top 20 cities in the ranking have an average population size of just over 300,000,” the report said.
The Index ranks the 300 biggest metro areas in the U.S. In addition to housing-market indicators, it incorporates economic and lifestyle data, including unemployment rate, wages, commute time and small-business loans.
The report said home prices in the top 20 markets in the index have risen 13.7% on average in the past year, outpacing an 8% rise for all 300 areas.
The top 20 areas still had a lower median listing price than the market overall, said Danielle Hale, chief economist at Realtor.com.
To compare, Raleigh home prices were up 28.5% compared to last year in June 2021, selling for a median price of $380,000, according to Redfin.com.
During that same period, Durham home prices were up 23.2% compared to last year, selling for a median price of $355,000.
Chapel Hill home prices jumped 25.8% compared to last year, selling for a median price of $560,000.
Burlington home prices were up 20.6% compared to last year, for a median price of $240,000.
“With Google, Apple and other tech firms’ recent announcements about adding Raleigh-Durham offices, buyer demand will only increase,” said Opendoor’s regional manager Jon Enberg in a recent report.
“Market supply is at an all-time low and new construction as well as resale supply is not keeping pace. New jobs are significantly above the median salary for Raleigh-Durham, and buyers are moving from more expensive markets and making cash offers.
“All of these factors are making it tough for buyers to find another home, which is leading to many using their excess cash to invest in improving their current home. This can lead to stronger returns on investment when they are ready to sell given the continued demand for housing.”