Forbes rated it second in ‘Best Places for Business and Careers’, it’s number two only to Silicon Valley itself for tech jobs, and you’ve probably heard that Raleigh has been consistently voted one of the best places to live Nationwide. Why? With plenty of green space (of ever-growing importance to our newly health-obsessed generation); culturally diverse arts and music scenes to satiate the creativity of millennials; and lots of museums and great schools for young families, it’s no wonder it has fast become the hottest real estate market in North Carolina. However, there are several other contributing factors.
What is a ‘hot’ market?
Hot housing markets can comprise many things. In Raleigh, we see an area in which demand is growing, with availability of undeveloped land to expand. It has a growing population of high income households combined with comparatively low living costs. Add to this an abundance of employment opportunities in industry areas which will continue to attract migratory recent graduates for years to come. Throw in the mid-level execs who look to move their young families somewhere more green, and you’ve got a highly educated workforce. Raleigh has all the fuel, and the fire has been lit.
As part of the NC research triangle, the area has become a hotbed for tech, science and education. This report indicates that Raleigh’s opportunity for employment, high quality of life and community spirit is attracting 80 new residents a day. With the bonus of southern hospitality and without the San Francisco price tag, it’s easy to see why population growth has been exponential. Net migration at the last census was 4,170. In contrast with our national aging population, the median age of Raleigh is in the prime of working life at 32 years old. The population has been described as ‘young, friendly diverse and educated.’ This demographic shift and the high economic value of inbound residents means each household (averaging 2.4 people) now has an average income of $62,404.
Average house price is up to $215,730, but property inventory levels are down on four years ago, creating a quick turnaround on sales and indicating a further increase in prices, especially in metropolitan areas with close proximity to tech. This means those looking to buy in downtown Raleigh need to move fast and potentially cross a few items off the wish list! Sellers currently have dozens of offers per sale, meaning buyers have to work a little harder to get the home of their dreams.
If the supply of housing in the area wasn’t also growing, this could add up to a detrimental push of housing prices causing native North Carolina residents to become immobile and eventually lead to gentrification. Luckily, new construction continues to pick up for 2016, whilst higher valuations on resale properties are tempting more sellers to list homes.
Aside from homeowners, investors are a huge indicator of growing markets. As a ‘magnet’ for investors in the last decade, the region has benefited from excess capital. Notable instances include the sale of two North Hills hotels at over $100 million dollars. Prices like this are more often paid in much larger cities such as New York or Chicago, but with the gravitation of HQs from huge corporations like MetLife, comes great financial gain for the area.
[Essentially this all adds up to a smoking hot market; if you’re considering selling a property in Raleigh, now is the time. Demand is on your side! Whereas if you’re looking to move to Raleigh? You may have to up your game a little, but judging by the ratings coming in from all sources, it’ll be well worth it.
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