The listing inventory in the Triangle Multiple Listing Service (TMLS) has increased almost 500% in the last six months.
Data from TMLS in the sixteen counties surrounding Raleigh and Durham, reveals that inventory has increased 495% from March 15, 2022 through October 17, 2022.
On March 15, 2022, there were 1,280 active listings in the 16 county area. * As of October 17, 2022, that number had increased to 6,437 active listings in the same 16 county area.
News media outlets often report on national real estate numbers and statistics; however, all real estate is local. For example, Yahoo Finance reported yesterday (October 19, 2022) that “sales and listings nationally slumped the most on record with the exception of the early months of the pandemic.”
That is not the case in the Triangle market where the number of monthly sales are keeping pace with 2019 numbers. Most would agree that the 2019 real estate market in Raleigh, Durham and surrounding areas was a good market at that time.
Because the market shifted in mid-2020 with homes selling with multiple offers before every going live in MLS, and often sight unseen, consumers became accustomed to an unrealistic market with inventory at record lows while demand was at record highs.
There is no such thing as a “national real estate market” when it comes to selling a home. It is all about the hyperlocal area around the subject property. Real estate licensees will use closed comparable properties to establish a baseline for the subject property’s value. That closed value is often in the past and properties can be used for as much as six months to show recent value.
However, those agents will also need to take into consideration pending listings that indicate upcoming value and active listings that are indicative of future value. Along with that, rising mortgage rates, relocating companies, other construction in the area and other factors can also affect home values.
Local knowledge to the specific area of the subject property is becoming more important than ever. The North Carolina Real Estate Commission discussed competency of an are in the required continuing education course for real estate licensees last year. The course encouraged licensees to be aware of all material facts around a subject property that must be disclosed. That focused has continued with the 2022-2023 courses for licensees with almost two hours of discussion on material facts in this year’s CE class.
If you live in Clayton and interview an agent from Durham to list your house, it will be important for you to make sure that that licensee is aware of local material facts that must be disclosed.
The same goes for a resident of Wake Forest considering selling a home. This article from July, references 15 material facts that a real estate agent should be aware of when selling a home in the Town of Wake Forest. If the agent the seller is interviewing is not aware of these, maybe the search for a Realtor® to represent the seller should continue.
Most sellers start at Zillow with a “Zestimate.” It has been proven that the Zestimate can be off by as much as 20% in many cases. Even Zillow’s own disclaimer recommends speaking to a Realtor® with local knowledge to determine the final price for a home.
To understand the real value of a home, consumers should interview a reputable agent that can demonstrate a mastery of local knowledge. That knowledge combined with an understanding of where the supply and demand are for the current market, will help the seller and agent come to agreement on an effective pricing strategy to help facilitate the sale of the home in the shortest amount of time.
* The sixteen counties included in this research include: Chatham, Durham, Franklin, Granville, Halifax, Harnett, Johnston, Lee, Nash, Orange, Person, Vance, Wake, Warren, Wayne and Wilson