In my market (the Triangle area of NC including Raleigh/Durham/Chapel Hill and surrounding towns) it is clearly a sellers market. The main reason for this is the severe lack of properties on the market.
In the Triangle market the reason we have a shortage of homes on the market is mainly the current economy. The people here that may want to sell and move up to a larger house and the ones that may be empty-nesters and want to down-size are all sitting tight, afraid to make a move due to this very sluggish economy. Basically they are paralyzed with fear that the economy could easily take another dive at any time and don’t want to take on any more debt. So all of the local movement (up and down) is not present like in a normal market.
The majority of listings on the market are from people relocating out of the area usually for work related reasons. Since the Triangle area is a hotbed of job opportunities, more people are actually relocating here than away from here. You can see how this “out” versus “in” discrepancy would easily account for the current shortage of homes on the market. With all of the job opportunities here we have more incoming than outgoing. Where are the incoming going to live?
Another problem contributing to the shortage of homes available is that at the end of 2007 when the housing market took a downturn, a lot of the builders in the area either went out of business or got out of the building industry. They are just now, 8 years later getting back into the market so their “new construction” inventory has not had time to add to the replenishment of home availability.
This is my take on why we have a seller’s market in the Triangle area of NC. Stay tuned for an upcoming blog entry about what sellers can expect when listing in a seller’s market.
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