1 June 2022
The City is experiencing one of the highest increases in the country.
Last year, you had to earn at least $53,000 to afford the median home and now it’s almost $73,000.
The increase is creating opportunities for some people and hardship for others.
The jump is making it even more difficult for Daniel Hatch to move his family out of a rental.
“I can’t find anywhere to live,” he said. “Even if I made 45% more, it would still be a significant barrier to entry. I would not be able to afford still.”
The analysis notes that Raleigh’s incomes are not increasing at the same pace as soaring property values and rising mortgage rates.
The APR has passed 5% for the first time in a decade.
Some realtors say the market is softening slightly.
“I definitely think interest rates are impacting, specifically, first-time home buyers,” said Realtor Hilary Kennedy.
Kennedy said houses are now sitting for a few days when they used to sell in one, and they’re not seeing crazy high amounts in due diligence money.
“I think buyers that we’re talking (about are looking for a house) $450,000 or less, which is extremely hard to find already, but couple that with the higher interest rate, it’s really tightening their budget so it’s eliminating certain buyers altogether,” said Kennedy.
Hannah Smith is one of those people looking to take the plunge for the first time. She’s been searching for months but isn’t deterred.
“It’s been a little discouraging, but it’s life right?” said Smith.
Kennedy says the current market is creating opportunities for those who experienced ‘buyer fatigue’ a few months ago.
“It may be the perfect opportunity for you to get back out there and see what we can do,” she said.
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