How the Triangle Compares to National Real Estate Statistics
We have a number of interesting real estate statistics to share with you this week, but how do they compare to the real estate market in the Triangle? What does Angie have to say regarding some of these nationwide numbers and data?
Let’s talk facts and figures when it comes to buying and selling a home. Do these national stats apply the same way here in the Triangle market?
Depending on the area, realtors are being considered essential and can continue to buy and sell homes. One statistic says 12 percent of buyers made a purchase last week without actually setting foot into the home. Whether that’s from coronavirus-related reasons or from people moving from out-of-state and unable to travel, a lot can be done online with virtual tours and work online. Angie shares a few ways this has changed and stayed the same for her team in recent weeks.
After you receive your stimulus check, have you considered what you will do with it? Let’s daydream for a minute and consider what kind of upgrades to your home you could make with that stimulus check if you were in a financially stable place. What’s the number one upgrade to make to your home?
A recent study put on by Freddie Mac said that the real estate market was short over 3 million homes. This could make for a competitive buying market, especially as more and more millennials purchase homes. What are the average prices of homes in the Triangle that are going quick?
Over 38 percent of homeowners are single, according to recent data. Between people getting married later in life and a rising divorce rate, there are more homeowners who are single. What kind of homebuyers has Angie seen in this market? Does it change the style of home people are more interested in?
In 2020, what were the top worries for homeowners (before we knew about coronavirus)? Are you worried about these things, such as home repairs, decrease in value, or not being able to sell your home? Is this list reflective of typical homeowners in the Triangle?
Hear more about all of these statistics and get the local context of this information by listening to the full episode or click on the timestamps below to learn more about a particular statistic.
1:31 - What are some relevant statistics when it comes to buying and selling a home?
2:03 - 12 percent of homebuyers in the last week made a purchase without seeing the home in person.
4:57 - 1 in 4 Americans plan to use their stimulus check on housing, rent, and utilities.
7:07 - A Freddie Mac study said the real estate market was short 3.3 million homes.
10:38 - The number of single homeowners is at a record high.
12:44 - Before coronavirus, what were the top worries for homeowners in 2020?
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Note: This is an automated transcription. Please forgive the robots as they tend to make some (a lot of) mistakes...
Speaker 1: (00:02)
It's time for the savvy real tour podcast. I'm Walter Storholt alongside Angie Cole, the owner and broker in charge of A Cole Realty serving you throughout the triangle, teaching you about the ins and outs when it comes to buying or selling a home. You can find the team online by going to AColerealty.com that's a C O L E realty.com or by calling (919) 578-3128 that's (919) 578-3128 and now it's time for one of the top realtors in the triangle, Angie Cole and the savvy real tour podcast. Things are still moving and shaking here in the triangle and in the greater Fayetteville. Angie, I know that you and your team, you know, you haven't really taken your foot off the pedal at all. There's, there's not been a lot of Netflix and chill for you guys, right? You've been stayed pretty busy.
Speaker 2: (00:52)
We have, you know, I think across the board, everyone has seen a slow down just a teeny bit, but not really. I mean our, our team is still actively selling homes. We've pretty much been closing or not closing, but putting under a contract, one home a day. Um, so both, whether it be on the buy side, the seller side, you know, things are rocking and rolling and you know, I don't think that that's going to change anytime soon. Um, if that all, just because there's such limited inventory and you know, everyone has reasons for why they need to buy or sell a home. And so there will always be buyers in the market. There will be always homes that need to be sold. Um, and so we're, we're keeping strong right now.
Speaker 1: (01:32)
Well, I've got some interesting stats and figures. I want to throw your direction, Angie, that I thought might lead to some interesting discussion. Some of these things are Corona virus related, some of them are not. So we're going to take a little break from some of the Corona virus talk on today's show and still focus on some basics of, you know, real estate and buying and selling homes and some of the things that we should know during any time. Corona virus or not. And also look at some longterm data as well. But I want to put some context to these numbers and figures, otherwise it's going to get really boring. Uh, but I think this will spark some fun talk. Um, according to one brokerage, 12% of offers in the past week were made without the buyer seeing the home in person. So video tours only 12%, and that's up from basically 0% prior to the pandemic. So as we've talked about the last couple of weeks here on the show, we thought that this would become a trend and the data is starting to trickle in that shows that being the case.
Speaker 2: (02:27)
Yeah. Um, you know, I think, well I know from market to market is different just depending on what the rules and regulations are behind, you know, whether or not real estate is deemed essential or not. And in our market, in the triangle and in the Fayetteville market, realtors are deemed essential. Um, so that means that we can show homes, people can go and look at homes, we can go on listing presentations. Um, but we do have one County that we cover Durham County, um, that is not allowing showings. Um, and so in that area, I actually was talking to one of my buying agents the other day and there was this home that popped up. Um, there was just a price reduction on it and they were about to make an offer on this home. Um, and there is actually an addendum that has been drawn up that can accompany an offer and pretty much you negotiate an offer but you give a very minimal, you know, amount of money to negotiate the offer.
Speaker 2: (03:21)
And then since you have an executed contract, then you can go see the home. And then once they step foot in the home, they love the home. Then a lot more money is at risk at that point or the due diligence money. So I mean there's ways around making it work. Um, but you know, we actually, before the pandemic, we would write an offer here in their sight unseen just because we have so many people relocating to our area. Maybe they can't make the quick trip. Um, you know, to look at home so they have to do it all virtually. We're also seeing where a lot of parents are buying homes for their kids who are going to be students at our local schools and if they're going to be there for at least four years is so smart to buy a property as an investment versus them renting. Um, and so a lot of times, again, we're doing those showings of virtually for them. So we definitely were not at 0% in any way. Um, you know, I, I would say maybe you know, three or 5%, but for us, that number really hasn't gone up just because, uh, for the most part we're not limited on our showings.
Speaker 1: (04:27)
That's interesting. So you're actually probably in disagreement with the fact that it was basically 0% prior to the pandemic, at least for your team, but also you haven't seen the jump that maybe others have seen and yeah, very market dependent. Yeah.
Speaker 2: (04:41)
Right, right. As far as you know, what type of, you know, for example, in North Carolina with our state at home order, you know, once again real estate is deemed essential so we can still show homes. Um, so business really is just the same unless a seller doesn't feel comfortable, but for the most part, yeah, we're still out there showing
Speaker 1: (04:57)
interesting a study done or a survey done shows that one in four Americans, so 25% are going to use that stimulus check on housing. So the checks are going to go to rent, mortgages, utilities, those kinds of things. And that makes sense. I mean, if people are, you know, we need food and shelter, right? I mean those are two of the basics. So it makes sense that they're going to go to those kinds of expenses. However, let's just pretend that folks listening to today's show are in good financial shape. They've got some flexibility with what to do with that stimulus money. Maybe they want to put it back in the economy and help. Since this is a real estate and kind of home show, if you will, if we didn't need the stimulus check to necessarily put food on the table tomorrow and we were thinking about doing some home upgrades, what would you do with that 2,400 to 3,400? Obviously to kind of, depending on the size of your family, uh, what would you do with that money right now? If you could do a home upgrade or something like that or, or, and what would make sense for just, I know it depends on the house, but like the average person, what if you were going to try and upgrade your home and maximize value, what would you tweak with those dollars?
Speaker 2: (06:02)
Putting granite, granite, granite countertops. Um, you know, the thing that people most time pay attention to or they want to make sure that it's already upgraded is the kitchen. So granite countertops, stainless steel appliances. So if your home doesn't already have those items, I would definitely use that money and upgrade there.
Speaker 1: (06:19)
Which that amount of dollars for the average size kitchen, that's probably depending on the level of granite you go with that. Certainly you might cover the whole cost of the project right there.
Speaker 2: (06:29)
Yeah, yeah, you definitely should be able to, um, for most size kitchens and you know, even when it comes to granite, you don't have to go and put in a level five granite, you know, level one is just as acceptable and beautiful as well. So, um, you know, put in a level one granite, um, which is, you know, definitely a lot more affordable, uh, versus when you go up in the grades. Um, but yeah, that amount of money definitely should cover it for the most part.
Speaker 1: (06:53)
There you go. Granted there's the number one go to upgrade. If you've don't have that in place in your home right now and you're looking for somewhere to spend that stimulus check the granite folks are loving us right now, Angie. Yes, most definitely. Uh, absolutely. So that's a good one. Very fun. Uh, Freddie Mac study, going through some stats and figures on today's show here on the savvy realtor, uh, Freddie Mac study says that real estate market is short by 3.3 million homes. This is in the entire country. Now. This was as of early March before most of the lockdowns and things like that when in place. But this is more of a longer term, bigger conversation. So even with the Corona virus, this isn't, that doesn't necessarily affect these numbers. Uh, the shortage has been rising by about 300,000 housing units per year. And even with the Corona virus, the longterm projection or prediction is that we'll continue to have a competitive buying market as millennials get more into their thirties and become prime home buyers. So you look at that longterm, Angie, it sounds like we're going to be in a competitive buying environment for a really long time. Sure, we'll have ups and downs, but on the whole, it sounds like the next several years will be very competitive.
Speaker 2: (08:00)
Yeah, I, I do not foresee anything change. And definitely in our market, um, I know once again, every market's a little bit different, but with such low inventory and so many buyers out there, especially like the millennials and our market's very well known for millennial millennials purchasing, uh, we just have so many job opportunities. You know, so many great schools around here
Speaker 1: (08:22)
have families getting into our thirties.
Speaker 2: (08:25)
You have a lot of younger families. Um, so you know, a lot of those, of course millennials then are purchasing homes, you know, a lot of first time home buyers in our area. So, um, I only foresee that there will continue to be a shortage of homes, especially in certain price points around here. You know, if you try to find a home in Raleigh under 300,000, it is flying off the market. Um, just because prices are continuing to increase. Um, the average price point right now I believe is around 15 to three 18, um, for the triangle market. So yeah, I mean I'm in agreement here that there are still going to continue to be a shortage of homes and that's not going to be lifted anytime soon.
Speaker 1: (09:07)
Well you mentioned a lot of first time home buyers in our market for those very reasons and I know you offer a great resource for a lot of first time home buyers to kind of get familiarized with the process.
Speaker 2: (09:16)
Yeah, most definitely. So if you are thinking about purchasing a home and you want to understand just the process from start to finish, um, you know, just kind of the ends and outs of purchasing a home and to make sure that you're always one step ahead of the process. We would love to share with you our home buying guide. And so our home buying guide goes through the whole process of buying a home. And so if you would like to receive a downloadable copy of the home buying guide, you can text the word contract to the phone number by five, five, eight, eight, eight. So once again, if you're thinking about buying a home and you want to get a copy of our home buying guide, just text the word contract to the phone number five five five eight eight eight
Speaker 1: (10:00)
very easy to get that guide into your hands. All it takes is a simple text and we'll send you back at LinkedIn, click and download that home buying guide. Very easy to access and to understand learning the important terminology and steps to the process of buying your home. Just text the word contract to the number five five five eight eight eight for Angie Kohl's, home buying guide. Great. For first time home buyers or if it's been a while since you've been through the process. Text the word contract to the number five five five eight eight eight. We're talking about stats and figures, how they relate to us here in the triangle and the greater Fayetteville area in surrounding communities. The number of single homeowners is at a record high. Angie. Over 38% of homeowners are single according to the most recent data and the reasons people getting married later in life. Uh, that's one reason. And then increased divorce rates among older generations as well. And so you've got a lot of folks who were single now influencing the housing market in many ways.
Speaker 2: (11:02)
Yeah, yeah. And I could agree with that a hundred percent. Um, you know, I am seeing that a lot more people are getting married. Like you mentioned later in life, you know, back in the day I felt like the norm was, you know, right. You know, right out of school, you're very low twenties, you know, it was expected to be married, you know, way back in the day it was in our teens. Right. Uh, but as you know, times have changed. I'm seeing a lot more people get married for the first time in their thirties, you know, that's not uncommon. And then unfortunately the divorce rate I know is higher as well. Um, so, you know, maybe someone was married at one point, they got divorced and other single again. So, um, I completely agree with that, that we are seeing a lot of single homeowners in our market
Speaker 1: (11:45)
influencing what builders are doing as well. Maybe a little increase in ranch style homes and more entry level homes, that kind of thing.
Speaker 2: (11:53)
Yeah. Um, you know, I wouldn't really, Hmm. I wouldn't really say that they are tweaking their floor plans based on, you know, the single homeowner. Um, just because I feel like a lot of people when they do buy a home, they're always thinking about their next steps. So for example, maybe I'm single right now, but in the near future, hopefully I plan to get married and build my family. Um, and I feel like a lot of people, they buy a home expecting to stay longer than what they do. So a lot of times they do buy home a little bit larger than what they need. And so in that case, I would say, you know, builders are, I mean, yeah, maybe they're doing a lot of entry level homes. You know, there's a multigenerational, there's ranch homes, you know, for those empty nesters. But, you know, I wouldn't say that they're really building one product are really geared towards the single homeowner per se.
Speaker 1: (12:43)
Okay. Interesting data. One last one to throw at you here, Angie. Uh, this was pre Corona virus, but it was a study revealed the top worries of 2020 for homeowners. Wonder what the study would say. Now, uh, number one on the list was worries about needing to make major home repairs. 32% of folks said that was their biggest worry was home repairs, a potential decrease in homes value was the, uh, other top concern for 17%. And then the other top responses were increasing mortgage payments, difficulty finding a new house and not being able to sell at all the current home. But interestingly 18%, which would have ranked as the number two response said they had no housing worries at all. Your reaction to those numbers, does that reflect what you see when you talk to homeowners and sellers and those kinds of things?
Speaker 2: (13:34)
No, I, I completely agree with, uh, make home repairs. And to me that kind of qualifies. Um, for example, I see whenever people are looking at homes, their biggest concerns are, well, what's the age of the roof? What's the age of the HVACs? Because those are items that are pretty costly, you know, so if one of those, like an HVAC breaks, that's not an inexpensive fix. And so I would say that is definitely a concern. You know, once they become a homeowner, well what if I have some major repair that has to take place, you know, do I have the means, do I have money saved up in order to take care of those? You know, I do, you know, of course, you know, we hear from time to time people that are a little bit concerned about, you know, the home value. Um, we are in such a strong market right now at homes are continuing to appreciate that of course people are just waiting around, well when is the bottom going to fall out, you know, going into a recession eventually.
Speaker 2: (14:26)
Um, and so there's very concerned about buying at the top of the market, which I, I do not foresee that there will be any type of recession like we had in the past, you know, in 2007, 2008 and then, you know, the last thing you talked about, like the other top responses were increase in mortgage payments. I don't tend to hear that. You know, I think a lot of us, um, are very conservative and we get a fixed interest rate. And so unless the taxes just go up significantly, really your mortgage payment shouldn't change all that much from year to year.
Speaker 1: (14:59)
Yeah, I agree with you. That one seemed a little bit, uh, a little bit interesting worrying about increasing mortgage payments. It's a pretty small jump usually that it goes through. So hopefully nobody's seeing large increases in their mortgage payments with taxes and those kinds of things. But other than the general bump ups that we get from time to time, but, but yeah, very interesting data for sure. And so if you have any questions about that, uh, wondering about buying or selling homes here in the area, you want to turn to an a great real estate team that knows how to navigate all these waters, knows how to take national data like we've talked about here, and put it into context of what's happening locally. Cause sometimes what you'll see in the news happening on a national level may not apply to the local community. And that's why it's so important to work with an agent who has their pulse on what's happening in this exact market.
Speaker 1: (15:45)
And that's Angie Cole and her team at école Realty. If you want to get in touch, you can call or text Angie at (919) 538-6477 again, call or text or reach Angie there at (919) 538-6477. You can also go online and find us there and start your home [email protected] that's a C O L E realty.com you've been listening to the savvy real tour podcast. I'm Walter store Holt alongside Angie Cole. She's the owner and broker in charge of Aiko Realty here in the triangle. And if you have questions for Angie, we invite you to go online to H Cole realty.com listen to past podcast episodes on the website, read the blog and all the great information, including the option to find a home right there on the website. That's a Cole realty.com and you can also call Angie with your questions. (919) 578-3128
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