Investors buy 1 in 4 homes in Raleigh, 1 in 5 in Durham

RALEIGH- Real estate investors are expanding their portfolios, outpacing first-time buyers and other potential buyers looking to acquire residential property in the Triangle and North Carolina.

The latest investor activity data, shared with WRAL TechWire at the request of national real estate brokerage firm Redfin, shows that across the country, investors accelerated the pace of acquisitions in the second half of 2021.

the redfin data shows that in Raleigh, Durham and Charlotte, investors have taken a strong position in each city’s real estate markets. And the latest data from Triangle Multiple Listing Service shows that home availability remains low, especially at list prices between $200,000 and $300,000.

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Charlotte

In Charlotte, as WRAL TechWire reported earlier this week, investors purchased nearly one in three residential properties in the fourth quarter of 2021, acquiring 3,786 properties, or 32.1% of all transactions. This is a slight increase from the third quarter in terms of percentages, as investors bought 31.2% of all residential properties in the third quarter, or 4,208 properties in total, according to red fin.

Charlotte recently ranked second in a national study of “real house prices” for the biggest year-over-year increase, and Raleigh ranked fourth.

Additionally, the area is seeing a dramatic shift in the inventory of available homes coming onto the open market, with more homes in the “most affordable” category coming onto the market as some investors look to capitalize on the growth. significant increase in equity caused by rising home values ​​in North Carolina, and others are looking to exchange investment properties using a 1031 exchange to defer capital gains taxes.

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Raleigh Real Estate Market

In the Triangle, recent data from the Triangle Multiple Listing Service shows that inventory continues to remain at historic lows, and the market pace and price in Wake County is among the fastest ever. A property that came on the market this week had dozens of people trying to view it, and video from the street where people waited to see the the property has gone viral.

The upshot, according to Matt Fowler, executive director of Triangle Multiple Listing Service, is that while demand for certain metrics is at an “all-time high”, affordability could be at a “historic low”.

WRAL TechWire obtained listing data, as of 3 p.m. ET Wednesday, on the competitiveness of the real estate market in Wake County.

According to listing data in the Triangle Multiple Listing Service database, across all residential property types, there are 2,582 single-detached homes awaiting sale, 918 townhouses (townhouses) awaiting sale, and 189 condominiums awaiting sale.

Compare that to what is available on the market: 305 detached houses, 63 terraced houses and 36 condominiums.

Here’s what’s coming soon, with a listing date sometime within the next 30 days: 153 singles, 29 attached and 2 condominiums.

Are you looking for a house at an affordable price, maybe between $200,000 and $300,000?

There are even fewer in Wake County. According to the database, there are a total of 11 properties listed as coming soon and a total of 42 properties actively listed on the market.

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Investor activity in Raleigh

Against this backdrop, real estate investors are still looking to acquire a property, and data shared with Redfin’s WRAL TechWire indicates that nearly one in four properties sold in Q4 2021 were sold to an investor.

Of all transactions in the quarter, 1,564 homes were sold to investors, according to Redfin’s dataset. This represents 24.5% market share and an increase in investor activity of nearly 78% year over year.

And the pace of acquisitions has also accelerated in the region, after the onset of the global coronavirus pandemic. Here are the numbers from the Redfin dataset:

  • Q2 2020: 528 homes bought by investors in Raleigh, 9.4% of all transactions
  • Q3 2020: 657 homes bought by investors in Raleigh, 9.7% of all transactions
  • Q4 2020: 879 homes bought by investors in Raleigh, 14.5% of all transactions
  • Q1 2021: 915 homes bought by investors in Raleigh, 18.3% of all transactions
  • Q2 2021: 1,283 homes purchased by investors in Raleigh, 17.2% of all transactions
  • Q3 2021: 1,515 homes purchased by investors in Raleigh, 21.6% of all transactions
  • Q4 2021: 1,564 homes bought by investors in Raleigh, 24.5% of all transactions

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Durham Property Market

In County Durham, there are 478 detached homes awaiting sale, 368 townhouses awaiting sale and 39 condominiums awaiting sale.

This is compared to what is actively listed and coming soon: 114 single-family homes, 38 townhouses and 28 condominiums are actively listed for sale, with 27 single-family homes, 13 townhouses and 1 condominium listed in the database as coming soon .

And in that price range of $200,000 to $300,000?

Like Wake County, there are fewer homes for sale between $200,000 and $300,000 in County Durham. According to the database, there are a total of 11 properties listed as coming soon and a total of 42 properties actively listed on the market.

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Investing activity in Durham

Investors are also playing an increasing role in Durham’s property market, as data from Redfin shows.

In Durham, 20.9% of all residential transactions in the fourth quarter of 2021 were purchases by investors, and their activity increased by 63% year-on-year in the region.

As of the second quarter of 2020, here’s how investors are playing a role in the Durham property market, according to Redfin’s dataset:

  • Q2 2020: 255 homes bought by investors in Durham, 11.3% of all transactions
  • Q3 2020: 282 homes bought by investors in Durham, 10.9% of all transactions
  • Q4 2020: 305 homes bought by investors in Durham, 13.1% of all transactions
  • Q1 2021: 311 homes bought by investors in Durham, 16.0% of all transactions
  • Q2 2021: 432 homes bought by investors in Durham, 14.4% of all transactions
  • Q3 2021: 502 homes bought by investors in Durham, 17.9% of all transactions
  • Q4 2021: 497 homes bought by investors in Durham, 20.9% of all transactions

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