Cary Real Estate Trends + Forecast for 2023
Cary Real Estate Trends + Forecast for 2023
Cary real estate is some of the most popular in the Triangle area.
As the market is beginning to shift, it's essential to research the area you live in or plan to move to. Updated news and information on the market, inflation, mortgage rates, and more become available daily.
With its proximity to Research Triangle Park and new companies moving here daily, there's no doubt that the real estate market in Cary is continuing to change. People from all over the country are looking to move to Cary, NC, or the Triangle region, which significantly impacts the available real estate in the area. Looking at recent data from 2022, we will discuss important information regarding the market in Wake County, explicitly focusing on Cary, North Carolina.
Cary Real Estate Trends
The Cary real estate market is consistently on the rise. Home to over $170,000 people, Cary is a flourishing community located in the heart of the Triangle and is among the top best places to live. Recently, Cary, North Carolina, was named the sixth best place to buy a home in the United States.
Although Cary, NC, is a fantastic place to live and raise a family regarding the atmosphere, recreation, restaurants, shops, etc., the housing market can be challenging for consumers. Cary's housing market can be competitive, ranking 67 out of 100/.
According to Freddie Mac, nearly 60% of renters saw their rent payment increase in the last year, and more than half reported a rise greater than 10%.
It is important to note that while the market is shifting, so are the homes. The lot size of homes sold has continued to decrease while the size of the homes increases.
- Homes and properties actively listed for sale account for 0.45% of residential properties in Cary, NC.
- 60% of renters and 24% of homeowners spend more than 30% of their monthly income on housing.
In this article, we are going to cover the real estate trends in Cary, including:
- Homes in Cary stay on the market for an average of 40 days
- Houses in Cary are selling for the same price as they were listed
- Cary is ranked the sixth-best place to buy a home in the United States
- Millennials continue to move to the area
- The median home price is $569,500
The Triangle seems to be the last to be hit by market changes, but that's not to be confused with thinking we don't experience them. Multiple factors contribute to why we see a shift in the market, including inventory, interest rates, the economy, and more. So let's talk about what's happening.
If you've been in the market to buy a home, you can see that home prices have risen drastically. The year-over-year price appreciation from August 2021 to August 2022 in Wake County is still showing double-digit increases. Furthermore, between February 2021 and February 2022, home prices in wake county were up 23.6%.
The Triangle has also seen an increase in mortgage rates. This proves detrimental to homebuyers as the monthly cost of ownership increases with the rates. With a change in mortgage rates, the long-term borrowing cost that's associated with financing a home also increases.
According to Freddie Mac, as of May 2022, the typical interest rate for a 30-year fixed mortgage loan is now 5.25%, which is still up 2.25 percentage points from a year ago, and up from 3.76% at the beginning of March.
Cary Real Estate Demand
Recent data shows increased demand for homes in Cary, North Carolina. There are numerous reasons why people choose to relocate to Cary, including the proximity to Research Triangle Park and the surrounding highly-ranked universities; Duke, UNC, and NC State.
Dr. Anne York, a professor of economics and program director at Meredith College in Raleigh, says that in the Raleigh-Cary area, we are experiencing a surge in demand that is outstripping any increase in our supply of housing, so while we are seeing a rise in home prices, which is great for sellers, it's proving to be difficult for buyers to find a home.
Cary, North Carolina, ranks as a hot spot destination for Millennials. According to SmartAsset's 2021 study, Cary ranked No. 7 in seeing an influx of young people ages 25 to 39 moving to the area. The current population is around 182,600 and is only predicted to increase. The current growth rate of Cary, NC, is 2.21% annually, and the population has increased by 4.52% since the 2020 US Census.
The Raleigh-Cary area is the fastest-growing city in North Carolina. Over the past ten years, the population grew by 25.6% compared to 11.2% for North Carolina.
One of the main reasons people are moving to Cary is to raise a family. Cary, NC, is consistently ranked as one of the best places to live, and the population is continually growing.
In 2021, Cary was ranked the 12th hottest housing market in the United States.
- Across the nation, 0.90% of homebuyers searched to move into Cary from outside metros.
- Fayetteville homebuyers searched to move into Cary more than any other metro, followed by New York and San Jose.
- 75% of Cary homebuyers searched to stay within the Cary metropolitan area.
- Greensboro was the most popular destination among Cary homebuyers, followed by Charlotte and Myrtle Beach.
Cary Real Estate Supply
Cary, NC, is a seller's market, meaning that more people are looking to buy than homes available. With Cary's booming job market and economy, people from all over are relocating daily to Cary. This causes the seller's market. More people are moving to the area and looking to buy than people are leaving the area and looking to sell. Typically, a seller's market means that the sellers can be a bit more strict on their pricing and will frequently sell for over the asking price.
Homes in Cary have sold for 5% more in August 2022 compared to July. The median sales price is $569,500, higher than the national median ($423,600). There's no question that Cary is seeing a spike in home prices, as the median price has increased by 20% compared to last year.
As Cary is a seller's market, we see a decline in homes available. In August, there were only 441 new listings, down 7% from last year. Cary has a homeownership rate of 67.4%, higher than the national average of 64.4%. While most people own their homes, 33% of households in Cary are renter-occupied.
- The number of closed sales in Cary in 2022 has dropped by 21.7% compared to last year.
- Just over 2,000 new private housing unit permits were discussed for Raleigh-Cary in April 2022
- Months of supply inventory is 1.4, up 250% from last year.
In the Triangle, 2,502 new listings hit the market in June 2022, with 1.1 months of inventory available. That's up 170 from May 2022 (2,332) with only 0.8 months of inventory available. While Cary, NC, is currently experiencing a seller's market, the number of new listings available could push the Triangle into a buyer's market as buyers have more options. However, in August 2022, the new listing count was only 1,752, and the pending listing count was 1,038.
The Raleigh-Cary region was ranked third among the 53 largest metropolitan areas, with 39.5 new housing units authorized for every 1,000 existing homes in 2021. It only continued to rise in 2022.
Cary Pricing Trends
Cary's real estate prices increase as the area grows and offers more opportunities. Although prices continue to rise and demand homes is increasing, it's still recommended that you buy a home in Cary versus holding onto one.
The current Cary market is also suitable for investments. For a 5-year investment, the profit is expected to be around +17.89% which means that investing $100,000 today may yield a profit of $117,890 by 2027.
If you're interested in buying a home in Cary, you need to start with a healthy budget.
The Preston Neighborhood is the most expensive in Cary, NC. In August 2022, the median listing price was 1.1 million, while the average sold price was 925K.
If you're looking to find something more affordable, Northwoods is a great neighborhood to move to. The median listing price is $450,000, and the average sold price is $460,000.
Homes in Cary typically sell for the same price they are listing and are on the market for an average of 40 days. "Hot homes" can sell for around 7% more than the listing price and spend an average of 9 days on the market.
Residents of Cary, NC, should expect to spend anywhere from $1,200 to $2,100 monthly on housing. Most homeowners and renters spend this amount of their rent or mortgage payments. The average national monthly mortgage is $1,621. Regarding housing, the cost of living in Cary is generally higher than the national average.
- The median sales price of homes in Wake County for 2022 Q1 was $475,000
- The average sales price of a home in Wake County for 2022 Q1 was $546,569
Let's look at the difference in price between August 2021 and August 2022
- The cost of 1-bedroom properties went down by 27.3%
- Two-bedroom properties went down by 2%
- Prices of three-bedroom properties went down by 11%
Cary Housing Market Predictions
After reading through the market trends in Cary, It's safe to say that we think the demand for real estate in Cary will only continue to rise. With demand rising, it's fair to assume that home values will also increase.
A limited supply of homes in the Cary market and increasing mortgage rates and prices can make buying a home challenging. However, buying a home sooner rather than later is still recommended. Although, the rate increases may cause the Triangle's housing market even more competitive.
It's also predicted that selling soon rather than later is beneficial. Fewer buyers will be able to or be willing to finance with the constant increase in mortgage rates.
Cary, North Carolina, continues to become home to top jobs and opportunities. Along with a booming job market, the proximity to highly-ranked universities makes it a hot spot for millennials. That said, the population will continue to grow and cause a spike in demand for real estate.
Fannie Mae has reduced their total home sales outlook from 5.18 million to 4.98 million units and predicts that a moderate recession will still occur in 2023.
Our Key Takeaways
- Home prices will continue to rise
- The population will continue to grow
Are home prices dropping in Cary, NC?
In August 2022, Cary home prices were up 19.3% compared to last year. Only 32.9% of homes had price drops, up from 11% in August of the previous year.
Is Cary a seller's market or a buyer's market?
Cary is currently a seller's market, meaning that more people are looking to buy than homes available.
Is North Carolina a hot real estate market?
North Carolina's exceptional growth has contributed to its reputation as a hot investor's market.
Find Your Next Home With Raleigh Realty
With these Cary Real estate trends in mind, you can now comfortably buy your next home. When looking at the market in a new area, your career, income, and everyday expenses are factors to consider. As home values are predicted to continue increasing, it's essential to get all pertinent information before deciding. Overall, Cary is a great place to live and raise a family. Whether purchasing your first home or looking to downsize or add more space, Raleigh Realty can help you find the perfect home.
Check out the available homes in Cary on Raleigh Realty's website!