A new year means new trends, and after the interesting year of real estate that 2019 brought, 2020 has the potential to be similarly unpredictable. But luckily, that doesn’t seem to be the case in Raleigh’s housing market!
Lower Rent, Lower Downturn
Over the past year, rent all over the country has been steadily ticking up. In fact, the national average now stands at around $1,600, according to a report from Zillow. In Raleigh, average rent comes in at about $1,300 a month, which is $60 more than Charlotte but still significantly less than other areas of the country.
But while Charlotte may have lower rent, it doesn’t fare quite as well as Raleigh when it comes to a potential recession. In 2020, recession odds are a little higher than usual, and 3 out of 4 experts predict that one could hit by 2021. However, that doesn’t mean all bad news for the real estate market—especially in Raleigh.
According to a study from Redfin, Raleigh is the fifth least likely American metro area to deal with a downturn caused by a recession…while Charlotte is the eleventh most likely.
The Help of the Job Market
So why is it that Raleigh’s housing market has such vastly different odds from nearby Charlotte? Well, a lot of it has to do with our highly diversified job market, largely thanks to the growing tech sector and RTP. In the past year, Raleigh was ranked by Wall Street Journal as the sixth hottest job market in the country, with growing wages and an unemployment level below the national average.
Additionally, IT jobs, many of which can be relatively high-paying, went up by nearly 40% over the past year. In addition to tech, Raleigh also boasts high growth levels in STEM. And all of those jobs lead to higher incomes—according to the latest data, the national median income was $63,179 in 2018, while it was predicted to be around $74,000 in the Raleigh area.
The Importance of Preparedness
With relatively healthy housing and job markets in the Raleigh area, it’s more important than ever to be prepared before you start your home search. Doing so can give you a major leg up on the competition, which could mean the difference between snagging your dream home and having an offer fall short.
One of my biggest recommendations? Get pre-approved! Doing so will not only encourage more agents to work with you, it’ll also show sellers that you can put your money where your mouth is—which will be crucial in our competitive real estate market.
Enlist the Help of a Triangle Area Specialist
If you’re gearing up to buy or sell a home in the next year, you might be a little nervous about potential economic downturn—but here in the Raleigh area, we’re relatively sheltered. That means you don’t have to put off your real estate plans!
Need a little help with buying or selling? Just give my team a call! We’re happy to offer a wide variety of resources and years of experience, made to ensure that your real estate journey is a as stress-free and successful as possible.