Johnston County state of the housing market update

Submitted by HOMETOWNE REALTY

Spring has sprung in the 2022 Johnston County real estate market!

We are still experiencing very low inventory levels and high buyer demand in our local market. Interest rates are volatile and have increased over the first quarter.

Appreciation rates are increasing moderately as well. This has impacted a segment of our market, especially for first-time home buyers and their ability to purchase. Given the state of rentals and the increased rent rates, in most cases, it’s still a better option to purchase a home, if your credit ratios allow.

We are showing less than a five-day period for most homes listed to go under contract in this market. Inventory is lower

this year than the prior two years and demand is still driving the market uptick.

Many have asked about foreclosures and if there will be any impact to our market. That’s a good question, and the market will normalize, as will foreclosures over time. With the high equity value in most homes under duress, we don’t see much of an issue with foreclosures or if there will be any possible opportunities to buy one over the next several months. Most homeowners under forbearance still have lots of equity in their home and likely will sell the home before it goes into foreclosure.

The foreclosure process typically takes several months before a home will actually go into foreclosure and on the market. We are seeing out of state buyers coming from several metro areas in the West, North

and even Florida. These buyers still view our home prices as a good buy compared to the much higher prices in those states from where they are relocating.

Our market values are still affordable to many buyers and they see opportunity to have more appreciation moving forward. Large institutional buyers are also fired up about our market. They are purchasing multiple blocks of housing for their rental portfolios, which competes with most typical buyers and causes inventory shortages locally.

Our market is vibrant and in high demand. New road construction and job opportunities continue even in this inflationary period. This area provides a fairly safe opportunity if and when the overall U.S. market slows some. The market actually needs some breathing room.