After the financial crisis, that began in 2007, the overall United States housing market has found its footing. There are some housing markets that have not only rebounded but have exceeded home prices prior to the housing market “bubble”. One such area is the Raleigh, Durham, and Chapel Hill, North Carolina market. When looking at market statistics it is quite obvious now is a time in which home prices are higher than ever.
Durham, NC Homes had an average sales price of $225,375 in June 2015 which are 6.3% higher than June of 2014 and the highest levels in recent history. Chapel Hill, North Carolina and Raleigh, North Carolina are also seeing homes prices near record highs. A highly educated region that has inroads in medicine, law, education and government is sure to recover faster than other parts of the country.
The capital of North Carolina is Raleigh creating many government jobs. Major universities are also located in the three larger cities of the NC Triangle. North Carolina State University is in Raleigh, the University of North Carolina is in Chapel Hill and Duke University is in Durham. There are a number of other smaller universities in the area as well. With thousands of college professors and administrators in the area one would expect income levels to remain intact. These are not jobs that are going to disappear when the economy turns south.
The medical industry has a huge presence in the Triangle area. Duke and UNC Hospitals are some of the most well renowned in the country. Doctors, nurses and medical professionals have job security that allows them to purchase a home with little financial concerns.
When you combine a great job market, low NC mortgage rates and a strong stock market we have a recipe for a strong housing market. While most think the Triangle part of North Carolina is a hot housing market it is nothing compared to southern California. In fact, several publications have been released stating that a handful of different metropolitan areas in southern California are not only the hottest housing markets but the best places to buy in the United States.
Finding mortgage financing in California is much easier today than it was just a few years ago. Banks and lenders have loosened their lending standards and many California residents are now able to purchase a home. This was not the case in 2007, 2008 and 2009. During the crisis banks were not willing to allow any low credit score borrowers to take out a home loan.
It will be interesting to watch these two housing markets as we move forward. Both North Carolina and California are hot markets in July of 2015 but anything can happen in the future.