The July 2023 Institute for Luxury Home Marketing monthly trend report is out now! The following is per the Institute for Luxury Home Marketing July 2023 Market Report:
This month we take stock of the luxury real estate market at the six-month mark and end of the second quarter for 2023. The most significant trend, and one that seems contrary despite the continuous reports of lower sale volumes compared to 2022, is that, for the most part, the North American luxury real estate remains a seller’s market.
June’s statistics show that out of the 150 single-family home markets researched by The Institute, 110 are seller markets, 20 are balanced (neither favorable to sellers nor buyers), and only 20 are favorable to buyers. It is important to note that 13 of the buyer markets are either winter resorts or destinations, i.e., their real estate sales are typically not as strong during the summer months. The attached market shows an even stronger bias towards sellers; out of the 103 reviewed, 84 are seller markets, 8 are balanced, and 11 are buyer markets.
While the number of sales in June 2023 compared to June 2022 fell approximately 11.5% for single-family homes and 14.0% for attached properties, sales have increased by 170% and 119% since January 2023 and by 8% and 1% compared to May 2023 respectively. Interestingly, in 2022 we saw the number of sales in June decline compared to May.
Inventory levels continued to climb, albeit slowly; single-family homes increased by 2.22% compared to June 2022, and attached properties rose by 8.56%, which has helped increase the opportunity for sales. However, the continued lack of new inventory each month, falling 19.18% compared to last June for single-family homes and 13.09% for attached properties, is probably the major contributor to luxury markets remaining favorable to sellers.
Until the volume of properties available for sale increases substantially, back to traditional norms recorded pre-Covid, it is unlikely that the luxury market will transition into a true buyer’s market anytime soon.
Looking at demand, sales, and prices during the first half of 2023, the North American market has continued to show a resilience that many would not have predicted at the start of the year. Looking to the immediate future, we can now say, with some confidence, that we are entering a period of more stability and sustainability.
A Global Perspective
A great deal of wealth was created globally over the last three years. Despite the downturn of the global equity markets in early 2022, according to Wealth-X, an Altrata Company, there has been a return to the steady increase of wealth creation since last June.
Although the cost of borrowing has increased globally, one long-term effect of the pandemic is that it has refocused the affluent’s desire to own property, the significant increase of cash sales by the affluent reaffirms their desire to buy luxury real estate. The consistency of demand also shows a resilience that despite interest rate increases for the affluent who chose to borrow money, they recognize it is a temporary situation that can be actively managed.
A combination of the lockdown, a growing appetite to travel or relocate on a semi-permanent basis is seeing an uptick in the affluent obtaining a second passport or citizenship in 20231, a figure that rises to 16% amongst Asian ultra-high-net-worth individuals.
This is a complex landscape to navigate, as changes can be rapid and very dependent on whether a country has fulfilled its goals. For instance, while Canada has a large incentive to drive new immigrants to its shores, on the other hand, they have introduced a foreign buyer ban for two years (starting January 2023) in the major metropolitan areas. Golden Visa programs were highly attractive for potential buyers in Portugal and Ireland, but recently they were terminated.
However, against all the economic and stock market uncertainty, the affluent are often the first to recognize the opportunity this presents and look to diversify, whether to hedge against inflation or simply spread the risk, so expectations are that the affluent will expand their portfolios across multiple countries in the future.
The Long View
The affluent see real estate as a safe long-term asset, as the equity and crypto markets have become unsteady investments over the last year. Interestingly, the emphasis on purchases has changed in the North America considerably. Before the pandemic, one of the most significant reasons for purchasing was the return on investment; today, the emphasis has moved towards an improved lifestyle and security as being equally important.
CLICK HERE to download the full report in its entirety. We are happy to share this information with you. At Carl Johnson Real Estate we use our experience and knowledge to lead our clients in the right direction. CLICK HERE to read more about Carl Johnson, REALTOR®, Broker, Owner, and Founder of Carl Johnson Real Estate. Carl is certified as an Institute for Luxury Home Marketing Specialist, CLHMS, which means he offers superior knowledge and experience in the luxury market. His CLHMS membership also provides him with access to an elite network of contacts and resources that help drive the perfect buyer to your high-end listing or find you your dream home! Using the most up-to-date marketing information, Carl positions your listing ahead of the market curve. Call 919-880-0904 for a consultation or CLICK HERE.
Original Content by Carl Johnson
The future can be worrisome as the unknown is often scary. This especially holds true when it comes to retirement, savings, and the investing of your own money. As stock markets are only projections and affected, both good and bad, by many outside factors, there is one true investment that has lasted the test of time. . . Real Estate. Investment in land is a one of a kind opportunity to own a piece of something that there literally cannot be more made of. With the right research, knowledge, and opportunity, real estate property can be the best long-term investment for you.
Image Credit: Keeping Current Matters
Real Estate as an Investment
For most it is hard to part with your weekly or monthly paycheck to put into savings, especially when it is not a direct draw from your pay. To simply pull money out of your checking to put into savings is hard to do for many in this economy, as well as too easy to put off or to have a ‘do it next monthly’ mentality. A main factor to the benefits of real estate as an investment is that each payment you make towards your mortgage is actually a payment into your savings. As stated by Dr. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) “. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter” (Keeping Current Matters).
Whether interest rates are 8% or 2%, the principle you are paying will always go back into your ‘savings’ in the form of ownership on your property, something that you will never get back as a renter. Your investment grows as the home appreciates over time in addition to you paying off your mortgage.
You also gain leverage with a real estate investment overtime which allows you to pull money from the property which you can in turn reinvestment in more real estate to make your gains even more. MoneyCheck (Why Real Estate Is the Best Long-Term Investment: Complete Guide (moneycheck.com)) gives a great example of how leverage works: “Paying down your mortgage gives you equity in your home. Banks and other lenders will allow you to borrow money against the equity in your home. So, for example; if you paid $200,000 for your home, and pay off $50,000 over 5-years on your mortgage, you now have $50,000 of equity in your property. If the property market increases over this same 5-year period and your home is now worth $250,000, then you have $100,000 of equity in your home. Banks will let you borrow money against this equity.” You can pull this $100,000 to put towards a down payment on another real estate property, reinvest your money, and start a whole other unit of savings.
Photo Credit: Keeping Current Matters
Long Term Investment
The 2021 Q1 findings of the National Council of Real Estate Investment Fiduciaries (NCREIF) show the average return percentages over 25 years of the following (webinar-slides-1q-2021-v2.pdf (ncreif.org):
Residential Real Estate: 10.3%
S&P 500: 9.6%
You can see that the percentage of average return for real estate outperforms that of the S&P 500 (a popular stock market index). And if you are someone who wants to be involved with your investment, there are ways to make your growth even larger. From renting out your real estate property, updating and renovating a property, or even refinancing to a lower rate over time are all ways to get more value out of your investment than that 10% rate.
Options for all Levels
When it comes to real estate as a long term investment there are options for you to get involved at a variety of levels. Residential real estate can be in the form of simply buying your own home. It can also include buying a property and using it as a residential rental property that you rent out to others. The good news is that residential real estate as a long-term investment can be a simple 1-bedroom apartment to a large home with property, whichever is realistic to you. As long as you are taking on the ownership of the property, you are putting that money back into your savings.
Do Your Research
Whether you are buying a residential rental property to invest in or looking at your first home, it is important to know what you value in a home as well as what makes the home valuable. Location is a key factor to consider when looking to purchase a home as an investment. From established neighborhoods to acres of property or even to an up and coming part of the city, these are all things to consider that will help your property appreciate its value over time.
Some areas are better than others in terms of residential rental properties to own. Areas around the Triangle that are near the universities can be good spots as well as anywhere on the Crystal Coast. We work with clients at the Crystal Coast, from Swansboro to Beaufort with selling their rental properties and buying new ones, to clients looking to buy a beach home that doubles as an investment.
You also want to know whether the property you are buying needs work, and is this a renovation where you will be able to get your value back or more. Be cautious not to out price yourself with what you have to put into the property. To heighten investment return, factors such as school districts, location to public transportation and business parks, past rental history and repairs, may be points you want to check that impact value.
Downtown Beaufort Waterfront - Photo Credit: Crystal Coast Tourism Authority
Let us Help You
Since investing in real estate is a major step whether it is your first home or your first investment property it is important to have a real estate agent on your team that is knowledgeable, trustworthy, and understands the area and industry. At Carl Johnson Real Estate we value what you value and want to help you succeed. CLICK HERE to contact us today and we can help you invest in your future.
The process of buying a home is a momentous step in anyone's financial journey. It represents a considerable financial undertaking, but one that comes with inherent benefits. Amidst the ebb and flow of market fluctuations, a home acts as a steadfast shield against inflation, consistently proving its value appreciation over time. Moreover, the accumulation of equity in your home reinforces your financial stability.
The decision to purchase a home carries profound significance in shaping your financial path. By embracing the journey of homeownership, you can build a solid foundation for your future and enjoy the enduring advantages it brings.
Whether you’re a first-time home buyer looking in the greater Triangle area, Durham-Chapel Hill or an experienced buyer looking for a Crystal Coast property, at Carl Johnson Real Estate, we walk you through all the details of each and every purchase and always protect your best interests. Our goal is to create an agent-buyer team that has a full understanding of the processes involved in buying a property and what is needed to get the buyer into their dream home to improve their quality of life or financial portfolio. Give us a call at Carl Johnson Real Estate to learn more about how we will help you achieve your goals. Call us TODAY 919-880-0904 or CLICK HERE.
Here is something really important: estate planning. I'll explain how you can pass on your home to someone you care about and how you can create a document called a last will and testament or a living trust to make sure everything goes smoothly. If you need a referral to a great financial advisor please let me know. Happy to help.
Taking the time to understand estate planning can bring you peace of mind knowing that your loved ones will be taken care of and your wishes will be honored. By exploring ways to pass on your home and creating essential legal documents like a last will and testament or a living trust, you can ensure a smoother transition of your assets. Remember, it's never too early to start planning for the future.
Call Carl Johnson Real Estate at 919-880-0904 to initiate a conversation about how we can help you with all your real estate-related needs. Or CLICK HERE to visit our Resources pages.
NEW at the bottom of this blog page, be sure to see the data about two counties at The Crystal Coast, Swansboro to Beaufort.
Across the entire Triangle Region, there was a 25.7% decrease in listings in June. The number of closed sales also decreased between 2022 and 2023, falling from 4,341 to 3,721 or by 14.3%. The median sales price was reported as $410,000, while units stay on the market for an average of 19 days. This is making it more challenging for buyers. Sellers are getting the benefit of multiple offers, but we are seeing pricing decrease slightly across the Triangle of NC but in other parts of the Triangle we are seeing an increase in pricing.
In Chatham County, there was a 28.2% decrease in new listings in June. The number of closed sales decreased between 2022 and 2023, falling from 135 to 125 or by 7.4%. The median sales price increased by 9.2%, which meant in June, Chatham County's median sales price was above the median sales price for all MLS listings.
In Durham County, the average June sales price increased from $464,775 to $496,588 or by 6.8%. New listings and closed sales both decreased, by 36.7% and 24.5% respectively, but the June median sales price in Durham County was on par with the median sales price across all the MLS listings.
The number of closed sales in Orange County showed no change compared to June 2022. The number of new listings, however, decreased by 20.3%, from 217 new listings year to date last year to 173 new listings this year. Additionally, the median sales price increased by 3.2%, from $494,000 to $510,000. In June, the Orange County median sales price was on par with the median sales price for all MLS listings.
The number of listings in Person County decreased by 15%, from 60 new listings last June to 51 new listings this June. There was a 17.5% increase in closed sales. There was no significant change to the median sales. In June, the Person County median sales price was higher than the median sales price for all MLS listings.
In Wake County, there was a decrease of 31.1% in the number of new listings compared to June of last year. The number of closed sales also decreased, by 19.7% percent. The median sales prices increased by 1.5% year to date, rising to $500,000, which is higher than the median sales price for all MLS listings.
In Carteret County, there were 186 new listings, comprising residential and multi-family properties. There were 154 sold properties in June. While the average list price was $686,081, the average sales price was $529,065, the average list price shows to be increasing in July, which is good news for sellers.
In Onslow County, there were 1094 active and 506 new listings in June, comprising residential and multi-family properties. There were 537 sold properties in June. While the average list price was $686,081, it shows to be increasing to an average of $732,405 thus far in July.
An Interview with Duke University Softball Coach on Durham and the University
Original Content by Carl Johnson
I interviewed Nicole Schaffer, local Durham resident and assistant coach to the Duke University Blue Devils softball program, to put together an article to connect how the University and city of Durham grow together. This is just one of the many ways Durham is more than just a place to live, but a place to learn, grow, and be a part of.
Duke University has had a presence in Durham North Carolina since the move of Trinity College (it’s former name) to the city in 1892 (Duke University: A Brief Narrative History | Duke University Libraries). As multiple renovations and campus additions took place year after year to accommodate the school's growth, the population and popularity of Durham grew and modernized with it. The success of Duke and Durham are interchangeable, as the area as a whole attracts people from all over the World for both education, work, and play.
Photo Caption: Duke University West Campus | Photo Credit: Duke Photography
A major part of Duke’s success, as well as a much supported way of entertainment for the city, is Duke Athletics. With 27 varsity sports and 17 national championships, Duke Athletics is one of the top in the country (Duke Athletics Quick Facts - Duke University (goduke.com). Duke blue and white reign all over Durham and the surrounding area and have loyal fans around the world.
For this article on Duke University and the City of Durham, I interviewed Nicole Schaffer from Duke’s successful D1 softball program. Nicole has been a Blue Devil’s assistant coach since 2020 after a successful collegiate softball career herself. For two consecutive years Duke softball has made it into the Super Regionals of the NCAA tournament. Duke even hosted the 2023 Super Regional for the first time ever in Durham. Things are looking great for the Blue Devils in 2024 as they return to their season with a strong roaster and coaching staff behind them. See my Q&A with Nicole below for an interesting POV on Duke and Durham and a peek at what draws people to Durham.
Photo Caption: Nicole Schaffer - pictured third blue shirt in from the left (sunglasses!)
Photo Credit: goduke.com
What industry do you currency work in and what is your role at Duke?
My full-time job is within Medical Devices as a manager of Regulatory Affairs where I utilize both of my degrees in Biomedical Engineering and Engineering management. I work for Medline Industries within the respiratory and anesthesia divisions. With Duke softball, I work primarily with the pitchers, as well with the technology, statistics and metrics within the team.
As a new resident, what drew you to the Durham area?
When we moved to Durham in 2019, it was originally a job that brought us to the area and we quickly fell in love with all the Triangle has to offer. We are close to two major cities of Durham and Raleigh and just a quick drive to the coastal beaches or the mountains of western Carolina. The weather is great year-round, the activities are endless, and the area is only continuing to grow! It’s been the perfect location for us as a very active family!
How do you see the city and the university benefiting each other?
Duke is actively engaged with its neighbors throughout the city of Durham to build and maintain a strong community. There are many efforts, including the Duke-Durham Neighborhood Partnership (https://community.duke.edu/program/duke-durham-neighborhood-partnership/), where Duke is working with local communities to improve the quality of life and connect students with the community. Duke also supports opportunities for students and staff to perform community service within Durham and the surrounding areas.
Do you use Duke's location in Durham as a recruiting tool?
I think the Duke education, amazing campus, history of success and the athletics sell themselves [from an athletic standpoint]. The city of Durham and all that it has to offer is certainly nice to market during the recruiting process [from an overall draw to the area].
Do the people of Durham give strong support to Duke sports?
The people of the Triangle are very loyal to ‘their’ team whether it’s NC State, UNC, Duke or any of the other local collegiate teams, and the folks of Durham certainly show their support and loyalty to Duke. There’s very few occasions where you walk into a store and you do not see folks not sporting their favorite teams’ hat or shirt. Durham shows high support for Duke and all of their athletics.
What is your favorite thing to do in Durham?
Experience all of the coffee shops and breweries that Durham has to offer! We have been here for four years and we’re still constantly finding new hidden gems in the area.
As the city of Durham continues to become a tech industry leader and with a university such as Duke, feeding the education and experience employee need, the future of both city and school only will continue to grow and succeed. The growth is evident as new developments are constantly being built all over the city, both commercial and residential.
CLICK HERE if you would like to learn more about the city of Durham and see how we at Carl Johnson Real Estate can help you exceed your real estate goals in the Triangle area!
Wake Forest, NC, may soon see a new mixed-use development that could change the local landscape. According to a report released by the Triangle Business Journal via their online platform on June 13, 2023, a Raleigh developer is proposing a new mixed-use development near Wake Forest Crossing shopping center. The project, which is being developed by Capitol Commercial LLC, would include 307 multifamily units, 19,300 square feet of retail space, and a 20,000-square-foot medical office building.
The development would be located on an 18.68-acre parcel on Stadium Drive, which is adjacent to Wake Forest Crossing. The parcel is zoned rural holding district, which allows one unit per acre. Capitol Commercial is proposing to rezone the property to neighborhood mixed-use, which would permit construction of up to six stories.
The development would include six buildings: two solely for residential, one for residential and a clubhouse, two residential with retail, and one medical office building. The site plans also show a swimming pool as part of the project.
The town of Wake Forest is currently reviewing the proposal, and it is not yet clear when a decision will be made. However, the project has the potential to address two of the town's needs: more housing and more commercial offerings.
Recent developments in the area, such as the imminent opening of Torchy's Tacos south of Highway 98 and the arrival of numerous retailers at the Wheat Field Shopping Center, have already contributed to the town's commercial growth. The proposed mixed-use development would provide much needed additional housing options for residents of Wake Forest.
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On June 14, 2023 Triangle Business Journal reported that exciting developments are underway in West Cary near the American Tobacco Trail. Epcon Communities of Ohio is seeking to rezone 73 acres north of Green Level West Road to create an age-restricted community known as Courtyards at White Oak. This community is set to feature a mix of 26 townhomes and 137 single-family homes, catering specifically to individuals aged 55 and above.
Details of the Proposed Community:
While specific details about the community are yet to be disclosed by Epcon Communities, the proposed Courtyards at White Oak is expected to offer a range of amenities, including neighborhood recreation facilities and a multi-use path along New Hope Road. These features will enhance the overall living experience and provide convenient access to recreational opportunities for residents.
As West Cary experiences significant residential and commercial development in response to limited available land, Courtyards at White Oak emerges as a standout community designed to offer a comfortable and enjoyable lifestyle for senior residents. This development aligns with the larger trend of westward expansion in Cary, and it comes as no surprise considering the growing recognition of the Triangle region as a desirable retirement destination. The Triangle's inclusion in the U.S. News & World Report's annual Best Places to Retire in the U.S. rankings in late 2022 first pointed to its appeal to retirees.
Don't miss out on the opportunity to work with a knowledgeable and experienced REALTOR who knows your local market inside and out. Contact Carl Johnson Real Estate at 919-880-0904 now to learn more about how he will help you achieve your real estate goals, whether they be a first home or a retirement home.
CLICK HERE to learn more about the town of Cary.
We've got a totally silly task for you today. We've gathered five quirky photos taken in the ZimZoom Photobooth at last week’s Best of Durham party. Durham Magazine hosted this party for all its winners, and we need your help to decide which one deserves the coveted title of "The Ultimate Cover Photo!"
TO VOTE SCROLL TO THE BOTTOM
Thank you, Kevin Brown, Creative Director, Triangle Media Partners, for participating in our fun!
Don't forget we also list properties and work with investment buyers at The Crystal Coast, from Swansboro to Beaufort. Spread the word among your friends and family, and we would be honored to receive your referrals.
While we continue to assist clients in the Triangle area, summer presents a fantastic opportunity to list or buy a property. Let's make your real estate dreams a reality!
Reach out to us today at 919-880-0904 and discover how we can turn your real estate dreams into a success story. CLICK HERE here to read testimonials from other agents and see what they have to say about us.