RALEIGH – The median home sale price in Wake County in the month of June was $383,000, according to a new analysis of real estate data conducted by the Wake County Register of Deeds, and Triangle-wide, homes are selling for about 20% more now than a year ago.
But that doesn’t necessarily mean more homeowners plan to list their property for sale to take advantage of, potentially, higher sale prices.
That’s because, not only is the median home sale price increasing— from $328,750 in January, or an increase of 16.5% during that time—a significant number of homeowners are choosing to refinance, rather than list their property.
The analysis from the Register of Deeds office found that, in Wake County, real estate lending activity in June 2021 rose 7% compared to the prior month, but was down 7.1% compared to June 2020.
The following chart shows the continuing wide gap between deeds of trust and deeds. This gap quantifies increasing strength in the mortgage refinance market. Source: Wake County Register of Deeds Office.
Real estate lending activity has two primary components:
Lending that coincides with a transfer of ownership of real estate. This type of lending occurs in the typical residential home sale, which at the time of closing a seller’s loan is paid off and a home buyer takes out a new loan through an instrument known as a deed of trust, as ownership in the property is transferred by deed.
A new secured loan is taken against a property, without a change of ownership.This type of lending occurs without a transfer of ownership of a parcel or property. This is the situation in the typical mortgage refinancing or second mortgage transaction.
“The relative strength of the second type of lending activity can be quantified by comparing the ratio of deeds of trust to deeds in a period,” the analysis states. In other words, when comparing the total number of deeds to the total number of deeds of trust, there’s a quantitative way to understand lending activity. “Relatively more deeds of trust signify increasing refinance of mortgage loans,” the analysis states.
The chart provided by the Wake County Register of Deeds shows a significant increase in the second type of lending activity, that is, in the filing of deeds of trust without an ownership change.
Since a baseline period prior to the onset of the global coronavirus pandemic, there’s an increasing gap that quantifies increasing strength in the mortgage refinance market, the analysis of the data shows. “The gap between the two remains consistently wide,” the analysis concludes.
During the second half of 2020 and through the first half of 2021, refinancing increased for an easy-to-understand reason, said said Brad Benham, vice president and senior mortgage loan officer at Towne Mortgage of the Carolinas: rates dropped further, making a refinance more beneficial to more homeowners.
“Since values of homes have increased, some homeowners may have decided to do a cash-out refinance to consolidate debt or do home renovations,” said Benham. But with inventory so low across the Triangle, prospective buyers who would sell their current property originally may not have considered refinancing, as they may have planned on selling their current home, noted Benham. “However, with inventory levels making it harder for people to find their new home they may have decided to go ahead and refinance into a lower rate and stay in their current home a little bit longer.”
Good time to sell; maybe not a good time to buy?
This gap doesn’t mean there are less buyers interested in purchasing property. According to data released this week by ShowingTime, a technology company used to coordinate real estate showings, the Triangle is among the real estate markets where the most average numbers of showings are occurring in the first five days following a property becoming available on the market. According to their data, homes in Raleigh are still seeing as many as 30 showings in the first five days, indicating demand is still high, even as supply remains low. The Triangle also ranks in the top five real estate markets nationally for the percentage change in average days on market, another measure of demand, dropping nearly 60% year-over-year, and now sits at 19 days, according to a new report from RE/MAX.
There’s also a gap in the market when it comes to the purchase or sale of property, new research from Opendoor revealed. The analysis of survey data from Opendoor, which is an iBuyer active in Raleigh, Durham, and Charlotte, all among the top regions where iBuying is highest in the country, shows that while 85% of people believe it’s a good time to sell a house, only 36% believe it’s a good time to buy one.
“With Google, Apple and other tech firms’ recent announcements about adding Raleigh-Durham offices, buyer demand will only increase,” said Jon Enberg, Opendoor’s regional general manager. “Market supply is at an all-time low and new construction as well as resale supply is not keeping pace.”
Those jobs, as well as newly announced jobs in biotechnology and the life sciences, are announced with higher-than-median salaries, said Enberg, which is giving some buyers higher purchasing power. Meanwhile, out-of-state movers are relocating to the Triangle and can get more house for less money than their cities of departure.
That means that many of movers, responding to a competitive housing market in the Triangle, are making all-cash offers on property, which recent data from the National Association of Realtors shows is happening primarily for buyers intending to make the house their primary residence.
“All of these factors are making it tough for buyers to find another home, which is leading to many using their excess cash to invest in improving their current home,” said Enberg. To find that cash, some owners are deciding or have already decided to refinance their mortgages or take out secured lines of credit against their home, the data from the Wake County Register of Deeds suggests.
“This can lead to stronger returns on investment when they are ready to sell given the continued demand for housing,” said Enberg.
The options for homeowners who are looking to buy a new primary residence now may also include holding on to their current property and turning it into a rental property, said Benham. That’s because they may be able to refinance into a lower rate, he noted. That could result in an owner-turned-landlord paying less monthly in repayment of the new mortgage, and yield high rental rate income due to increasing rental rate inflation.
“Some homeowners to hold on to their property as an investment property rather than sell it when they want to move into a new home since the rate on the existing mortgage is very low,” said Benham. “The impact on inventory is more a situation that sellers fear not being able to find another home if they put their home on the market,” he noted.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
