Townhome and condo prices are falling in Raleigh
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Rebecca Zisser/Axios
A divergence is forming in the Raleigh housing market this spring between single-family homes and townhomes and condos.
Why it matters: While the price of single-family homes grew year-over-year in March, townhomes and condos got cheaper, Homes.com's latest report shows.
Between the lines: Townhome and condo construction has become more popular in recent years due to growing land costs as well as a desire by city officials to encourage more dense construction in the face of a housing shortage.
- Prices for townhomes and condos have dropped as the number of units for sale has increased. But sales have also decreased while that inventory went up.
- Townhome sales fell 19% year-over-year in March, while single-family homes and condos posted growth. The numbers could indicate that buyers in the Triangle still much prefer detached homes.
By the numbers: In March, the median price of a single-family home in Raleigh was $469,945, up 1% from a year ago, according to the report.
- Meanwhile, townhome prices fell 5.3% to $336,995.
- And condo prices dropped 9.5% to $310,000.
Zoom in: Inventory rose among all home types, but the supply of townhomes (27% increase in listings) and condos (53%) grew faster than single-family homes (25%).
- The growth in townhome inventory is backed up by data from Doorify MLS. It found that in April, townhome inventory was up year-over-year in Wake County by 88% and in Durham County by 127%.
What they're saying: Matt Fowler, CEO of Doorify MLS, said he believes there is still strong demand for townhomes and given their price point they add an important element of affordability for the region.
- But they take, on average, 10 days longer to sell than a single-family house, he said.