Buying A House In Orange County? Better Have 401K. Literally.

Slowly but surely, our local economy is returning to where it was before the Great Recession of 2009. What does this mean for the local housing market?

It means you’re going to need a lot of money to buy a home – especially here in Orange County.

“This has been a really good year…we’re now reaching or surpassing historic highs,” said Mark Zimmerman of Chapel Hill’s RE/MAX Winning Edge while addressing the Chapel Hill-Carrboro Chamber of Commerce’s annual “Spaces and Places” briefing last week.

Much of the news he had to share was good – at least if you’re in the market to sell.

“All of our areas are sellers’ markets,” he said. In fact, in the last twelve months ending in July, more homes sold in Orange County than in any other twelve-month period in history – breaking a record set before the recession.

Data via SlideShare.net/CarolinaChamber.

That’s coupled with a lack of inventory: not only are there relatively few existing homes going on the market, Orange County isn’t building many new homes either – only 177 new units in the last 12 months. That’s about a quarter of what’s being built in Chatham and Durham.

And the consequence, Zimmerman says, is that we’re hitting another milestone as well – one that’s somewhat less exciting.

“Not a surprise: we have limited supply, we continue to have high demand, and…that means increasing prices,” he said last week. “The average price of a single-family detached home, over the last 12 months in Orange County, popped above 400,000 dollars.”

Data via SlideShare.net/CarolinaChamber.

The per-square-foot cost of housing is also higher in Orange County – in spite of the fact that Orange County’s housing stock is also significantly older. The average home on the market in Orange County is now more than 30 years old.)

Data via SlideShare.net/CarolinaChamber.

Zimmerman says there’s an obvious danger: if prices continue to rise like this, Orange County will continue down the road of becoming a place where only the affluent can live.

“We lost the ability to house our lower-income people, especially in Orange County, a long, long, long time ago,” he said last week. “If this trend continues, we’re going to start losing the ability to house middle-class people too.”

How do we avoid this? Zimmerman says it’s all about the market, and the market is all about supply and demand: if you want a lower cost of housing, you have to either reduce the demand or increase the supply.

Demand will likely remain high as long as Orange County remains a desirable place to live, and that’s not something anyone wants to change – so Zimmerman says the key to controlling the housing market is to build new units. And that’s something he says we’re not doing enough.

“When you add a lot of new inventory, you have a lot of competition…and it forces the product that isn’t new to price itself accordingly,” he said. “In Orange, since we haven’t been adding that competition, it allows the resale property to be able to grow in price unfettered – and that’s making everything less affordable.”

Data via SlideShare.net/CarolinaChamber.

Get more data from Zimmerman’s presentation at this link.

‹

On Air Today: Aaron Nelson and Pam Hemminger on the Real Estate Forum

Following the Chamber of Commerce's recent forum on the real estate landscape, President and CEO of the Chamber Aaron Nelson, as well as Chapel Hill Mayor Pam Hemminger, speak with 97.9 The Hill's Brighton McConnell about top takeaways.

Gap Is Narrowing, But OC Homes Are Costlier, Older

Housing affordability is still a major issue in Orange County.

Investors Snap Up Growing Share of US Homes as Traditional Buyers Struggle To Afford One

Real estate investors are snapping up a bigger share of U.S. homes on the market as rising prices and high borrowing costs freeze out others.

Housing Market Chills as Mortgage Rates, Prices Scare Buyers

Written by KEN SWEET, MICHAEL CASEY and ALEX VEIGA It’s the summer that cooled off the housing market. Rising mortgage rates have combined with already high home prices to discourage would-be buyers. Mortgage applications have declined sharply. Sales of previously occupied homes have fallen for five straight months, during what is generally the busiest time […]

On Air Today: Jim Parrott on Housing Policy and Gaps

Former housing advisor for the Obama administration Jim Parrott joins 97.9 The Hill's Brighton McConnell to discuss the current challenges of the housing market, potential policy solutions and the historical context for the racial equity gap when it comes to home-ownership. Sponsored by Habitat for Humanity of Orange County.

US Home Prices Surge 18.4% In October

Written by PAUL WISEMAN U.S. home prices surged again in October as the housing market continues to boom in the wake of last year’s coronavirus recession. The S&P CoreLogic Case-Shiller 20-city home price index, out Tuesday, climbed 18.4% in October from a year earlier. The gain marked a slight deceleration from a 19.1% year-over-year increase […]

Inter-City Visit: Lessons From Boulder

Local leaders return from this year's Inter-City Visit. What did Boulder, Colorado, have to teach?

Orange County Homes Are Pricier - But How Much Pricier? And Why?

Housing is expensive in Orange County - to the tune of nearly $350,000 per house.

Rental Prices Still On Rise In OC

Housing affordability is a major issue - not just for home buyers, but for renters too.

On the Porch: Rebecca Sommer-Petersen and Julianne Kluk - Chatham Salvation Army 

This Week: Rebecca Sommer-Petersen was born and raised in Winston-Salem and Chapel Hill. She spent her adult years in New York and Massachusetts, where she earned 2 master's degrees from Boston University School of Theology. Rebecca has worked in a variety of church and social service settings, including early childhood, youth development, camp and conference program design, and adult services. Rebecca returned to NC in 2021 and became the Director of The Salvation Army service center in Chatham County, fitting her skills in Social Services and Ministry. She lives in Chatham County with her husband and her dog Ivy.  Julianne Kluk is a South Carolina native and proud University of South Carolina alumna who is passionate about helping others overcome difficult moments. She has worked with The Salvation Army for the past year and a half as a Case Manager Specialist, where she leads the Pathway to Success program. Through this program, Julianne supports individuals and families experiencing crisis, helping them access resources, build stability, and take meaningful steps toward a more secure and hopeful future.

›