North Raleigh Today

County of Wake issued the following announcement on Dec. 3.

Wake County’s very high-value segment (real estate sales transactions worth $30 million and above) had three transactions in the month of November. This is a $186 million, or a 79%, increase from October’s 2022’s very-high value market amount. November 2022’s very high-value segment transactions are as follows:

          Bradford Subdivision, Lot 1 & Lots 14-33, Cary, NC : $149 million

          NorthChase at Midtown, Raleigh, NC: $48 million

          Garner Business park Garner, NC: $37 million

The High-value segment, (transactions worth between $1 million to $30 million), stood at 150 transactions totaling over $398 million, an increase of $86 million, or 28% increase from October 2022.

Transactions in the Core Market (property valued at $1 million or less) saw 1887 transactions (23 less than October 2022) totaling just over $835 million, down 2% from October 2022.

Total sales value from all three segments equaled over $1.5 billion for November 2022, up 25% from October’s total sales of over $1.2 billion. 2040 total sales occurred in November 2022 which is a very small decrease in the number of total sales compared to October 2022’s total sales of 2049.

A breakdown of the dollar value of transactions by price range for the years 2014 – 2019 is available at Wake County 2019 Property Market and Trends 2014 - 2019

Lending saw a decrease in November 2022

Real estate lending activity in November 2022 decreased by 10% from October 2022’s level and compared to November 2021, it was down 56% There were 2,960 deed of trust transactions in November 2022, where October 2022’s deed of trust transactions showed 3295 – a decrease of 335 transactions.

Real estate lending activity has two primary components.

1. The first is lending that coincides with a transfer of ownership of real estate. This is seen in the typical residential home sale where simultaneously a seller’s loan is paid off and a buyer takes out a new loan as ownership is transferred by deed.
2. The second is where a new loan secured by real estate is taken out, but there is not a change in ownership of the underlying 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. Relatively more deeds of trust signify an increasing refinance of mortgage loans.

November 2022 saw the gap between deeds of trust and deeds volume continue to narrow. Indicating the refinancing market continues to slow down.

Original source can be found here.