North Wake News

County of Wake issued the following announcement on Aug. 25.

Wake County’s Very High-value Segment (real estate sales transactions worth $30 million and above) topped at just over $442 million in July 2022. This is a $162 million, or 26%, decrease from June 2022’s very-high value market amount. July 2022’s very high-value segment transactions are as follows:

1. Aldon at Powell & Broad Apartments, Fuquay-Varina, NC: $129 million
2. Aviation Crossing Apartments, Morrisville, NC: $120 million
3. Waverly Place Shopping Center – Tracts 3, 10, 11 & 12, Cary, NC: $72 million
4. Bradford Square, Outparcels and Apartments, Cary, NC: $42 million
5. Double Tree Hotel, Hillsborough St. Raleigh, NC: $42 million
6. 800, 809, 813 Brooklyn Street Apartment Buildings, Raleigh, NC: $36 million

The High-value segment, (transactions worth between $1 million to $30 million), stood at 184 transactions totaling over $486 million, a decrease of just over $173 million, or 26%, from June 2022.

Transactions in the Core Market (property valued at $1 million or less) saw 2,393 transactions (325 less than June 2022) totaling just over $1.1 billion, down 12% from June 2022’s total of $1.26 billion.

Total sales value from all three segments equaled over $2 billion for July 2022, down 20% from June’s total sales of over $2.25 billion. 2,582 total sales occurred in July 2022 which is a 12.9% decrease in the number of total sales compared to June 2022’s total sales of 2,966.

Changes in median sales prices tend to be caused by activity in the core market. The occurrence or non-occurrence of large transactions has virtually no impact on the calculation of median values because there are so few of those transactions. 92.64% of July 2022’s transactions occurred in the core market.

Lending saw slight decrease in July 2022

Real estate lending activity in July 2022 decreased by 15% from June 2022’s level and compared to July 2021, it was down 39% There were 3,834 deed of trust transactions in July 2022, where June 2022’s deed of trust transactions showed 4,564 – a loss of 730 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 increasing refinance of mortgage loans.

In early 2019 through 2021, we saw a significant increase in the second type of lending activity. The following chart shows the comparative gap between deeds of trust and deeds. This gap, compared to a baseline of early 2020, quantifies the level of strength in the mortgage refinance market. For comparison, the gap measured 1.48 in January 2020 and was at its widest in February 2021 at 2.5. July 2022 saw the gap between deeds of trust and deeds volume narrow to a ratio of 1.18 below May’s ratio of 1.22. That is a 3.27% decline. This indicates the refinancing market continued to cool in July 2022.

More information        Original source can be found here.