|MEDIAN REAL ESTATE TRANSFER PRICES ARE UP 31%
OVER THE PAST FOUR YEARSRaleigh, NC – For both the fourth quarter and full year 2018 the value of Wake County real estate transactions is up substantially compared to 2017.During 2018, $14.2 billion worth of real estate changed hands. This is an increase of $1.7 billion, or about 14%, compared to 2017’s amount of $12.5 billion. During the fourth quarter of 2018, the value of transactions was $3.7 billion compared to $3.2 billion in the same 2017 period.
Most of the increase in both the quarter and full year total was driven by large commercial transactions. In 2018 there were 24 sales valued at $50 million or more compared to nine in 2017. These transactions account for $1.1 billion of the $1.7 billion year-over-year increase.
The Register of Deeds Office measures the value of real estate transactions by the amount of excise taxes collected on deeds. Excise taxes are based on the purchase price of a real estate, calculated as $2 per every thousand dollars of the sales price.
“The typical property owner is also seeing an increase in valuations,” said Register of Deeds Charles P. Gilliam, “the median value of a real estate sale in 2018 was $290,500, up 6%, or $16,500, compared to $274,000 during 2017. In 2014, the median value was $222,000 and is now up 31% from four years ago. This shows a compound annual growth rate of 6.8%”
For 2018 deed volume (property sales) was virtually unchanged compared to 2017. The number of deeds recorded reflects the number of real estate transfers without regard to value.
New deeds of trust, also known as mortgages on real estate, for the fourth quarter of 2018 were down 15% compared to the fourth quarter of 2017. For all of 2018, they were down 10% compared to 2017. Deed of trust volume reflects the number of lending transactions on real estate without regard to the dollar amount of the loans. Declining deed of trust volume continues a long-term trend that reflects a decrease in real estate loan refinancings.