Deed of Trust activity had a decrease of 10% from October’s 2022’s level.
Wake County Register of Deeds Tammy L. Brunner
Raleigh, NC – 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
Median sales prices
The median sales price of a parcel of Wake County real estate for November 2022 was $453,000, down $7000 from October’s 2022’s price of $460,000.
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. 93% of November’s 2022’s transactions occurred in the core market.
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.
- 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.
- 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.
Long-Term Trends in Real Estate Activity
Aggregate value of real estate transactions
Real estate transactions tend to be seasonal; it is useful to compare monthly results to the corresponding month of prior years.
Aggregate value of real estate transactions - linear
The following chart shows the aggregate dollar value of real estate transfers in Wake County linearly (month by month) from January 2020 through year-to-date 2022. Because real estate transactions tend to be seasonal, this information should be evaluated in conjunction with the year-over-year comparison as shown in the preceding chart.
The following chart shows the number of deeds recorded in Wake County for each month from 2020 through year-to-date 2022. Numbers of deeds recorded reflect the velocity of real estate activity without regard to the dollar value of a transaction.
Real estate lending
This chart shows the number of deeds of trust recorded in Wake County for each month from 2020 through year-to-date 2022. A deed of trust is the legal instrument used in North Carolina to secure a loan with real estate used as collateral.
Methodology and Additional Information
The statistics in this report are derived from instruments recorded in the office of the Wake County Register of Deeds. Under North Carolina law, changes in property rights in real estate, including security interests in real estate, are recorded with the Register of Deeds of the county where the real estate is located.
The value of real estate transferred is measured by excise tax assessed on the consideration in a real estate transaction. Excise taxes are calculated as $1 in tax for every five hundred dollars of consideration. About 99% of these transactions were property transfers by deed and the balance were miscellaneous transactions such as acquisitions of a right of way. The calculation of the aggregate value of real estate includes all transactions. The calculation of the median price includes all transactions where the property containing excise tax was transferred by deed.
The number of deeds and deeds of trust recorded with the Register of Deeds reflects the total volume of property and loan transactions regardless of the dollar value of the real estate or the amount of the loan. The number of deeds includes transfers where monetary consideration did not change hands, such as transfers within a family. In November 2022, 22 % of deeds attracted no excise tax. In 2021, that percentage was 25% in the first quarter, 20% in the second quarter, 21% for the third quarter, and 23% for the fourth quarter.
For a complete picture of Wake County real estate activity, the information in this report should be considered in conjunction with data available from other sources, such as rezoning applications and new building permits, plus other information published by the Register of Deeds available at https://www.wakegov.com/news?department=29
Contact: Tammy Brunner, Register of Deeds
This report was initially released on December 2, 2022.
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