The real estate market nationwide has seen some instability over the last year due in large part to interest rate increases. How has that affected North Carolina real estate, especially Raleigh?

When the market is changing, it's essential to work with professionals who really understand the area and can interpret the trends accurately. At Chatham Homes Realty, we have insider knowledge of Raleigh and surrounding areas, and we have all the information you're looking for.

Market Overview

There have been some shifts in the Raleigh housing market recently. The construction of single-family homes was robust in 2022, topping out in March with the highest number of building permits issued in a decade.

But by February 2023, there was a 31.5% decrease in housing permits. This was most likely driven by higher mortgage rates because the potential impact of rates on buyers has left builders more cautious.

What do these changes mean for the supply and demand?

Housing Supply and Demand in Raleigh

Although home building has slowed in Raleigh, this change has been balanced by a dip in buyer demand. On the whole, however, sales remain strong. 

Between the beginning of 2022 and 2023, the housing supply increased from roughly 1.5 months to 2.5 months. Although this increase may look like a significant change, the supply remains substantially below the six-month supply that's commonly thought to be what's needed to comfortably meet buyer demand. 

This modest change in supply is matched by a small slowdown in buying behavior. Buyers are slower to get into bidding wars, and they are making more modest offers. This is likely due to interest rate hikes. Some potential buyers are waiting to buy until interest rates come back down. 

Overall, both supply and demand have decreased somewhat. However, it's important to remember that these changes are small. The market remains strong on the whole, and housing prices reflect that. While the national median home price decreased between February 2022 and one year later by 0.3%, in Raleigh, it went up by 2.5%.

Growth Predictions

With these modest changes in the market, the big question is what direction it's heading now. But despite the unsettled mood in the housing market nationwide, North Carolina real estate analysis suggests that Raleigh will continue to remain steady. Experts predict that there will be no more than a shift either up or down by more than 1 to 2%.

Naturally, the big question for real estate trends everywhere is what will happen with interest rates. Although rates aren't expected to return to their recent record lows soon, experts believe that they will slowly start to come down. In general, the worst of the rate increases are behind us, and the market is adjusting to the current rates. 

On the whole, Raleigh remains a strong market for real estate. People continue to move to the area at a good rate because it's such an appealing place to live. For home sellers, there is a steady level of interest in buying in the area, and for buyers, there are a few more homes to choose from. Although it can be unnerving to see changes in the market, an expert in local real estate can help you find your way through that works to your advantage. 

Navigate the Raleigh Real Estate Market with Experts you can Trust

 

Chatham Homes Realty is here with the answers you need in the Raleigh real estate market. We have a long relationship with this area, and our knowledge of the housing market is unmatched. If you'd like to hear more about how we can help you find the home of your dreams in Raleigh, contact us today!

 

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