Rising mortgage rates could cool demand for Triangle homes

Demand for homes in the Triangle appears to be softening as mortgage rates continue to rise.

• Online traffic in May for homes in the Triangle was down around 20% compared to last year, and continued to fall in June, according to data gathered by Triangle Multiple Listing Services.

• Showings also fell from around 17 per listing in January to 11 in May, meaning individual houses were attracting less attention.

Why it matters: Last year was an "unprecedented market high," Matt Fowler, executive director of the Triangle MLS, told Axios.

• But surging mortgage rates are making it more expensive for individuals to purchase homes, and real estate experts are watching to see if it will cool the local market.
• The median price for a home sold in the Triangle region last month was $385,000 — up 22% year over year, according to data from Triangle MLS.

What they're saying: Rising mortgage rates should have a negative influence on home prices, according to last month's Triangle Area Residential Realty Market Report.

• But "supply and demand are still the overriding factors that determine house price[s]," Stacey Anfindsen wrote in the report.

And while demand appears to be dropping, it might not be dropping fast enough to make a difference, Fowler said. It still only takes a few people to start a bidding war.

• Historically, homes usually would sell for just a little under asking price, Fowler said. In Wake County, homes are currently selling nearly 6% over list price, according to Triangle MLS data for May.

The big picture: "It's a near record market still," Fowler said, "But I would expect, in the second half of the year, to see closings start to taper off."