Buying a house in Raleigh is easier, but not cheaper

The Triangle’s real estate market is starting to level off, according to the latest data from Triangle MLS.

Why it matters: After two-plus years of plummeting inventory and sky-high home prices, Raleigh-area buyers have waited a long time for a little relief.

What’s happening: Rising mortgage rates have spurred a shift in the market.

• When mortgage rates go up, like they have since this spring, it tends to create a buyers’ market, AnnMarie Janni, founder and leader of Element Realty Group at Allen Tate Realtors, said.
• "This is a reset for Raleigh because we’ve been undervalued for so long," Janni said.

Flashback: In 2021, buyers had no bargaining power. It wasn’t unusual for buyers to have to quickly offer $100,000 in non-refundable due diligence, Janni said.

Now, buyers can take their time and wait for the right house at the right price for them, Janni tells Axios.

• And a lot of first-time buyers have re-entered the market as investors aren’t gobbling up properties like they were in recent years.

By the numbers: Inventory of homes for sale was up 78.2% year over year in August for the Triangle.

• Closed sales are down 9.6% compared to this time last year.

• And while median and average home prices are up year over year, they’ve fallen in recent months.
• In June, the median sales price for homes was $421,757 and in August it was $405,000.
• And 38.5% of active listings in the Raleigh metro dropped their asking price in August, compared to just 4.1% in February, per Redfin.

The other side: These market changes are only helpful for people who can afford to take on the 6%+ mortgage rates — or are willing and able to adjust their home budgets.

What’s next: Janni predicts demand in Raleigh will stay strong and homes will appreciate at a steady, normal pace.