Home sales slow in Triangle as mortgage rates rise

Home sales were down more than 17% year over year in Raleigh, per RE/MAX’s February report.

Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market but people can’t afford them.

What's happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, according to Freddie Mac.

By the numbers: Home sales have plummeted far less in the last year than the national average of 24%.

• The number of houses on the market here more than quadrupled compared to last year: 687 houses were on the market in February 2022. That number was nearly 3,000 last month.
• Home prices increased slightly in February 2023, with houses selling for a median of $410,000, up from almost $395,000 the same time last year.
• And the days a home was on the market increased by 60%. In February, it was 56 days, up from 35 last year.

Zoom out: Because there’s less competition right now, buyers don’t have to front as much cash as they did a year ago, Axios' Emily Peck reports.

Between the lines: Buyers who can afford these mortgage rates have more power.

• They have more options than a year ago, they can take their time searching and they can make offers that aren’t wildly above list price.

Yes, but: These rates make buying unaffordable for many.

What's next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up.

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