Home sales remain sluggish in the Triangle
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Home sales in the Triangle remain down year over year, as higher mortgage rates continue to weigh on new buyers and home sellers.
Why it matters: 2024 is looking like another year of sluggish home sales nationwide, according to a recent CoreLogic report.
The big picture: Elevated mortgage rates, increased home values and a lack of inventory are dampening the appeal and affordability of buying a home.
- Pending sales of existing U.S. homes plunged in April to lows not seen since the pandemic shutdowns, Axios' Courtenay Brown reports.
Zoom in: Kimberlie Meeker, founder of Carpenter Real Estate Group in Raleigh, says many potential home sellers still aren't ready to give up their 3% mortgages and list their homes, keeping inventory off the market.
- "Because inventory is so low, if the perfect [house] pops up, you still have to get in and see it right away," Meeker told Axios. "I'm still seeing multiple offers on houses."
By the numbers: New and existing home sales in the Raleigh metro area were down 16.2% between March 2023 and March 2024, according to CoreLogic.
- In the Durham-Chapel Hill metro area, sales were down 15%, according to Triangle Multiple Listing Services.
- Meanwhile, inventory of homes for sale fell across the Triangle and the median sales price grew to $407,000, per Triangle MLS.
State of play: As homeowners shy away from moving, some shoppers have sought more options or better deals among new construction, particularly in the Sun Belt.
- Although that juiced new home sales in 2023, the houses represent a relatively small part of the overall market.
- New U.S. home sales fell 7.7% in April from a year earlier, per census data.
What they're saying: "There is no real indication of widespread price drops or a substantial decline in interest rates," CoreLogic economist Thomas Malone wrote in the report, noting that strong rental demand could spur more investor home purchases.