Triangle Real Estate Market vs. National Trends

As we move through the summer months, it's essential to understand the current trends in the real estate market, both nationally and locally here in the Raleigh, NC (Triangle) area. The latest data provides a compelling snapshot of where the market stands and how the Triangle region compares to national trends.

National Real Estate Trends

According to the National Association of REALTORS® (NAR), U.S. existing-home sales fell for the second consecutive month, sliding 1.9% month-over-month and 1.9% year-over-year. This decline was observed across all four regions of the country. Higher borrowing costs and rising home prices are significant factors dampening demand, pushing many prospective buyers to the sidelines and causing a notable slump in market activity.

Despite an increase in inventory, home prices have continued to rise nationally. The median existing-home price reached $407,600, marking a 5.7% increase from the same period last year and setting a record high for the month. Total inventory heading into May stood at 1.21 million units, a 9% increase month-over-month and a 16.3% increase year-over-year, resulting in a 3.5 month’s supply at the current sales pace.

Triangle Real Estate Trends

Contrasting with the national decline in home sales, the Triangle region is experiencing some unique dynamics:

• New Listings: There was a substantial 21.7% increase in new listings, reaching 4,862. This surge in new listings indicates a healthy level of seller confidence in the market.

• Under Contract Sales: Under contract sales saw a modest increase of 1.3%, totaling 3,605. This suggests a steady demand despite broader economic challenges.

• Inventory: Inventory in the Triangle increased by 9.4% to 7,073 units. More homes on the market could potentially ease some of the competitive pressures buyers face.

• Median Sales Price: Interestingly, the median sales price in the Triangle decreased slightly by 1.2%, from $410,000 to $405,000. This contrasts with the national trend of rising prices and could indicate a slight cooling of the market locally.

• Days on Market: Homes in the Triangle are selling faster, with days on market decreasing by a significant 72.5% to just 11 days. This rapid turnover highlights the high demand and competitive nature of the market.

• Months Supply of Inventory: The months supply of inventory increased by 14.3% to 2.4 months. While still lower than the national supply, this increase is a positive sign for buyers looking for more options.

Comparing the Triangle to National Trends

While the national market is grappling with falling home sales and rising prices, the Triangle area shows a more balanced picture. The increase in new listings and inventory suggests a healthier market with more opportunities for buyers. The slight decrease in median sales price also offers a bit of relief compared to the national trend of escalating prices.

However, the Triangle's quick turnover rate (with homes selling in just 11 days) indicates that demand remains robust, and buyers need to act quickly. The increased months supply of inventory provides some breathing room but remains tighter than the national average, reflecting the region's strong desirability and economic resilience.

How Home Buyers Can Use This Information

1. Act Quickly: With homes selling in just 11 days, buyers need to be prepared to move fast. Pre-approval for a mortgage and having your financial documents ready can give you an edge in making quick decisions.

2. Expand Your Search: The increase in new listings means more options are available. Consider expanding your search parameters slightly to take advantage of the increased inventory.

3. Leverage the Slight Price Dip: The slight decrease in median sales price in the Triangle is an opportunity to negotiate better deals. Work with your real estate agent to identify homes that are priced competitively.

4. Stay Informed on Market Trends: Regularly review market reports and stay in touch with your real estate agent to keep abreast of any shifts in inventory and pricing.

How Home Sellers Can Use This Information

1. Price Competitively: Although the median sales price has slightly decreased, homes are still selling quickly. Price your home competitively to attract serious buyers and potentially spark bidding wars.

2. Highlight Your Home’s Unique Features: With more homes on the market, make sure your home stands out. Highlight any unique features or recent upgrades in your listing.

3. Be Ready for Quick Transactions: With the rapid turnover rate, be prepared for quick transactions. Have all necessary paperwork and disclosures ready to expedite the process.

4. Work with a Knowledgeable Agent: Partner with a real estate agent who has a deep understanding of the local market and can help you navigate the increased competition.

Understanding these trends is crucial for anyone looking to buy or sell a home in the Triangle area. While the national market faces challenges with falling sales and rising prices, the Triangle region presents a more optimistic scenario with increasing listings, steady demand, and a slight cooling in prices.

For more detailed insights and personalized advice on navigating the Triangle's real estate market, feel free to reach out. Stay informed, act swiftly, and let's make the most of the current market conditions together.