Real estate agents say Triangle housing prices are expected to go up, even though data shows brief pause

Many people who are in the market to buy a home think if they just wait a little bit longer, the Triangle real estate market will “crash” like it did in 2008, and prices will drop.

But local real estate agents say that’s likely not going to happen, and definitely not going to happen in the Raleigh-Durham area.
A recent report released by Triangle MLS shows signs that the local real estate market could be slowing down. But real estate agents in the area WRAL News spoke with aren’t so sure.

“We’re still seeing multiple offers on a good number of properties, and the real dilemma that we’re in is we do not have enough supply,” said Jason Kogok, co-owner of Coldwell Banker HPW / Luxury Movers Real Estate .

Kogok has been working in the Triangle real estate market since 2002.

“We were running at 1,000 degrees for quite some time, and now I think we’re running at 800 degrees, so we’re still super on fire,” he said.
Experts say in comparison to how the market has been growing in the past couple years, the Triangle’s real estate market is still fairly healthy and only shows signs of improving.
“We’re so used to comparing it to the last 18 or 24 months that we’ve lost some perception in really what a healthy market is,” he said.
While local real estate agents are seeing fewer requests for showings, they are still seeing plenty of offers and offers over asking prices, according to local agent Jason Dalton, who’s been working in the Raleigh-Durham area for the past 19 years.

“If you could fast forward to see it in 20 years, you’re going to be really glad you jumped on it in 2022,” Dalton said.

Could hiking interest rates make homes more affordable?

The US Federal Reserve announced Wednesday that it would be hiking interest rates for a third time by .75%, which is the highest single increase since 1994.

That, on top of record-high inflation, has a complex effect on the local housing market.

“Houses are trending toward the higher pay brackets,” said Thomas Babb, a real estate agent with Triangle MLS. “You’re going to see a lot less homes in the $ 200,000 range. That’s partially due to inflation. ”

The interest rate hike is likely going to help the market “cool off” a bit, Babb predicts.

“That has a correlation with the median sales price. It’s up from a year ago but down from last month, ”he said.

“As homes kind of level out at the price point and come down a little bit, you’re going to see the affordability index hopefully start to rise again,” Babb added.

Homes in Wake County are among the least affordable in the country, according to a new analysis of real estate market data and wage data conducted by ATTOM Data Solutions. Meanwhile, in Durham County, the situation is not quite as bad – but homes are also getting harder to buy there as well.

According to Bankrate, the average interest rate for a 30-year mortgage has risen to 5.78% just this week. For comparison, under the same conditions, a mortgage rate was only at around 3.92% in April 2020.

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