The election is over. The Federal Reserve has cut interest rates (the second month in a row). Now, after a brief hiatus, house hunters are jumping back into the market, experts say.
Early-stage demand, which measures requests for home tours and other homebuying services, has jumped 17% year over year, according to the latest Redfin data.
It’s the highest level since August 2023, continuing a climb that started immediately after the election, it added, even with high mortgage rates — 6.84% compared to 7.29% a year ago.
But what’s happening in the Triangle?
Based on analysis of housing data and insights from local Realtors, here’s a snapshot of the latest trends:
Despite headwinds, Raleigh-Durham is referred to as a fast-growing, “supernova market,” according to the Urban Land Institute (ULI) and PwC, which released their annual report, “Emerging Trends in Real Estate 2025.”
Like its astronomic namesake, the local market has experienced explosive growth and high investor interest, alongside metros like Nashville and Austin, and well above national averages.
“Over the next five years, the number of residents in these metro areas is projected to grow by 8%, four times the forecast U.S. population growth of 1.9% over the same period,” the report said.
On the flip side: Unfettered growth has invited some big city problems such as “congestion and rising cost of living,” it said.
Raleigh ranked No. 12 for overall real estate prospects and No. 33 for home-building prospects, ULI found.
Raleigh ranked among the top 10 U.S. cities for year-over-year increases in both single-family home sales and inventory levels, according to RE/MAX’s October housing report.
In Raleigh, active inventory remains on the rise, a 38.4% jump year over year. Home sales are also up by 17.7%, the report said.
“Properly priced and staged homes are still selling fast,” said John Wood, owner of RE/MAX United in Cary, who has been an agent in the Triangle since 1988. “Homes that are sitting on the market longer are typically a reflection of being overpriced or not in as good of condition compared to those that sell quicker.”
Even so, inventory is not where it needs to be. “We still have less than three-months’ supply,” he said. In a healthy housing market, it’s more like a four- or five-month supply.
In the greater Triangle, inventory has grown by 10.7% year over year, according to Doorify MLS, which covers 16 counties, including Wake, Durham, Johnston and Orange.
Townhouse-condos led a substantial 38.9% jump in available properties compared to last year. Single-family homes also saw a steady rise, up 4.5% year over year, Doorify found.
“With homes selling faster and more properties becoming available, we expect to see continued momentum in the coming months,” said Matt Fowler, CEO of Doorify MLS.
The region’s surging population, coupled with a long-running housing shortage, continue to prop up prices.
Raleigh’s market is “somewhat competitive,” according to the latest Redfin data. Homes are also getting snatched up quicker.
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The median sale price (mid-point where half cost less and half cost more) was $433,000 in October. That’s up 5.8% since last year.
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On average, homes sell after 29 days on the market compared to 37 days last year. There were 419 homes sold, up 16.7% from last year.
Durham’s market is “very competitive,” but prices aren’t rising as quickly, Redfin found.
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The median sale price was $413,000 in October. That’s down .24% since last year.
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On average, homes sell after 32 days on the market compared to 40 days last year. There were 242 homes sold this year, down .82%.
Chapel Hill is “very competitive,” Redfin found. But homes are staying on the market slightly longer.
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The median sale price was $622,500 in October. That’s up 34.2% since last year.
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On average, homes sell after 42 days on the market compared to 40 days last year. There were 242 homes sold this year, down 20%.
Billion-dollar-loss events like Hurricane Helene are driving up costs.
The Rate Bureau, which represents some 110 companies operating in the state, is seeking a statewide 42.2% average homeowners’ insurance rate increase.
Attorneys on both sides kicked off a quasi-judicial hearing into the request in October. It remains ongoing. State law gives the commissioner 45 days to issue an order once the hearing concludes.
On the ground, climate change is becoming an increasingly significant factor for buyers and sellers, said Samantha Greaves, a broker with RED Collective | COMPASS in Durham.
“Following Helene, buyers are more conscious of flood zones and energy efficiency. Sellers are also proactively making repairs and protecting their homes from future storms,” she said.
The record-high rent growth in 2021 and 2022 has flattened out. Across the Triangle, prices continue to slide as new, amenity-rich buildings hit the market.
In Raleigh, the median rent (mid-point where half cost less and half cost more) for a one-bedroom fell 0.8% to $1,240 in October, according to Zumper’s national rent report. Prices are down 7.3% year over year.
Rents for two-bedroom units dropped to $1,530. That’s down 0.6% since last month and 3.8% year over year.
In Durham, the median rent for a one-bedroom fell 1.4% to $1,380 last month, Zumper found. Prices are down 3.5% year over year.
Rents for two-bedroom units slipped 1.2% to $1,640, down 3.5% year over year.
On Nov. 7, the Federal Reserve cut the federal funds rate — which banks charge each other for overnight loans — by 0.25 percentage points.
It lowered the benchmark short-term rate to a range of 4.5% to 4.75%, its lowest since February 2023.
While the Fed doesn’t directly set long-term rates — including the 30-year fixed mortgage rate — its policy has an impact.
The CME FedWatch Tool currently shows a 52.5% probability of a quarter of a point rate cut in December.
Ryan Fitzgerald, owner of Raleigh Realty, isn’t so sure.
He points to the annual inflation rate, which increased to 2.6% last month.
“The Federal Reserve’s stance is becoming more uncertain,” he said. “It’s unlikely that these rate cuts will continue in the new year.”
As of Nov. 21, mortgage rates are hovering around 6.84% for the 30-year fixed-rate mortgage, according to FreddieMac, the government-sponsored entity backing roughly 23% of all residential mortgages.
“Heading into the holidays, purchase demand remains in the doldrums,” it said. “While for-sale inventory is increasing modestly, the elevated interest rate environment has caused new construction to soften.”
Once the markets feel more certain as the Trump administration settles in, expect the 30-year rate to fall to the 6% range, Vishal Garg, founder of Better Home & Finance, an online mortgage lender, told MarketWatch.
The building boom is spilling well beyond the Triangle’s edges.
Faced with a chronic housing shortage, high prices and competition from out-of-state investors, many buyers are expanding their search.
Bedroom towns — like Angier and Lillington in Harnett County and Sanford in Lee County — are high on their list, said AnnMarie Janni, founder and leader of Element Realty Group at Allen Tate Realtor.
Chatham County’s Pittsboro also continues to gain popularity because of “lot sizes and build quality,” said the member of Raleigh Regional Association of Realtors (RRAR).
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