Triangle Region Market Update: January [2024]

Triangle Region Market Update: January [2024]

Are you searching to move to the Triangle or sell your home and are wondering what the housing market is going to be like this year? Keep reading to learn more about the market update in January 2024.

The Triangle area in North Carolina is booming, with Raleigh-Durham being one of the fastest-growing metropolitan areas. Hundreds of new residents arrive in the Triangle every day, looking for a place to call home, making the housing market popular. 

In 2023, the Triangle's 2023 housing market was dominated by two main factors: the fast-rising interest rates and decreased home affordability. However, it has been predicted that 2024 will bring more stability to the region's housing market this year, and rates will steadily go back down. 

2024 has been predicted to be a better time to buy a home between the dropping interest rates and the potential for more supply of homes. We are expected to see more housing, especially in the suburbs. The biggest issue that will continue this upcoming year is no more land to build. 

However, yes, the housing market is on the fence and will get better; on the other hand, the economy is predicted to continue to grow as well, with many big companies such as Apple, Google, and Meta making their move into the area. So, if you are interested in moving to the Triangle or selling your home, here is what you should know about the housing market and upcoming trends. 

Here is the Triangle region market update as of January 2024.

1. Current Housing Market Trends

The Research Triangle Park housing market has been and still will be very competitive. The median sale price for a home in this area was about $373K last month, down 7% since last year. Being centrally located in North Carolina, this area is a highly sought-after place to live, making it harder to find a home. 

With many large numbers of technology and large companies moving into the area, the growth here is leading to a demand for more housing, which makes the housing market very competitive. Homes, on average, get two offers and sell after about 40 days on the market. 

This trend last year is predicted to continue to stay the same. While there has been a decline in home prices due to the increasing rates, the housing market does not show signs of a crash this year. The market remains stable and maintains a positive trend. 

With the current and future market trends, now may be an excellent time to purchase a home in the area. Buyer-friendly conditions, low sale prices, and average times on the market make the buying process attractive to potential buyers. 

2. Housing Market Forecast for 2024

The housing market continues to show resilience, with the average home value reaching $427,107, reflecting a 1.6% increase over the past year. The predicted growth in 2024 suggests continued stability in the housing market this year. 

Homes are in high demand in the Triangle, especially in Raleigh, typically going pending under a month. There may be flight fluctuation, with the data suggesting a -0.1% change, which is predicted to increase by the end of February 2024. Up to November, the forecast here predicted a significant growth of about 4% in the housing market. 

The housing market here is driven by the hub for technology, education, and research, making it a very attractive area for residents as investors. With the predicted economic growth, the population is also expected to increase, leading to a high demand for housing, just like the previous year. 

The outlook for the Triangle's housing market in 2024 is improving after the sales slumped due to the mortgage rates in 2023. It will improve drastically and start to become a great location to invest in real estate again. 

3. Is the Triangle a Good Place for Real Estate Investment

The choices for investing in real estate in the Triangle are abundant. Companies are coming and growing in the area drastically, making profit increases and the appeal of real estate here. The housing market is affordable, and the area is full of endless job opportunities and excellent education, and it offers a high quality of life. 

Owning land in the Triangle is a solid investment because, over time, it will accumulate significant value since the area is losing land to build. The diverse landscape of the Research Triangle means that there is something for any kind of buyer here. There are a number of new residential developments with modern conveniences that have evolved and are expected to continue to grow rapidly. 

With interest rates dropping, this news is good for buyers, leading to more affordable property prices; however, we still need to keep in mind that there is still a low inventory. However, when it comes to stability, the Triangle housing market may seem like it has been struggling recently, but it is one of the most stable housing markets in the country. 

4. Inventory Increase

With the stabilizing interest rates this year, it is predicted to lead to more homes coming on the market this year. The unstable rates last year made people stay away from the market, so once they go back to normal, more homeowners may list their homes, creating more supply for homes on the market. 

On the other hand, there has been a lot of new construction leading to more supply of homes and for rent leading to more rental supply. With the potentially lower rates and increased supply coming this year, the median increase will increase in the area, resulting in a sharp growth within this upcoming year. 

The housing inventory in the Triangle, as well as nationally, has been low. In 2023, there was an average 3.5-month supply available when a balanced market should be about 5 to 6 months. However, we are seeing more new construction hitting the market, which will help alleviate this in the Triangle; however, with the sustained demand and people moving here, we still may have a highly competitive market. 

5. Rates

After months of mortgage rates above 7%, both sellers and buyers will get used to the elevated rates. Mortgage rates have fallen over the past couple of years and are predicted to continue to decrease but not make a huge impact. 

Both the rates and prices impact home buyers and their decisions about whether or not they are going to make the big purchase. If the interest rates and/or the housing prices are high, then first-time home buyers may be hesitant to enter the market or be unable to afford a home. 

Mortgage rates are running at a 22-year high, crimping a housing market with high prices. The rise in rates has cooled demand for homes, while sellers are reluctant to sell their homes because of fears they will not be able to find comparable rates. Based on many things, the economy plays a massive role in the rates and the housing market. 

Economists do predict that mortgage rates will remain high for a few more months and then start to come down well above the 3% rates that many home buyers had before the pandemic. There are many things that you can do as a home buyer to get lower rates, such as having a solid credit score, down payments, and saving money.

6. Home Values

Despite the supply increase this year, home values are still expected to remain mostly flat, forecasting a 0.2% decline in home prices. However, the elevated interest rates will also make renting more attractive than buying, so we may see more rentals in the next year since people are afraid of the rates and market recently. 

Home prices, though, are expected to continue appreciating but at a slow pace compared to 2023. Prices in desirable neighborhoods and locations will see higher growth, and the number of homes sold will stabilize with the prediction that there will be an increase in sales. 

The market is forecasted to be more accessible for first-time buyers due to a slight price decrease and lower mortgage rates than the previous year. The luxury market will experience slow growth and decline, and the rental market will remain very strong with a continued high demand in 2024. 

However, keep in mind that these are predictions and that the housing market and economy change all the time, so just make sure you keep your eye out on the market and get in touch with a trustworthy real estate agent if you are interested in buying or selling this year. 

7. Population Growth

It is predicted that the population in the Triangle will double this year. There are many opportunities to enhance the region's infrastructure to improve the effectiveness of the city with this growth.

The Triangle is steadily growing due to the attractiveness of the area. This metro area has been ranked as one of the best places to live for many years in a row now. Part of the attraction for this area is the business sector and high education opportunities. 

With the hot real estate market, the housing costs here are still relatively affordable compared to other areas. According to the North Carolina State Demographer, migration has been a critical component of the growth of the state. It will likely remain the driver of population growth over the next decade. 

The Triangle area has experienced an average population growth of about 1.7% per year and has remained relatively steady over the years. This number means that this area will add approximately 36,000 residents per year or 700 people per week. 

For the long term, owning a home will be a great investment in the Triangle as the population growth will create and maintain a steady supply of home buyers, so if you are looking to find a new home, start searching to find your dream home.

Methodology

We used information and data from different sources as well as our own data to determine the Triangle Region market update for 2024 and the future predictions of the housing market and economy. There were various data to use, so we put them together to predict the trends for this year. 

• Triangle MLS
• World Population Review
• The News Observer

Above are a few sources that we used to gather most of our information about the Triangle region market. 

FAQS

Are housing prices going down in Raleigh, NC?

As of December 2023, Raleigh home prices were up 5.3% compared to last year, selling at a median home price of $400K. With the limited inventory, home prices tend to be higher, and in this upcoming year, the inventory is predicted to get better, but prices will not vary much. 

Is Raleigh overpriced?

While costs are without a doubt rising because of the economy, Raleigh still remains very affordable to live in based on many things compared to other metro areas. 

Is the Raleigh real estate market slowing down?

Like the rest of the country, Raleigh has seen a slowdown in property, with more homes spending more time on the market because many people have been scared of the housing market due to the high rates. 

Triangle Region Market Update: January [2024] - The Bottom Line

2024 is off to a good start, and the housing market is predicted to continue to stabilize and be the year of buying. It is still a good time to invest, even though the hurdle may be higher, given the high rates and over-listed prices. Buyers are often today buying homes that they have not seen yet, but over this year, the inventory and prices will begin to go back to normal. 

2024 has been predicted to be a better time to buy a home between the dropping interest rates and the potential for more supply of homes. We are expected to see more housing, especially in the suburbs. The biggest issue that will continue in this upcoming year is there is no more land to build. 

However, yes, the housing market is on the fence and will get better; on the other hand, the economy is predicted to continue to grow as well, with many big companies such as Apple, Google, and Meta making their move into the area.

If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.