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North Carolina continues to win accolades for our strong economy and business savvy. Named Best State for Business by CNBC in 2023 for the second year in a row, NC’s burgeoning businesses continue to attract companies to make the state home—a key contributor to our top 3 U.S. Census Bureau in population growth, following only Texas and Florida. “This incredible growth gives us great confidence in our local real estate market,” says Compass’ Renee Smith. Here, we forecast 2024.
Hot Take: Gender Gap
Who rule the world—er, real estate market? Women. While women couldn’t even get a mortgage or a credit card without a male cosign until 1974 (sit on that fact for a second…), single females now outpace single men in NC property ownership 14% to 9% per current Census data. While women’s weekly earnings still lag, the growing gender gap for single homeownership skews female—with NC ranking No. 6 in states with the widest gender gap.
Pro tip: Falling rates is likely to fuel demand and drive up prices. Experts say now is the time for smart buyers to start shopping.
Market Outlook—According to Resident Experts
“2024 should have a fairly positive outlook. Both buyers and sellers will adjust to the reality of interest rates and that the median home price has remained relatively flat (a slight decrease from Jan ’23 compared to Jan ’24). With both sides having a more realistic view of what the market looks like now, they’ll both adjust expectations and 2024 will certainly be another year of growth in the Triangle.” —Sarah Hunter, Broker/Realtor, City to Coast Realty
“Our local real estate market has shown an unusually early surge this year. There has been a noticeable increase in home showings and a resurgence of buyers. … Additionally, the Triangle region continues to attract hundreds of new residents daily, setting the stage for a projected 4% growth in the housing market for 2024. —Shawn Britt, Broker/Owner, Realty World Triangle Living
“Sellers remain in an advantageous position with significant home appreciation over the past few years, and home equity is strong! A lot of opportunity exists on both sides of the transaction—whether buying or selling. It’s a great time for potential sellers to take advantage of their high equity position, and buyers are feeling more settled and accepting of rates! —Renee Smith, Managing Broker, Compass Raleigh Midtown; Managing Director, Compass Carolinas | Compass Real Estate
“The potential for Fed interest rate cuts later this year could further boost the market by possibly lowering mortgage rates and bolstering buyer confidence. However, key challenges remain tight supply and affordability constraints due to limited used home inventory. Balancing this demand with adequate supply will be crucial for a truly thriving housing market in the Triangle.” —James Flanagan, Vice President of Community Experience, Tri Pointe Homes Raleigh
Relocating buyers from other states amounts to ~23% of our buyer population
Trend Report
12 trends to expect in Raleigh real estate in 2024 according to local experts
⬆️ Buyer Demand
“As interest rates fall from a 2023 high and the hype of inflation settles a bit, buyers who held back in the latter part of last year are back in full force!” —Renee Smith, Managing Broker, Compass Raleigh Midtown; Managing Director, Compass Carolinas | Compass Real Estate
Continued Market Stabilization
“After a period of price appreciation and limited inventory, 2024 should see some stabilization. Mortgage rates are expected to remain somewhat elevated, but we anticipate a leveling in Q2/Q3.” —James Flanagan, Vice President of Community Experience, Tri Pointe Homes Raleigh
Making Moves
“Interest rates will probably not go back to the 2–3% days, and buyers and sellers are starting to adjust their mindsets to the current conditions. We’re seeing more buyers and sellers start to make moves instead of sitting and waiting for rates to drop.” —Sarah Hunter, Broker/Realtor, City to Coast Realty
⬆️ Housing Prices
“Low inventory levels and high demand will likely contribute to a competitive market, making it more challenging for first-time homebuyers.” —Shawn Britt, Broker/Owner, Realty World Triangle Living
⬆️ Multiple Offers
“The return of multiple offers on hot properties—aka homes that are priced right, in best locations and don’t need many updates. We’ll see more of this as interest rates fluctuate too.” —Sarah Hunter
Affordability Focus
“With affordability continuing to be a concern, homebuilders may shift toward smaller, more efficient homes—and even possibly attached products that can cater to first-time buyers and budget-conscious consumers.” —James Flanagan
⬆️ Move-In Ready Demand
“Buyers looking for move-in ready homes where updates have already been made—or new construction—to avoid renovations.” —Sarah Hunter
⬆️ Seller $hellout
“The return of repair requests and seller paid closing costs: as the market changes and sellers need to sell, we may see more willing to give up money for repairs or closing costs to keep buyers under contract and close the sale.” —Sarah Hunter
Stress on Sustainability
“As environmental concerns become more prominent, homebuyers are increasingly looking for eco-friendly features and energy-saving technologies—and, just as importantly, quality over quantity.” —Shawn Britt
Transplant Takeover
“NC—and specifically the Triangle—is a highly desirable destination and many buyers are flocking here for our great economy, highly educated population, incredible lifestyle, comfortable weather, and proximal beaches and mountains!” —Renee Smith
Live/Work/Play
“With consumers continuing to prioritize outdoor spaces and community experiences, developers are focusing on building homes in walkable neighborhoods with access to parks and green spaces, as well as amenities like pools, fitness centers and more. This trend could also lead to the development of mixed-use communities combining homes with retail, office space and entertainment options.” —James Flanagan
Tech Effect
“An influx of tech-related jobs will likely influence the demand for housing and commercial real estate in the area. —Shawn Britt
$78,631
Median household income for City of Raleigh
2.2 months
Active inventory—a stable market typically includes a six-month supply.
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