Triangle Region Market Update: February [2024]
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Triangle Region Market Update: February [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 February 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.
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.
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.
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 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 and the Wake County area.
Here is the Triangle region market update as of February 2024.
Chapters
1. Current Housing Market Trends in February
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 $384K last month, with a 0% change. Due to its central location in North Carolina, this area is highly sought-after, making it challenging to find a home.
With many large numbers of technology and large companies moving into the area, the high demand for housing in this growing area has created a competitive market. Homes receive two offers on average and sell within 40 days of being listed.
It is predicted that the trend from last year will continue this year. Although home prices have decreased due to increasing rates, the housing market is stable, and there are no signs of a crash.
Therefore, it may be an excellent time to purchase a home in the area, as the buyer-friendly conditions, low sale prices, and average time on the market make the buying process attractive to potential buyers.
Here is the entire Triangle region market update for February, according to the MLS.
| Key Metrics | 2023 - February | 2024 - February | % Change |
| New Listings | 3,006 | 3,827 | + 27.3% |
| Closed Sales | 2,452 | 2,432 | -0.8% |
| Median Sales Price | $385,000 | $384,990 | -0.0% |
| Days on Market | 55 | 45 | -18.2% |
| Inventory of Homes for Sale | 6,846 | 5,802 | -15.2% |
2. Housing Market Forecast for 2024
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 it was up 1.7% in February 2024 compared to last year. Up to November, the forecast here predicted a significant growth of about 4% in the housing market.
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.
The housing market in the Triangle area is strongly influenced by its position as a hub for technology, education, and research. This makes it an attractive area for both residents and investors. With predicted economic growth, the population is expected to increase, leading to a high demand for housing, just like the previous year.
Although sales slumped due to mortgage rates in 2023, the outlook for the Triangle's housing market in 2024 is improving. It is expected to improve drastically and become a great location for real estate investment once again.
3. Is the Triangle a Good Place for Real Estate Investment?
There are plenty of options available for investing in real estate in the Triangle. The area has seen significant growth in companies, leading to an increase in profits and making real estate investment appealing.
The housing market is affordable, and the region boasts numerous job opportunities and excellent education, which ultimately results in 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.
Interest rates have dropped, which is good news for buyers, making property prices more affordable. However, we must keep in mind that there is still a low inventory. Despite recent struggles, the Triangle housing market is one of the most stable in the country.
4. Inventory Increase in 2024
It is predicted that stabilizing interest rates this year will lead to an increase in the number of homes coming on the market. The unstable rates last year caused people to avoid the market.
Therefore, as the rates return to normal, more homeowners may consider listing their homes, resulting in an increase in the supply of homes available on the market.
In recent times, there has been a surge in construction activities, leading to an increase in the number of homes available for rent. Consequently, there has been a rise in the supply of rental properties.
With the potential decrease in rental rates and the influx of more rental supply expected to occur this year, the median rental price is projected to increase sharply within the upcoming year.
The inventory of available housing in the Triangle area, as well as across the nation, has been low. In 2023, there was only an average of 3.5-month supply available, while a balanced market should have about 5 to 6 months' supply.
However, we are witnessing an increase in new construction hitting the market, which will help alleviate this situation in the Triangle area. Nevertheless, due to the sustained demand and people moving to this area, the market may still be highly competitive.
5. Home Values in the Triangle
Despite the increase in the supply of homes this year, home values are expected to remain mostly flat, with a predicted decline of 0.2% in home prices. However, due to the high-interest rates, renting may become more attractive than buying, resulting in an increase in the number of rental properties in the next year.
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.
Home prices are expected to continue to appreciate, albeit at a slower pace compared to 2023. Prices in desirable neighborhoods and locations are expected to experience higher growth, and the number of homes sold is expected to stabilize with an increase in sales anticipated.
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.
6. Overall 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.
The rates and prices in the housing market have a significant impact on potential home buyers and their decisions. If the interest rates and housing prices are high, first-time home buyers may be hesitant to enter the market or unable to afford a home.
Currently, mortgage rates are at a 22-year high, which has led to a decrease in demand for homes. Additionally, sellers are reluctant to sell their homes due to fears of not being able to find comparable rates. The economy plays a massive role in determining the rates and the housing market.
Economists predict that mortgage rates will stay high for a few more months, then increase above pre-pandemic levels of 3%. 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.
7. Population Growth in the Triangle
The Triangle has been steadily growing in popularity, and it has consistently been ranked as one of the best places to live for several years in a row. The region's appeal lies in its strong business sector and excellent educational opportunities.
According to predictions, the population of the Triangle region is expected to double this year. With this growth, there are numerous opportunities to improve the region's infrastructure and boost the efficiency of the city.
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 been experiencing an average population growth of around 1.7% every year, which has remained relatively steady over the years. This number means that the area will see the addition of roughly 36,000 residents per year or 700 people per week.
Owning a home in the Triangle for the long term will prove to be a sound investment decision, given the steady population growth. This growth will create and maintain a constant supply of home buyers in the area. So, if you are looking to find a new home, start searching now 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.
Above are a few sources that we used to gather most of our information about the Triangle region market in February 2024.
FAQS
How much do Wake County homes cost?
As of January, the median listing home price in Wake County was up to $486K, and the median home sold price was about $451K.
Is the Raleigh Real Estate market slowing down?
With the rest of the country, Raleigh has a slowdown in moving property and homes, spending more time on the market due to the high prices and rates. However, in the new year, prices and rates are predicted to lower, so more people are going to start moving again.
What is life like in Raleigh, NC?
Living in Raleigh, you will reside in one of the finest cities in the Southern region of the United States. Raleigh is known for its affordable living costs, local culture, and excellent education options. It is an ideal place for young professionals as well as families. The city is growing rapidly in many ways and shows no signs of slowing down.
Triangle Region Market Update: February [2024] - The Bottom Line
The year 2024 has started on a positive note, and experts predict that the housing market will continue to stabilize. This year could be a great opportunity for buyers. However, the current high rates and over-listed prices may pose a challenge for some.
It is worth noting that buyers are increasingly purchasing homes sight unseen. However, as the year progresses, the inventory and prices are expected to return to normal levels.
If you are looking to relocate somewhere affordable, has excellent weather, and an overall outstanding quality of life, searching for homes in the Triangle may be perfect. With so much to offer, this area is an ideal place to call home or visit all the fun attractions. Check out Durham County's market update if you are interested in the area.
If you want to move to the Triangle, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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