Triangle Region Market Update: March [2024]
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Triangle Region Market Update: March [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 March 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.
The housing market in the Triangle in 2023 was dominated by two factors: fast-rising interest rates and decreased home affordability. However, experts predict that 2024 will bring more stability to the housing market, and rates will steadily decrease.
This means that 2024 could be a better time to buy a home, especially in the suburbs, where the housing supply is expected to increase. However, the biggest issue that will continue to affect the housing market is a lack of land to build on.
Despite this uncertainty, the economy is predicted to continue to grow with the arrival of big companies such as Apple, Google, and Meta in the area. So, if you're interested in moving to the Triangle or selling your home, it's important to keep an eye on the housing market and upcoming trends.
Here is the Triangle region market update as of January 2024.
Chapters
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 $399K in March, with a +2.6% change from the previous year. 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 March, according to the MLS.
| Key Metrics | March 2023 | March 2024 | % Change |
| New Listings | 3,952 | 4,121 | +4.3% |
| Closed Sales | 3,601 | 3,087 | -14.3% |
| Median Sales Price | $389,000 | $399,000 | +2.6% |
| Days on Market Until Sale | 49 | 41 | -16.3% |
| Inventory of Homes for Sale | 6,624 | 5,826 | -12.0% |
2. Home Values in the Triangle
Despite an increase in the housing supply this year, home values are predicted to remain mostly flat with a projected decline of 0.2%. However, high interest rates may make renting more attractive than buying, leading to a surge in rental properties next year.
Home prices are expected to appreciate, albeit at a slower pace than in 2023. Prices in desirable neighborhoods and locations are projected to experience higher growth, and the number of homes sold is set to stabilize with an increase in sales anticipated.
The market is expected to be more accessible for first-time buyers due to a slight price decrease and lower mortgage rates compared to the previous year. The luxury market will experience slow growth and decline, while the rental market will remain robust with 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.
3. 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 there was an increase in total units sold in March with an increase of 16%. However, this month's total units sold were lower than what it was last March.
Up to November, the forecast here predicted a significant growth of about 4% in the housing market. 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.
The housing market continues to show resilience; the total number of homes available this month is lower by 22% compared to last year. However, the median sale price of The Triangle was higher than last year. The current median sold price is 5% higher than in February, which is a pro for sellers.
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.
4. Inventory in the Triangle
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. Compared to last year, the total number of homes available this month is lower by 1,313 units (22%). The total number of homes is also 4% smaller than last month's inventory.
As the housing rates return to normal, more homeowners may consider listing their homes. This could lead to an increase in the supply of homes available on the market. In recent times, there has been a surge in construction activities, resulting in more homes available for rent.
As a result, 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 and 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. Mortgage Rates in the Triangle
Following months of mortgage rates being above 7%, both buyers and sellers are slowly adapting to the increased rates. Over the past couple of years, mortgage rates have declined and are expected to continue to do so, though the impact may not be significant.
The current mortgage rates are at their highest in 22 years. This has resulted in a decrease in demand for homes. Additionally, sellers are hesitant to sell their homes because they fear they won't be able to find comparable rates. The economy has a significant impact on determining the rates and the housing market.
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 unable to afford a home or hesitant to enter the 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.
6. Population Growth
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. The current population in the Triangle region is about 2,190,786, which means there are about 470 people per square mile.
According to the North Carolina State Demographer, migration has played a critical role in the state's growth and will likely remain the main driver of population growth in the next decade.
The Triangle region has experienced an average population growth of approximately 1.7% every year, which has been relatively consistent over time. This figure suggests that the area will gain approximately 36,000 new residents each year or 700 people per week.
The population of the Triangle region is predicted to double this year, providing numerous opportunities to improve the city's infrastructure and enhance its efficiency. Despite the hot real estate market, housing costs in the area are still relatively affordable compared to other regions.
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.
7. Is the Triangle a Good Place for Real Estate Investment?
There are plenty of options available for real estate investment in the Triangle. The region has experienced significant growth in companies, leading to increased profits and making real estate investment more appealing.
The housing market is affordable, and the area offers numerous job opportunities and excellent education, resulting in a high quality of life. Owning land in the Triangle is a solid investment because it will accumulate significant value over time since the area is losing land to build.
The Research Triangle's diverse landscape offers something for any kind of buyer. 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, it's important to 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.
Methodology
We used information and data from different sources as well as our own data to determine the Triangle Region market update for March 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 March.
FAQS
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.
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.
Are home prices going down in North Carolina?
Home prices in North Carolina are rising overall. The median home prices are up 5.6% since February 2023 and up 30.8% in the past three years due to many factors.
Triangle Region Market Update: March [2024] - The Bottom Line
It seems like 2024 has started on a positive note, and experts predict that the housing market will continue to stabilize throughout the year, making it a good time to invest.
However, due to high rates and over-listed prices, the hurdle may be higher for buyers. Interestingly, some buyers are buying homes without seeing them first, but as the year progresses, inventory and prices are expected to return to normal levels.
Moreover, 2024 is predicted to be an even better time to buy a home, mainly due to the dropping interest rates and the potential increase in the supply of homes, especially in the suburbs. However, the biggest challenge would be the limited availability of land to build new homes in the Raleigh-Durham 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.
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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