Home Sales Fall with Rising Mortgage Rates

Local Market Update – July 2023

Affordability constraints have continued to limit home buying activity this summer, with existing-home sales falling 3.3% month-over-month nationwide as of last measure, according to the National Association of REALTORS® (NAR). Mortgage rates have approached 7% in recent months, leading many prospective buyers to put their home purchase plans temporarily on hold. But higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower.

New Listings in the Triangle region decreased 25.2 percent to 3,627. Under Contract Sales were down 0.9 percent to 3,270. Inventory levels fell 16.5 percent to 5,192 units.

Prices were fairly stable. The Median Sales Price decreased 1.0 percent to $416,000. Days on Market was up 66.7 percent to 20 days. Absorption rates were even with last year as Months Supply of Inventory remained flat at 1.7 months.

Despite a drop in existing-home sales, home prices have remained near record highs, with a national median sales price of $410,200 as of last measure, 0.9% below the all-time high of $413,800 recorded in June 2022, according to NAR. With only 3.1 months’ supply heading into July, the lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets, where competition for homes remains particularly strong.

Click on the links below for more detailed information about the Real Estate Markets in Durham, Orange & Chatham counties:

Durham County
Orange County & Chapel Hill
Chatham County

For information about how the local market affects your real estate needs, contact any of the real estate experts at Peak Swirles & Cavallito Properties.

*All data from Triangle Multiple Listing Service, Inc. ©2023