US Home Sales Increase, While Year-Over-Year Prices Decrease

Local Market Update – March 2023

Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring , increasing for the third consecutive month, according to NAR.

New Listings in the Triangle region decreased 10.9 percent to 3,928. Under Contract Sales were down 1.3 percent to 3,806. Inventory levels rose 97.5 percent to 4,849 units.

Prices were a tad soft. The Median Sales Price decreased 2.0 percent to $387,000. Days on Market was up 176.9 percent to 36 days. Buyers felt empowered as Months Supply of Inventory was up 150.0 percent to 1.5 months.

Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.

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