Source: WRAL Tech Wire —
RALEIGH – Navigating the Triangle real estate market will be tougher at the beginning of 2023 between the higher cost of homes and the higher costs of borrowing to buy a home compared to the beginning of 2022.
And the region’s real estate markets may be tough for both buyers and for sellers, multiple local real estate agents told WRAL TechWire in interviews this week.
That’s because of the rapid price appreciation that buyers, sellers and observers experienced in 2021 and in the first half of 2022, said Tony Fink, a licensed real estate agent with Linda Craft Team REALTORS. But that’s not likely to continue in 2023, as mortgage interest rates have more than doubled than a year ago, according to the latest data from Freddie Mac, released on Thursday.
“Owners need to understand that prices rose noticeably in 2021 and 2022, driven in part by artificially low interest rates,” said Fink. “And rising incomes.”
Still, one trend – the Triangle continuing to be one of hottest in the country – may continue and even intensify, in 2023, said Fink.
That’s because fewer home sale transactions are expected. Owners who may otherwise choose to sell and buy a new house might instead decide to stay put amidst economic uncertainty and higher borrowing costs, Fink said.
Realtor Daniel Harmon has already seen some cooling off from all-time highs.
“We are still going to see a healthy real estate market in the Triangle area in 2023,” he said.
TRIANGLE REAL ESTATE MARKET REMAINS STRONG
Despite rising mortgage interest rates, Triangle real estate remains strong, said Fink.
“Unless we experience significant job loss or change in tax regulations impacting housing, home ownership and the overall health of the Triangle real estate market remains strong,” said Fink. “The Triangle housing market has returned to normalcy.”
Overall, across the United States, existing home sales are expected to decline in 2023 compared to 2022, at least according to the chief economist of the National Association of REALTORS, Lawrence Yun. He told NPR’s Marketplace that the latest estimate is about a 7% to 10% decline in overall annual sales in the United States.
Nationally, the number of pending home sales fell in November, the sixth consecutive month, according to the National Association of REALTORS.
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