Raleigh's real estate market is on track for a major upswing in 2025. Realtor.com projects a 9% increase in home prices throughout the area—a significant rise compared to the modest changes seen in recent years.
As of November 2024, Wake County's median home price stood at about $540,000, marking a small year-over-year increase of less than 2%. However, market conditions are shifting, setting the stage for stronger growth in the coming year.
Compared to the national forecast of a 3.7% price increase, Raleigh's projected growth stands out. Sales activity is also expected to gain momentum with a predicted 2.2% rise in transactions.
Easing Mortgage Rates Could Boost Buyer Confidence
One factor behind this anticipated growth is a slight decrease in mortgage rates. Realtor.com forecasts that average mortgage rates will lower to 6.3% in 2025, offering some relief for buyers. Despite this, affordability remains a challenge as buyers may need to allocate around 30% of their income toward homeownership—a substantial jump from the 20% benchmark of a decade ago.
Inventory Shortages Could Keep Market Competitive
Low housing inventory continues to shape the market. Many homeowners are hesitant to sell due to existing low-interest mortgages, reducing available options for buyers. In November 2024, Wake County had just over 2,000 single-family homes for sale—down more than 7% from the previous year.
However, Realtor.com anticipates nearly a 12% increase in available homes nationwide in 2025. If Raleigh follows this trend, buyers may see more choices and less competition, possibly easing the price surge.
Navigating the 2025 Real Estate Landscape
For sellers, while strong demand and limited inventory can offer a pricing negotiation advantage, concerns about affordability and potential shifts in buyer activity could lead to longer selling times or price adjustments in certain markets.
At BOLD Real Estate, we are committed to guiding our clients through these market changes. Whether you're buying or selling, our experienced team is ready to help you navigate Raleigh's evolving real estate market.
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