Prospective homebuyers still struggling as home sales decline

FAYETTEVILLE, N.C. (WTVD) -- It continues to be a tough housing market for buyers out there. Reports say home sales fell for the eighth consecutive month, and experts say rising prices are to blame.

"Before, when the market had such beautiful interest rates, we had such a booming market," said Lisa Pursley of Fathom Realty NC. "People were putting higher funds down, and they were less likely to walk away. But the shift in the market has dialed down buyers' enthusiasm substantially. I'm seeing people get cold feet pretty quick."

Pursley said there is still a healthy inventory for buyers in the Fayetteville area because people are constantly moving in and out. The broader inventory is in part explained by the large, transient military community. However, the rising interest rates are putting a damper on sales. Moreover, those who are building homes from scratch are losing buying power as prices increase.

The numbers say it all: A report from Rocket Homes says it's been a sellers' market in Fayetteville since last year. Median home prices rose by more than $16,000 thousand since last year. Meanwhile, the number of homes for sale has dropped by almost 5% in the past month. Also, almost 50% of homes are being sold over the asking price.

However, there is a silver lining. Pursley says buyers are gaining some leverage as other buyers are dropping out of the race:

"I'm seeing a little bit more negotiations," Pursley said. "Before buyers just submitted their offer and prayed. And they were one of a hundred, you know. And now it's kind of cool, because when you list a property you're not seeing five hundred offers come in, so you have a little bit less competition."

Pursley had advice for those trying to buy that new home. She said it is important that buyers keep in touch with what the interest rates are, and that they adjust their purchase prices with interest rates they can afford.