The monthly report from the National Association of Realtors shows sales of pre-owned homes fells six percent in July and about a 20 percent drop from a year ago.
An economist says we're witnessing a housing recession in terms of declining home sales and home building.
"If you're buying, you definitely want the prices to be lower," said Raleigh resident Kiya Cowins.
She's looking for a break of any kind in the housing market.
The single mother is trying to buy a property for herself and her one-year-old son.
Cowins has put in offers, but has yet to go under contract.
"(It's) difficult, it's challenging. Something will be on the market for a day or a few days," she said.
Compass Realtor Danni Dichito argues that demand in the Raleigh market is still hot.
She doesn't believe buyers are going to see a significant shift now or six months from now, although she says sellers are adjusting.
"Sellers are definitely having to become more realistic with their pricing from the get-go, so that's giving buyers a better chance of getting a home that feels comfortable for them," said Dichito.
The changes are offering a renewed opportunity to local investors, who haven't been able to compete financially.
"It's been completely bonkers," said Raleigh resident Megan Coffman. "We put a kibosh on buying new properties this year anticipating prices just keep going, going up. Out-of-state investors are gobbling everything up for way over what anyone in Raleigh knows its worth."
Economists believe we are seeing this housing recession because of the rising interest rate.
The Federal Reserve is expected to increase the rate again.