Triangle spring housing market heats up after slow start: 'Rude awakening'

Elaina Athans Image
Monday, April 1, 2024
Triangle spring housing market heats up after slow start
Realtors in the Triangle are once again seeing bidding wars for properties, which is great for sellers but a challenger for buyers.

RALEIGH, N.C. (WTVD) -- Simon Kang grew up in Raleigh, but he has been living with his wife in Austin, Texas, recently. The couple got a rude awakening when they decided to relocate back to the City of Oaks.

"It's been more of a rude awakening," said Kang. "Surprising enough, Austin's housing market was a lot easier to deal with."

They've been searching for a new place to live for nine months.

"People are outbidding us by astronomical amounts. We actually lost out about 4 homes, the first home we got outbid by $70,000," said Kang.

"We're back to multiple offers. Last I heard about 33% of market offers were multiples, and we've already seen some sight unseen (purchases) in the spring markets. There's a ton of pent-up demand that's been waiting on the sidelines," Realtor Erica Sizemore said.

Realtors said the spring housing market is finally revving up after a slow start and they think the reason is because of the federal reserve is holding the line with interest rates.

"Spring has definitely popped and the reason is the interest rates. Stability breeds activity," said Sizemore. "With the fact that interest rates are now looking to stabilize for the next 12 to 18 months, people are jumping in because they realize there's nothing they're waiting for."

According to the latest market data from Zillow, the average home value in Raleigh is now more than $434,000 and Durham is more than $397,000.

Sizemore is working on several projects now where clients are subdividing lots.

"This is an example of what our market needs -- more new homes," she said. "By taking one lot and dividing it in two, now we have twice the inventory."