At Umstead & Oak, we believe in keeping you informed about the ever-evolving Raleigh housing market. As we transition into November 2023, we have some noteworthy insights to share:

Home Prices: Raleigh's median home price in September 2023 rose slightly to $417,000, marking a little over a 1.0% increase from the previous year. October 2023 median home prices continued the trend, rising to $420,000 - a 1.2% increase compared to the previous year. Raleigh has resumed a gradual increase in home prices two months in a row after a slight dip back in the Summer months. 

Inventory: The Raleigh housing market is experiencing a steady decline in available homes for sale. In June 2023, the inventory had grown to nearly 1,000 homes for sale, but has since dipped to just under 875 homes for sale. The earlier increase is indicative of more homeowners opting to list their properties, however the changing of the seasons coupled with higher interest rates have curtailed demand, so sellers are backing off on listing their homes in October. New listings reached an all-time low in October 2023 for the city of Raleigh. 

Mortgage Rates: Over the past few months, we've seen a steady rise in mortgage rates, making homeownership marginally more expensive. In July 2023, the average 30-year fixed-rate mortgage reached 7.0%, up from 6.8% in June 2023. Today, the average 30-year fixed rate mortgage rests at around 7.51% (Mortgage News Daily), which is down from 8.0% back in October 2023. 

Despite these changes, Umstead & Oak remains optimistic about the strength of the Raleigh housing market in November 2023. The demand for homes in our vibrant city remains fairly robust, with more eager buyers than available listings and steady migration to the area. However, buyers may find themselves with slightly more negotiating power this month compared to previous months.

Key Takeaways:

• Home prices are expected to stabilize or see a slight decrease in November 2023.
• Inventory is on the decline, offering buyers less options and sellers a slight advantage with less competition. 
• Buyers may have some negotiating leverage, but it is still a seller's market with low inventory levels. 
• The market remains somewhat competitive, driven by moderate demand.

For those contemplating a home purchase in Raleigh this holiday season, it's crucial to be well-prepared for a competitive market - especially as rates fluctuate. We recommend working with a skilled real estate agent who can guide you through the process and help you find a home that suits both your needs and budget. 

Here are some additional tips for buyers:

• Be ready to act swiftly, as homes are still selling quickly - especially updated properties priced well. 
• Be prepared for potential offers above the asking price, depending on the home. 
• Be open to concessions, such as waiving certain contingencies, if needed.

Sellers in the Raleigh housing market should also take note:

• Price your home competitively to attract buyers.
• Consider staging your home to make it more appealing.
• Be open to negotiation, as buyers may seek to find common ground.

Overall, we're committed to providing you with the latest market insights and expert guidance to help you make informed real estate decisions. If you have any questions or need assistance navigating the Raleigh housing market, don't hesitate to reach out to our dedicated team.