High interest rates sticking around cause sluggish homes sales in the Triangle

Home sales in the Triangle remain down year over year, as higher mortgage rates continue to weigh on new buyers and home sellers.

Why it matters: 2024 is looking like another year of sluggish home sales nationwide, according to a recent CoreLogic report.

The big picture: Elevated mortgage rates , increased home values and a lack of inventory are dampening the appeal and affordability of buying a home.

• Pending sales of existing U.S. homes plunged in April to lows not seen since the pandemic shutdowns, Axios' Courtenay Brown reports.

Zoom in: Kimberlie Meeker, founder of Carpenter Real Estate Group in Raleigh, says many potential home sellers still aren't ready to give up their 3% mortgages and list their homes, keeping a lot of inventory off the market.

• So when a home near downtown or job centers does come on the market, it can still attract several interested buyers.
• "Because inventory is so low, if the perfect [house] pops up, you still have to get in and see it right away," Meeker told Axios. "I'm still seeing multiple offers on houses."

By the numbers: New and existing home sales in the Raleigh metro area were down 16.2% between March 2023 and March 2024, according to CoreLogic.

• In the Durham-Chapel Hill metro area, sales were down 15%, according to Triangle Multiple Listing Services.
• Meanwhile, inventory of homes for sale fell across the Triangle and the median sales price grew to $407,000, per Triangle MLS.

State of play: As homeowners shy away from moving, some shoppers have sought more options or better deals among new construction, particularly in the Sun Belt.

• Although that juiced new home sales in 2023, the houses represent a relatively small part of the overall market.
• New U.S. home sales fell 7.7% in April from a year earlier, per census data.

What they're saying: "There is no real indication of widespread price drops or a substantial decline in interest rates," CoreLogic economist Thomas Malone wrote in the report , noting that strong rental demand could spur more investor home purchases .