January 10, 2023 11:00am

Raleigh members confident in housing market, predicting stabilization

The Raleigh housing market is cooling. Is this a good thing?

Photo of Leigh Tauss
Raleigh, NC Correspondent

The Raleigh housing market has seen a stunning few years. Population growth in the triangle was already booming, but the pandemic turned the heat up, creating a highly competitive market and sending housing prices through the roof.

Nationally, the feds upped interest rates in an attempt to cool inflation, and early signs show that effort seems to be working.

Here in the triangle, home prices skyrocketed in the first half of 2022 and the medium sale price hit a record high of more than $421,000. But the second half of the year saw the market saw a significant slowdown at the end of last year. The number of houses on the market dropped as did the number of sales, and the median sale price slumped to under $400,000.

However, our members are confident the market will stabilize this year and overall feel optimistic heading into 2023.

Let's break it down.

Most of you think 2023 will be another good year for the Raleigh housing market — 60 percent of members said they feel either very or somewhat confident. Just 16 percent of members were pessimistic heading into 2023, while the remaining quarter of those surveyed said they feel neither pessimistic nor optimistic.

While the last few years have certainly given homeowners reasons to be optimistic, the same can't exactly be said for buyers, who face high-interest rates and a still competitive market.

More than half of members surveyed are confident that the market will stabilize over the next year, rather than see a large fluctuation like 2022. But the remainder of members were evenly split between thinking we're headed toward a slump or a boom.

To further the health of the city's housing market and create more opportunities for low income buyers requires either increasing the city's housing stock overall or investing in more affordable housing. The biggest chunk of members — 40 percent — think that should be done in partnership with the private sector to create mixed-income developments. The second most popular solution was upzoning more sections of the city to allow for denser development and the construction of more units.

Investing in city-owned housing projects was favored by 12 percent of members, and another 12 percent thought funding programs that help low income buyers, such as down payment assistance, should be the priority.

Just 9 percent of voters thought stricter zoning to preserve existing affordability was the answer.

Two of you said you didn't know or didn't care.

About Power Poll: Power Poll asks questions of the most powerful, influential people in U.S. cities. It is not a scientific survey. But because the people responding to the surveys comprise the leadership structure of their cities, the results afford a fascinating glimpse into the thoughts, opinions, and beliefs of those in a position to make change. Power Poll is distinctly nonpartisan.

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