Redfin housing forecast: ‘Sales will continue to slow'

Real Estate
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The Raleigh, North Carolina, housing market is holding steady while several cities across the United States see home sales decrease. | Maria Ziegler/Unsplash

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Compared to some cities, Raleigh, North Carolina, is holding its own when it comes to home sales.

Redfin, a real estate company, reports that while 10 housing markets are reporting slowdowns, Raleigh sales are steady.

“Our national outlook for the housing market is that sales will continue to slow, but some of the early indicators of demand are stabilizing,” Taylor Marr, deputy chief economist of Redfin, said in a Thursday report.

Redfin surveyed data from 90 regions, with Raleigh coming in near the center of the pack, at 42nd.

The 10 regions experiencing the most appreciable cool downs are all western metropolitan areas. Midwestern, and Northeastern sales have dropped off, as well, but at a slower pace because they didn’t see the same sort of run-up in prices during the real estate boom, according to the report.

Although Raleigh sales are holding steady, with Wake County average prices hitting a record high in June, no market is heating up, Redfin stated.

One of the factors behind the slowdown in housing sales is mortgage rates have gone up in tandem with Federal Reserve rate hikes. The average rate for a 30-year fixed-rate mortgage in January was 3.22%; this week, it stood at 5.54%, FreddieMac statistics show.

Higher mortgage rates translate into higher monthly payments, basically reducing a buyer’s purchasing power, and fewer homes may be available in a specific price range.

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