As we begin 2025, the Wake County real estate market is showing signs of change—but not in the ways many might expect. With prices slightly down, more homes available for sale, and interest rates remaining high, the market is shifting in ways that present both opportunities and challenges for buyers and sellers alike.

For buyers, is this the moment to take the upper hand? For sellers, is now the right time to cash out or hold tight?

While the headlines might suggest drastic changes, there’s much more to the story. Here’s a breakdown of what’s really happening in Wake County’s real estate market and how it impacts those looking to buy or sell this year.

What’s Happening in Wake County Real Estate and Why?

The key changes in the Wake County real estate market are important to understand, especially as they differ from typical seasonal trends.

First, home prices have dipped slightly. The median home price in the area is currently $450,000, a decrease of about $10,000 compared to December 2024. However, this dip is not a sign of a market crash. It’s a normal seasonal adjustment. Every January, after the holiday rush, prices tend to pull back a little due to fewer buyers in the market. This drop in price is expected to be temporary and is a pattern that happens every year.

What’s more significant this year is the increase in inventory. The number of homes on the market has risen to 4,094, which offers buyers more options compared to recent months when inventory was tighter.

Why is inventory increasing? There are two main reasons:

1. Homes are taking longer to sell. The average time on market for a property has increased to 51 days—a notable change from the days when homes would sell in a matter of days, sometimes with multiple offers.
2. Higher interest rates are keeping some buyers on the sidelines. Mortgage rates are still hovering around 7%, which is prompting many buyers to hold off on making a move, hoping for better terms down the line. This has led to a 20.4% drop in lending activity, meaning fewer people are applying for mortgages right now.

Why Are Interest Rates Still High?

The continued high interest rates are a result of broader economic factors. Despite inflation cooling from its peak, it remains a concern. The Federal Reserve is also keeping a close eye on job reports and rising wages, which make the Fed hesitant to cut rates in fear of reigniting inflation.

Additionally, looming tariffs on imports are expected to increase costs for businesses and consumers, further complicating the decision to reduce borrowing rates. All these factors combined mean that borrowing money remains expensive, and the Fed is likely to hold rates steady for the time being.

What This Means for Buyers & Sellers

For those looking to buy or sell in Wake County, understanding how the current market dynamics affect their options is crucial.

For Sellers: The days of listing a home at any price and quickly attracting multiple offers are over. Today, pricing a home correctly from the start is essential. Sellers must also work with experienced agents who know how to market their properties effectively.

However, there’s still good news. Serious buyers are out there, and homes that are well-priced and in move-in condition will continue to attract interest. Homes that are priced right and well-presented will still sell—just with more careful planning and strategy involved.

For Buyers: While mortgage rates at 7% can be a challenge, buyers have more leverage now than in recent years. With more homes on the market and less competition from other buyers, there’s room to negotiate. Sellers may be more open to offering concessions, such as covering closing costs or providing price reductions.

Moreover, it’s important to remember that rates could drop in the future, allowing the option to refinance. However, waiting for lower rates may mean missing out on the right home at today’s prices, which could increase if demand picks up again.

Affordability Challenges & Living Wages

Affordability remains a key challenge for many buyers, particularly as home prices and interest rates combine to push monthly mortgage payments higher.

In Wake County, the comfortable living wage for a single adult is around $49,740 per year, or $23.90 per hour. For a family with two adults and one child, the comfortable living wage increases to $99,680 per year, and for a family with two children, it rises to $111,040 per year.

When comparing this to the median home price of $450,000, a 20% down payment, and current mortgage rates, many buyers will find that monthly mortgage payments could exceed $3,000, which is beyond what many households can comfortably afford. This, combined with rising everyday costs such as groceries, healthcare, and childcare, has contributed to a decline in lending activity.

As a result, it’s crucial for potential buyers to have a solid financial strategy, factoring in not just the price of the home but also long-term financial goals. Working with an agent who understands both the local market and affordability challenges is essential.

Final Thoughts

The Wake County real estate market in 2025 is still strong but is evolving. Sellers must approach the market with a clear strategy, while buyers can find opportunities for negotiation and may have more time to make decisions.

For those looking to navigate these changes, now is the time to connect with a trusted real estate professional who understands both the opportunities and challenges of today’s market.

If you’re curious about how these shifts affect your specific situation, don’t hesitate to reach out! Our team at The Coley Group is ready to help you understand exactly what’s possible in this market.

And for those still searching for the perfect neighborhood, take our 5-minute neighborhood match survey to find your ideal community in the Triangle area! Get the Raleigh relocation guide for even more tips on moving to the Triangle!

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