Raleigh-Durham Housing Market Forecast for Spring 2025: What Buyers and Sellers Need to Know

As we enter the 2025 spring homebuying season, Raleigh-Durham remains one of the most competitive real estate markets in the country. However, recent economic developments, including hotter-than-expected inflation and its impact on mortgage rates, are reshaping the outlook for both buyers and sellers.

Will home prices continue rising? Will mortgage rates decline? How competitive will the market be? Let’s break it all down.

Where the Raleigh-Durham Market Stands in Early 2025

The Triangle’s housing market remains strong but evolving due to economic shifts. Here’s a snapshot of key trends:

✅ Home prices: Still rising, but at a slower pace than previous years.
✅ Inventory: Low but improving slightly due to new construction.
✅ Mortgage rates: Higher than expected, holding between 6.75%-7.25% due to inflation concerns.
✅ Buyer demand: Strong, especially in suburbs like Holly Springs, Apex, and Pittsboro.
✅ Days on Market: Homes are still selling quickly, but overpriced listings are staying on the market longer.

Updated Spring 2025 Housing Market Predictions

1. Home Prices Will Keep Rising, But at a More Moderate Pace

• The Triangle continues to attract buyers due to job growth, top-rated schools, and lifestyle amenities.
• Expect a 4-6% increase in home prices this year—lower than past years but still solid growth.
• Entry-level homes (under $500K) remain in highest demand, leading to bidding wars in some areas.

2. Mortgage Rates Will Stay Elevated for Longer

The latest inflation report showed a higher-than-expected 3% increase in consumer prices, delaying expected interest rate cuts from the Federal Reserve. This means:

• Mortgage rates will likely stay in the 6.75%-7.25% range through spring 2025 rather than declining mid-year as previously expected.
• Buyers hoping for lower rates may need to wait until late 2025 before significant drops occur.
• Adjustable-rate mortgages (ARMs) and rate buydowns may become more popular financing options.

3. Inventory Will Improve, But Not Enough to Balance the Market

• New construction is helping ease supply constraints, but we’re still in a seller’s market.
• Existing homeowners are reluctant to sell if they have ultra-low mortgage rates from previous years.
• Expect more builder incentives such as rate buydowns and closing cost assistance to attract buyers.

4. The Triangle’s Booming Job Market Will Keep Demand Strong

• Companies like Apple, Google, and major biotech firms are fueling demand, bringing in well-paid professionals.
• The Research Triangle Park (RTP) continues to be a magnet for high-tech and healthcare workers, sustaining housing demand.
• Buyers relocating for jobs are competing for homes, especially in well-connected suburbs.

What Buyers Should Do in Spring 2025

🔹 Act sooner rather than later – waiting for rates to drop could backfire as home prices continue rising.
🔹 Get pre-approved early – competition remains strong, and sellers prefer buyers with solid financing.
🔹 Consider rate buydowns or ARMs – these options can help reduce initial monthly payments.
🔹 Expand your search – looking in emerging suburbs like Clayton, Angier, and Knightdale can offer more affordable choices.

What Sellers Should Do in Spring 2025

🔹 Price competitively – well-priced homes will still sell fast, but overpricing can lead to longer days on the market.
🔹 Offer buyer incentives – covering closing costs or offering a rate buydown can attract more buyers.
🔹 Maximize home appeal – simple upgrades like fresh paint, landscaping, and staging can increase offers.
🔹 List during peak season – March through June remains the best time to sell for maximum exposure.

Final Thoughts: A Strong Market, But Smart Strategies Matter

Despite higher mortgage rates, low inventory and job growth continue to make Raleigh-Durham a competitive market. Whether you’re buying or selling, understanding these market shifts will help you make informed decisions.

🏡 Thinking about buying or selling in the Triangle? Let’s connect! I can help you navigate today’s market and secure the best deal.

📞 Contact me today to start your real estate journey! - Scott

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