RALEIGH, N.C. (WNCN) — The red-hot real estate market might be cooling off.
Some sellers in the Triangle are dropping their prices — but not as many as there are across the nation, a study found.
The study published Tuesday from real estate brokerage Redfin showed prices dropped in May for only about 17 percent of homes in both Raleigh and Durham.
By comparison, a year ago prices fell in just 4.7 percent of homes in Raleigh and 7.1 percent of homes in Durham.
That puts the two Triangle municipalities near the bottom quarter of the more than 100 largest cities across the country when it comes to price drops.
Prices fell last month for nearly half of homes in Provo, Utah, where that 47 percent rate was the highest in the nation among the largest cities. More than 45 percent of homes in Tacoma, Washington; Denver; and Salt Lake City also had a price drop.
Roughly half of metropolitan areas saw more than a quarter of sellers drop their asking price last month.
The increase in price cuts is due to several factors including home prices that had been skyrocketing, higher mortgage rates and inflation, experts say.
“There are two kinds of sellers in today’s market: Those who already know the market has cooled, and those who are learning about the cooling market as they go through the selling process,” Redfin chief economist Daryl Fairweather said.
“The former wants to sell quickly before the market slows further and they’re willing to price slightly below comparable homes in their neighborhood right away, and the latter may have to drop their price if their home doesn’t attract buyers within a few weeks,” he continued. “As more sellers come to terms with the slowing market, fewer homes will have price drops.”
The median sale price last month was $450,000 in Durham and $442,000 in Raleigh. That price in Durham was 50 percent higher than it was two years ago, while it was about 45 percent higher in Raleigh over the same time frame.