News Summary
Zillow has updated its forecast for North Carolina’s housing market, predicting a decline in home values across various cities by 2026. As more homes come onto the market amid rising mortgage rates, buyers may find greater choices and potentially lower prices. However, not all areas will experience the same level of decrease, with some cities, such as Goldsboro and Forest City, expecting the largest drops. This evolving landscape presents challenges and opportunities for prospective homeowners navigating market affordability.
Raleigh – North Carolina’s housing market is poised for significant changes as Zillow has revised its projections, predicting a substantial decline in home values across several cities by 2026. The company has shifted its earlier forecast of a 0.6% increase to a predicted nationwide drop of 1.9%. This shift is attributed to rising home listings and elevated mortgage rates, which may further indicate price drops by the end of the year.
Currently, North Carolina continues to exhibit characteristics of a seller’s market, with buyers facing a cycle of high prices and limited options. However, with the increasing availability of homes, prospective buyers may soon find more choices and potentially lower prices as sellers react to market conditions. To attract interest, many are reduce prices significantly.
The average home value in North Carolina stood at $336,483 as of April. Although Zillow predicts price declines, it is important to note that not all regions will be affected equally. The following cities in North Carolina are forecasted to experience the largest drops in home values by April 30, 2026:
- Goldsboro: 3.3%
- Forest City: 2.8%
- Rockingham: 2.8%
- Roanoke Rapids: 2.4%
- Shelby: 1.5%
- Marion: 0.8%
- Raleigh: 0.6%
- Henderson: 0.6%
- Greensboro: 0.5%
- Asheville: 0.5%
Specific projections for Durham indicate a slight drop of 0.2% in home prices over the next year, while Charlotte’s market is expected to see a minimal increase of 0.5%. Regions anticipating lower home price adjustments often coincide with more affordable housing options. For instance, Roanoke Rapids has an average home value of $114,398, while Rockingham’s is at $124,299.
In contrast, the priciest housing markets in the state include Highlands, with an astronomical average home price of $2,750,000, followed by Governors Club at $1,192,500. Other notable high-value areas include Marvin ($1,171,250) and Lake Lure ($1,068,000).
Demand for housing has surged since the pandemic, with the median home price in Charlotte rising to $400,000, marking a remarkable 58.2% increase since 2020. The competitiveness of the market is illustrated by demographic trends, with single women reportedly accounting for 24.71% of loans from a notable mortgage provider in 2024.
The supply of homes, however, is hampered by various regulatory factors, such as single-family zoning laws and lot-size minimums, which have restricted housing potential in Raleigh by 20% since 2019. As a result, many potential homeowners are finding it increasingly difficult to enter the market due to unsustainable prices coupled with high-interest rates.
It’s noteworthy that institutional investors accounted for 7% of home purchases in North Carolina last year, down slightly from 7.4% in 2023. This decline indicates a cooling interest from these buyers, which could be linked to high prices and rising interest rates that also discourage individual buyers.
As North Carolina navigates its evolving housing landscape, the expected price decreases in certain cities could provide a glimmer of hope for prospective homeowners struggling to manage the challenges of affordability in a complex market.
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Additional Resources
- Charlotte Observer
- Carolina Journal
- Axios Raleigh
- My Fox 8
- US News
- Wikipedia: North Carolina
- Google Search: North Carolina housing market
- Google Scholar: North Carolina housing market 2025
- Google News: North Carolina real estate
