Real Estate Market Update: North Carolina & Georgia

As we closed out 2025 and look ahead to the new year, the real estate markets in North Carolina and Georgia are telling a story of stabilization and evolving opportunities. Both states continue to attract new residents and economic investment, but the frenzied pace of recent years has given way to a more balanced market dynamic that presents distinct advantages for both buyers and sellers.

North Carolina Market Snapshot - December 2025

Key Market Metrics

According to the latest MLS data compiled from multiple sources including the NC Realtors Association and Redfin, North Carolina's housing market concluded 2025 showing remarkable resilience:

Statewide Performance:

• Median Home Price: $325,000 to $389,100 (varying by source and region)
• Year-over-Year Price Growth: 3.1% to 8.2%
• Days on Market: 60-62 days
• Inventory Levels: 4.2 to 5.7 months of supply
• Homes Sold: Approximately 13,413 in the most recent reporting period
• Sales Volume: Down 0.7% to 2.5% compared to last year

Market Balance Shifts

The North Carolina market is transitioning from a tight seller's market toward a more balanced environment. With a 4.2 months of supply and homes averaging 62 days on market, buyers have ample time to make decisions and secure better deals. This represents a significant shift from the pandemic-era scarcity that defined the market just a few years ago.

Regional Variations:

• Triangle Market (Raleigh-Durham): Median prices around $389,100 with continued strong demand from tech sector growth and university-driven population
• Charlotte Metro: Robust activity with median prices near $387,400, up 3.1% year-over-year
• Smaller Markets: Greensboro and Fayetteville showing emerging investment opportunities with more affordable entry points

Mortgage Environment

Mortgage rates remained largely unchanged during December, with the average thirty-year fixed mortgage rate hovering around six point two percent. This stability, while not dramatically improving affordability, has provided predictability that allows buyers to plan with confidence.

Georgia Market Snapshot - December 2025

Key Market Metrics

Georgia's housing market is showing signs of cooling from its peak, with MLS data revealing a more buyer-friendly environment:

Statewide Performance:

• Median Home Price: $348,990 to $373,700 (depending on data source)
• Year-over-Year Price Change: -0.055% to 5.8% (varied by region)
• Days on Market: 67-68 days
• Inventory Levels: 3.3 to 6 months of supply
• Homes Sold: Approximately 18,337 in recent reporting
• Sales Volume: Down 7.1% to 7.2% compared to last year

Atlanta Metro Spotlight

The Atlanta market has experienced notable adjustments in late 2025:

In December 2025, Atlanta homes were listed to buy for a median price of $374K, which is a 4% decrease to November 2024 last month, and a 3% decrease to December 2024 last year. However, other sources report prices as high as $440,000, reflecting significant neighborhood-level variations.

Atlanta Market Dynamics:

• Active Listings: 20,998 properties as of early December
• Price Reductions: 39.9% of homes with price cuts (above typical 30-35% levels)
• Median Time to Sale: 84 days
• Months of Supply: 3.4 months

According to real estate company RE/MAX's latest National Housing Report, median home sale prices fell from $395,000 to $385,000 between October 2024 and October 2025, a 2.5% decrease, making Atlanta the No. 3 city nationwide for falling house prices.

Statewide Inventory Growth

In November 2025, there were 60,090 homes for sale in Georgia, up 14.3% year over year. This inventory expansion is giving buyers significantly more options than they've had in recent years, though it hasn't led to a market crash—rather, a healthy normalization.

What to Expect in Early 2026

Mortgage Rate Projections

The mortgage landscape heading into 2026 offers cautious optimism. Housing experts expect mortgage rates to remain close to their current average in 2026, with Redfin and Realtor.com both predicting rates to average around 6.3% in 2026, while Bright MLS forecasts an average of 6.15% by year-end.

Some analysts believe rates could briefly dip below 6% if inflation continues cooling, though most expect rates to stabilize in the low-to-mid 6% range throughout the year.

North Carolina Outlook for Q1-Q2 2026

Expected Trends:

• Continued Balanced Market: The shift toward equilibrium will continue, with neither buyers nor sellers holding overwhelming leverage
• Modest Price Growth: Expect 2-4% annual appreciation, well below the double-digit gains of 2021-2022
• Inventory Stability: Supply should remain healthy at 4-6 months, providing buyer choice without overwhelming the market
• Strong Fundamentals: Job growth in tech, healthcare, and life sciences will continue supporting demand

Who Benefits:

• Buyers: More negotiating power, less pressure to waive contingencies, and time to make informed decisions
• Sellers: Still experiencing appreciation, though competitive pricing and home staging are now essential
• Investors: Opportunity to identify value in secondary markets as competition eases

Georgia Outlook for Q1-Q2 2026

Expected Trends:

• Price Stabilization: After the modest declines in late 2025, expect prices to stabilize or show minimal growth (1-3%)
• Inventory Normalization: Continued healthy supply will persist, particularly in metro Atlanta
• Sales Volume Recovery: Looking ahead to 2025, the market is projected to see a 9% increase in home sales. This momentum should carry into early 2026
• Market Differentiation: High-demand neighborhoods will outperform, while overpriced areas may see continued softness

Who Benefits:

• First-Time Buyers: Improved affordability and reduced competition make entry more feasible
• Sellers with Realistic Pricing: Properly priced homes will still sell within 60-75 days
• Investors: Opportunities in rental markets as homeownership remains challenging for many

Strategic Recommendations for 2026

For Buyers in Both Markets

1. Get Pre-Approved Early: With inventory improving, being financially ready positions you to act quickly on the right property
2. Focus on Fundamentals: Look for homes in areas with strong job growth, good schools, and infrastructure investment
3. Negotiate Thoughtfully: Use inspection contingencies and request seller concessions on closing costs or repairs
4. Don't Try to Time the Bottom: If you find the right home at a fair price with manageable payments, the "perfect" moment may be now

For Sellers in Both Markets

1. Price Competitively: Homes priced near fair market value continue to sell, while overpriced listings face longer days on market.
2. Invest in Presentation: With more inventory, staging and professional photography are no longer optional
3. Be Prepared to Negotiate: Buyers have more leverage now; flexibility on price or terms can accelerate your sale
4. Consider Market Timing: Spring 2026 should see renewed buyer activity as rates potentially ease and weather improves

For Investors

Both North Carolina and Georgia offer compelling opportunities:

• North Carolina: Focus on Triangle and Charlotte markets for tech-driven rental demand; consider secondary markets for better cash-on-cash returns
• Georgia: Atlanta suburbs and growing cities like Savannah and Athens show promise; rental demand remains strong despite cooling sales market

The Bottom Line

As we enter 2026, both North Carolina and Georgia real estate markets are experiencing healthy corrections rather than concerning crashes. The pandemic-era frenzy has evolved into a more sustainable market where fundamentals matter, transactions take time, and both buyers and sellers can succeed with the right strategy.

For North Carolina, continued population growth and economic diversification provide a solid foundation for steady appreciation. For Georgia, the temporary price adjustments in markets like Atlanta are creating entry opportunities that haven't existed in years.

Whether you're looking to buy your first home, sell to upgrade, or invest in rental property, the early months of 2026 present a window of opportunity characterized by improved inventory, stabilizing rates, and realistic expectations on all sides of the transaction.

The key to success? Work with experienced local real estate professionals who understand these nuanced market conditions and can help you navigate the opportunities ahead. The wild ride of 2021-2022 is behind us—what lies ahead is a market that rewards preparation, patience, and strategic thinking.

Data compiled from NC Realtors Association, Georgia Association of Realtors, Redfin, Houzeo, First Multiple Listing Service (FMLS), and various regional MLS sources. Market conditions can vary significantly by specific location, property type, and price point. Consult with local real estate professionals for neighborhood-specific guidance.