• Resales declined 4.5% while inventory grew 6.6% 

The decline was the result of two main factors:

(1) - New residents coming to the area having difficulty selling their homes in the markets they are coming from 

(2) - Incentives being offered by builders of new homes. 

Conventional wisdom says that current interest rates also impacted the market.  Interest rates have only risen slightly over the past month.  When the market was still realtively healthy nationally interest rates had already come well off of their lows and the Triangle market was still enjoying record sales.  By the same token, even at their current highs rates still are well below their historic and/or average levels for the last 8 to 10 years so I ascribe little if any of the decline to it.  Certainly, they do effect some buyers but not to the degree generally given voice to.  However, I suggest that (at least locally) any interest rate impact is offset by the incentives being offered by new home builders and the price reductions being offered by individual home re-sellers.  Our local MLS indicates that in October 37% of all listings had price reductions.  At the same time Days on Market declined on average, year to year, from 82 to 72 days.  As to average home price, they increased to $227,185 an increase of 3.4%.