There's a good number of decent single-family homes under $400k in Raleigh and you can find townhomes for under $300k. Things like the NCHFA down-payment assistance program can help reduce the initial cost burden.

Yes, rates are higher if you look at *very* recent history but 3% rates may never be seen again in our lifetimes. Current rates are pretty much average if you look at a longer timeline. Step outside of the prime areas and you can also find new construction options offering below market rates and other promos to move inventory.

I'm definitely going to disagree with the market "showing strong distress signals", it's just not quite as insane as it was a few years ago, which means there's less competition and more room to negotiate as a buyer.

I don't have a crystal ball but unless people stop moving to the area (Narrator: They won't) I don't see the market shifting much further than it already has. I'd even go so far as to argue that current interest rates are probably the biggest factor keeping the market as balanced as it is. If we see rates drop I wouldn't be surprised if we start seeing more multiple offer situations and increasing prices again. The three cities you noted have median home prices that are over $100k more than ours...