Home values could drop most in these NC cities, Zillow says. By how much?

It’s no secret that the North Carolina housing market can be tough to navigate, especially for new home buyers, but relief could be coming soon.

After previously forecasting a 0.6% increase in home values, Zillow now anticipates a 1.9% nationwide drop in its latest Home Value and Home Sales Forecast.

Why are home values decreasing?

“The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year’s end,” Zillow said. “With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.”

But data indicates that North Carolina is a seller’s market right now.

According to Bankrate, the best time to sell your home in North Carolina is in May, when homes sell fastest and for the most money.

While finding affordable homes can be a challenge, Zillow predicts that home values in a handful of cities in the state will drop significantly. Here’s what to know.

What does the average NC home cost?

In April, the average home value in North Carolina was $336,483, according to Zillow.

Here is the average home value in some of the state’s major cities:

• Charlotte: $405,421
• Raleigh: $449,756
• Durham: $410,512
• Asheville: $484,190
• Greensboro: $260,665
• Wilmington: $416,708

Where are home values decreasing in NC?

These are the top 10 places in North Carolina where Zillow predicts home values will drop the most between now and April 30, 2026:

1. Goldsboro: 3.3%

2. Forest City: 2.8%

3. Rockingham: 2.8%

4. Roanoke Rapids: 2.4%

5. Shelby: 1.5%

6. Marion: 0.8%

7. Raleigh: 0.6%

8. Henderson: 0.6%

9. Greensboro: 0.5%

10. Asheville: 0.5%

Home prices in Durham are also expected to drop by 0.2% over the next year, but home prices in Charlotte are expected to go up by 0.5% a year from now, according to Zillow.

Where are the cheapest homes in NC?

It’s no coincidence that a few places where home prices are expected to drop over the next year also have the cheapest housing in the state.

Here are the places with the cheapest homes in North Carolina, along with the median home price in each area, according to Mortgage Research Group:

1. Roanoke Rapids: $114,398

2. Rockingham: $124,299

3. Kinston: $141,339

4. Eden: $144,223

5. Clinton: $145,013

6. Lumberton: $150,474

7. Henderson: $176,146

8. Rocky Mount: $185,663

9. Goldsboro: $191,884

10. Shelby: $193,765

Where are the most expensive homes in NC?

While living in the state’s affordable area means mortgage payments around $1,000, you’ll need deep pockets to buy a home in North Carolina’s most affluent communities.

These are the most expensive housing markets in North Carolina, according to Redfin:

1. Highlands: $2,750,000

2. Governors Club: $1,192,500

3. Marvin: $1,171,250

4. Lake Lure: $1,068,000

5. Wrightsville Beach: $987,500

6. Summerfield: $957,250

7. Weddington: $950,000

8. St. James: $950,000

9. Fairview: $833,000

10. Carrboro: $810,000

This story was originally published May 20, 2025 at 4:49 PM with the headline "Home values could drop most in these NC cities, Zillow says. By how much?."

Evan Moore

The Charlotte Observer

Evan Moore is a service journalism reporter for the Charlotte Observer. He grew up in Denver, North Carolina, where he previously worked as a reporter for the Denver Citizen, and is a UNC Charlotte graduate.