North Carolina’s real estate sector has witnessed significant growth in recent times. The state’s picturesque shorelines and majestic mountains have made it a sought-after living destination. Recent reports indicate a noticeable increase in home prices in the state.
However, there are indications that the rapid growth, primarily influenced by the COVID-19 pandemic, is beginning to stabilize. This article will provide insights into the current state of the housing market in North Carolina, its implications for buyers and sellers, and the forecast for the year.
Overview of North Carolina’s Housing Market
2023 has seen a deceleration in the North Carolina housing market, following a swift growth phase in 2022. Home prices are rising, but slower. There are more homes for sale and more extended listings.
NC Realtors reported a median home sales price of $302,549 in April 2023, up 4.4% annually. Home sales fell 16% annually. Homes on the market average 36 days, 10 days longer than last year.
Industry experts expect the North Carolina housing market to slow throughout 2023. Home prices may rise 2-3%, but the number of available homes will rise, increasing competition and market durations.
June 2023 Housing Market Indicators
Many are interested in North Carolina’s housing market, especially given its recent changes. Real estate analytics giant Redfin stresses the median sale price as a reliable indicator of market health and affordability. June 2023 figures were telling. The median North Carolina home price was $377,100.
This was 3.2% higher than last year, demonstrating the market’s resilience and growth. Consistent median price growth indicates a robust North Carolina housing market. These numbers provide a clear snapshot of the current scenario for those watching the North Carolina housing market.
Metros with Rapidly Growing Sales Prices
When we talk about the housing market in North Carolina, it’s necessary to pay attention to the significant price growth in certain metros. Places like Holly Ridge, Hope Mills, and Wilson have made it to the list of top 10 metros thanks to their impressive price growth rates. Holly Ridge, in particular, has been a standout performer, registering a whopping 38.6% growth in sales prices.
Such figures are not just numbers; they indicate the soaring demand for homes in these areas. Sellers in these regions are undoubtedly advantageous, while buyers face a more competitive landscape. Understanding these metro-specific trends can offer valuable insights for anyone considering entering the housing market in North Carolina.
Balancing Housing Supply and Demand
One fundamental principle that drives any market, including real estate, is the balance between supply and demand. In June 2023, the data provided exciting insights into this North Carolina housing sector balance. The state had 40,709 homes for sale, down 11.5% from last year. New listings fell 27.4% year-over-year.
What does this mean for typical buyers and sellers? With an average supply duration of 2 months, sellers are winning. Such a limited supply scenario can intensify buyer competition, potentially increasing prices. For those tracking the housing market 2023 North Carolina trends, these supply-demand dynamics offer a clear perspective on the market’s direction and potential challenges.
Several factors can measure the North Carolina housing market’s competitiveness. The selling percentage of homes below the asking price is a crucial indicator. In June 2023, it was 35.1%, down from the year before. The number of homes being discounted has also increased. These trends show how buyer-seller relationships are changing.
For those actively participating in the North Carolina housing market, these metrics offer a clear understanding of what to expect when listing or purchasing a property. It’s evident that buyers have been more discerning, and sellers are adjusting their pricing strategies to meet market demands.
Migration Patterns: Tracking Movement
People’s movement patterns, especially regarding relocating, can offer significant insights into the attractiveness of specific regions. Between May and July 2023, 26% of homebuyers expressed interest in moving to a different metro area. The top destinations on their list? Florida, Texas, South Carolina, North Carolina, and Tennessee.
This data underscores North Carolina’s position as a preferred destination for many. For those considering the housing market in North Carolina, this migration trend can be a valuable indicator of the state’s sustained appeal and the potential demand for homes in the coming months.
Housing Market Forecast for 2023-2024
Zillow is a trusted source for real estate data. Their July 31, 2023 data shows an optimistic North Carolina housing landscape. The state’s average home value rose 2.6% to $320,922 last year. The average time homes sell is eight days, which is even more impressive. This brisk pace indicates a vibrant real estate scene in North Carolina, making it an enticing arena for buyers and sellers.
For anyone keeping tabs on the housing market 2023 North Carolina trends, these figures from Zillow provide a comprehensive overview of the current state and the potential trajectory for the coming year. The data suggests North Carolina remains a hotspot in the real estate sector, with both property values and demand showing positive momentum.
Economic Influences and Lifestyle Benefits
The upward trajectory of the North Carolina housing market is a testament to the state’s thriving economy, diverse job market, and appealing lifestyle options. Urban centers combined with scenic views and a reasonable cost of living have attracted both long-term residents and investors.
The North Carolina housing market displays a balanced mix of supply and demand. As of June 30, 2023, 41.8% of homes sold above their list price, while 41.0% sold below. This balance ensures various properties for different budgets, catering to first-time buyers and experienced investors.
Prospects for MSA Growth
The North Carolina MSA housing market forecast, highlights several regions with promising growth potential. Lumberton, Kinston, North Wilkesboro, and others are anticipated to see significant price growth by 2024, with estimates ranging from 9.4% to 11.1%.
Investment Opportunities and Considerations for Buyers
North Carolina offers a landscape filled with opportunities for those looking to invest in real estate. The projected growth in various MSAs suggests the potential for notable returns on investment in the coming years. Buyers have the advantage of a diverse and reasonably priced housing market across the state.
Is a Market Crash on the Horizon?
The North Carolina housing market is stable for several reasons:
- Technology, healthcare, finance, and manufacturing drive the state’s diverse and growing economy.
- Carolina attracts new residents with its jobs, quality of life, and affordability.
- The balance in housing supply and demand in North Carolina remains relatively stable, preventing drastic price changes that could lead to a market crash.