A In-Depth Study of the Housing Market in North Carolina
North Carolina is a state in the eastern USA, bordered by Virginia in the north and South Carolina in the south. It is the 28th largest state in the country and the 9th most populous.
North Carolina boasts of a low cost of living and high job opportunities. These two together have resulted in an overall rise in the real estate market in the state.
What Are The Trends of North Carolina Housing
As in most states in the USA, the housing market is diverse and has a lot to offer. Investors, buyers, and sellers can choose from busy urban areas to calm and serene rural locations.
The North Carolina real estate market is a popular destination for investment for people like you, who are seeking a balance between career opportunities, quality of life, and a relatively affordable cost of living. It supports a good work-life balance which is needed in today’s hustling work front.
To give you an overview of the real estate housing market in North Carolina, let’s discuss the economic factors, population growth, affordability, and urban centers that are prevailing here.
- When we talk about a robust and diverse economy with strong sectors, the real estate market in North Carolina first pops up before the eyes. The major economic sectors or technological sectors, healthcare, finance, and manufacturing contribute the most to its economy. This strong economic full attracts a study influx of residents and therefore increases the demand for real estate here.
- North Carolina has seen a combination of natural increase and migration in terms of population growth in the last decade. Naturally, with population growth, there will be an increased demand in the real estate market of North Carolina which has now become an attractive destination for real estate professionals.
- The real estate market in North Carolina is relatively affordable as compared to other states such as California and Texas. Therefore, it is a major factor in drawing in interested investors to establish their roots in the state.
- Put the upcoming urban centers in the state. It has attracted employment opportunities for people offering cultural amenities and a vibrant lifestyle. This has made the North Carolina real estate market competitive.
These market trends bring one important facet to the surface and that is, it pays to be a real estate agent in North Carolina. The rising housing market requires more salespersons to ensure that buyers and sellers of real estate in the state get a fair deal.
So, how to get a North Carolina real estate license? There are several prerequisites to fulfill such as being at least 18 years old and being an American citizen. Further, you must complete the North Carolina real estate license course online of 75 hours and pass the licensing exam. Only then will you be eligible for a real estate license in North Carolina.
Now, let us come back to the topic of the North Carolina real estate market.
Factors influencing the North Carolina housing market
There are not many factors that influence the dynamics and operation of the North Carolina housing market.
- Employment Opportunities and Economic Growth and job market: Any housing market depends on rising job openings and the economic growth of a state. North Carolina is no exception as there is a rising demand for housing in the state based on the increase in these two factors. Lately, the state has witnessed exponential growth in the manufacturing, healthcare, and the infrastructure sector.
- Rising infrastructure facilities: North Carolina has one of the best infrastructure setup in the country with excellent transportation systems and highways to match. This draws in people from other places, leading to a rising demand for housing.
- Policies and regulations governing the housing market: Government policies play a great part in the growth of housing markets. Rise or fall in interest rates impact mortgage affordability. Additionally, the North Carolina government is very pro-active in taking measures that positively influence the housing market in the state.
Real Estate Market Data of North Carolina
Data shows that the North Carolina real estate market was up by 4.3% in October 2023 as compared to the same month last year. However, the number of homes sold during the same period was down 12.3%.
Are the prices falling or increasing?
It is safe to say that the home prices are not dropping anytime soon in North Carolina. The prices were up by 3.9% in September 2023 and its median sale price rose to 4.4%.
Current trends and statistics in the North Carolina real estate market
The current trends in the North Carolina real estate market show that the home prices will rise by 2 to 3% but it will not affect the number of homes that will go up for sale anytime soon. The demand is expected to rise continually.
Ranking top cities of North Carolina for investment
Out of the top 25 spots, four sports are secured by the state's best real estate cities that are Cary, Durham, Raleigh, and Charlotte. As per the recent National report analyzing the nation's real estate markets- balancing prices, sales rate, and affordability in 300 cities nationwide, these cities are the top destinations for real estate investments.
The state has many attractive features that boast of both Beach and mountain regions. According to recent data, North Carolina is one of the top destinations in America for those who are thinking of relocating.
Statistically speaking, the report shows that Cary is the best in North Carolina ranking 4th overall. Then came Durham at place 7, Raleigh at number 14, and Charlotte at number 23 overall.
These are unarguably the best real estate markets in North Carolina.
National Real Estate Trends and the North Carolina Market
If you check out North Carolina’s median home sale price as of February 2023, you will find that it is $340,000. When compared with the national average sale price, it is still 6.33% below. The national average price for a home is around $363,000.
Projections of the Real Estate Market in North Carolina
- If you consider the above information, the North Carolina homes will continue to sell at eye-popping prices.
- The new home construction will increase as home builders will offer concessions to attract buyers.
- The mortgage interest rates will love it by the latter half of 2024. The rates are predicted to remain above 6% but are expected to stabilize.
- As the interest rates are expected to remain at a reasonable rate, it will attract several home buyers that were averted by historically high interest rates earlier this year.
- Home prices are expected to rise continually until the low-supply high-demand, dynamic changes.
These are the expected market forecast for the year 2024.
Anticipated changes in property values in the coming years
Over the past few years, construction activities in North Carolina have seen a dramatic fall from 26.4% to around 6%. This lack of availability of housing units has led to a shortage in housing. Thus the state has been unable to meet the demands of people drawn to the state due to growing employment options and this has resulted in increased costs of housing.
However, despite the setbacks, the rise in housing costs has not been as steep as in other states in the USA.
The growth of the real estate market of North Carolina is dependent mainly on select cities like Charlotte and Raleigh, which account for more than 10% of all real estate transactions in the state. Therefore, there is hope that the new construction and development in this area will increase the demand for housing.
What are the Facets that Influence the Real Estate Market in North Carolina
The real estate market is pretty dynamic and prone to change. There are many factors which are discussed below that help in influencing the forecast trends in North Carolina real estate. These factors have the potential to shift and change trains positively or negatively depending upon the timing and the intensity they come with.
- Economic factors: these factors are the most influential in steering the real estate market wheel.
- Immigration: if there is an influx of immigration from the population, it will act as a key driver in increasing the housing demand in the state.
- Technological advancements: Technology is one factor that will continue to shape the future of real estate. It has revolutionized the way real estate is managed and investment is done in properties. You must stay ahead in this tech-driven era to get success in the real estate sector.
- Government policies and regulations: If the policies are aimed at attracting new investments, the real estate market will be positively impacted. If there is overpopulation, and the government thinks that there is too much on its plate, then it may flow policies that do not support and our unfavorable for real estate investments.
When Should You Invest in a North Carolina Housing Unit
If you want to buy a house in North Carolina, studies show that the ideal time to do so is between September and December. Why? Because during this time you can take good advantage of offers that are floated for home buyers.
However, you can invest in a house in the state whenever your finances permit you to do so.
Lucrative deals are also available in November, April, and August as these months see discounted prices, new listings, and competitive prices, respectively.
Here is a list of the average median price of homes for the above-mentioned months.
1. November- $348,000
2. April- $361,000
3. August- $367,000
Does Seasonality Have a Bearing on the North Carolina Housing Market?
According to researchers, seasonality also affects majorly the cost of housing in North Carolina much to our surprise. However, the best time to buy a house in North Carolina depends on your convenience and when finance is available to you.
The analysis of seasonality is given below covering the four seasons of the year:
- Spring: it is the most viable season because people are more excited and optimistic and the market runs great. However, because of this, the market can get crowded.
- Summer: in this season, several properties get listed. However, it has become very highly competitive.
- Autumn: Autumn sees a frenzy to buy houses everyone is looking to close on a deal before the school year begins.
- Winters: in this season, most houses are picked off the market. It is very hard to conduct an inspection in such harsh weather but still, people go all out and pull houses off the market.
In conclusion, if you are monitoring home values and are actively looking to buy a house, the best time to buy a house is when you can afford it. Explode, all your financing options to take advantage of low-interest loans. If you have a good credit score and not much debt. The market functions in funny ways therefore, you must not look at attempting to time the market.