Navigating North Carolina’s Thriving Real Estate Market in 2023

Navigating North Carolina's Thriving Real Estate Market in 2023

The real estate market in North Carolina, much like the rest of the country, has been on a rollercoaster ride in recent years. The COVID-19 pandemic initially caused a slowdown in home sales, but the subsequent surge in demand took the market by storm. Let’s explore the current housing market conditions in North Carolina, focusing on key trends and insights that can help both buyers and sellers make informed decisions in 2023.

A Rocket Ship Takeoff

After a brief period of buyer hesitation, the market soared in mid-2020. Buyers were offering well above listing prices, some even making non-refundable due diligence deposits of up to $100,000 to secure their dream homes. While the frenzy has subsided, the real estate landscape remains robust, characterized by low inventory and gradually rising prices.

Why North Carolina Thrives

North Carolina’s real estate market boasts resilience, thanks to its diverse appeal, ranging from beaches to mountains. The state consistently ranks as a top destination for those relocating, with data from moving companies highlighting its popularity. In 2022, North Carolina ranked second as a top inbound state in the Moving Migration Report from North American Moving Services. Raleigh, in particular, secured its position as the top city in the nation for attracting new residents.

The Reluctance to Leave

One significant factor contributing to the state’s housing market strength is that people rarely leave North Carolina once they’ve settled. This, combined with an influx of new residents, contributes to the state’s low housing inventory. The demand probabaly won’t be diminishing any time soon, emphasizing the urgency for buyers not to wait.

Market Performance Metrics

Despite some fluctuations, the overall health of North Carolina’s real estate market can be assessed through several key metrics:

Listings and Sales: While the number of real estate listings statewide dropped by 4.8% year-over-year, home sales in the $500,000 to $2 million price range increased by over 5% in the 12-month period ending in April 2023.

Price Growth: Median sales prices continued their upward trajectory, reaching $302,549 in April 2023, representing a 4.4% annual increase.

Inventory: Although the state’s inventory remains relatively low, the number of homes for sale increased by 16% compared to the previous year.

Fastest-Growing Sales Prices

As of June 2023, several North Carolina communities have witnessed remarkable sales price growth. Despite the state’s still-limited inventory, the number of available homes increased, providing some relief to prospective buyers.

Future Predictions and Buyer-Seller Insights

The North Carolina real estate market is characterized by its buoyancy.  The combination of expanding businesses and an influx of residents suggests that housing demand will remain strong.

In this seller’s market, with only 3.17 months of inventory (well below the balanced market threshold of six months), most homes are selling at or near their asking price. Sellers are receiving on avergae 99.6% of their list price, with some areas even exceeding that figure. Properties are moving swiftly, with a median of just seven days on the market before entering pending status.

The days of frenzied bidding wars appear to be over, and while deep discounts may not be on the horizon, waiting for a substantial price drop may not be a wise strategy. Buyers can take comfort in knowing that, although the current environment may not last forever, it’s unlikely that home prices will experience a significant decline in the near future.

North Carolina’s real estate market remains dynamic and favorable for sellers, with signs of stability and sustained demand. Buyers should act promptly and not bank on substantial price reductions. With the market’s resilient nature, North Carolina continues to be a compelling destination for both new residents and real estate investors.

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