North Carolina Real Estate Housing Market Trends
A Comprehensive Analysis for 2024
North Carolina’s housing market has been booming over the last few years. As a real estate professional, you need to stay on top of current NC housing market trends to make informed decisions when it comes to your business. Be Happy TC understands how difficult it can be to stay informed - we’re here to help! Explore our in-depth analysis of the North Carolina real estate market with valuable housing market insights that are crucial for your real estate success in 2024.
NC Housing Market Landscape
North Carolina's real estate landscape is as diverse as its geography. From the bustling urban centers of Charlotte and Raleigh to the serene landscapes of the Appalachians and the coastal charm of Wilmington, each area presents unique opportunities and challenges. The state's economy, fueled by sectors like technology, finance, and education, significantly influences real estate demand. Additionally, North Carolina's favorable business climate continues to attract new residents, further bolstering the housing market.
Over the last few years, there have been demographic shifts. North Carolina has become a top place to live for millennials looking for affordable homeownership and retirees seeking a temperate climate. The demographic shift towards transplanted residents has shaped the housing demands in Raleigh, Charlotte, Chapel Hill, and Asheville.
Major North Carolina Housing Markets
For this analysis, we focused on these major NC housing markets:
Charlotte
Raleigh-Durham
Asheville
Wilmington
Each housing market will detail how the market is performing in each area, the greatest opportunities for investment, and the potential forecast within the real estate market. These points are aimed at helping North Carolina real estate agents focus their business efforts in areas that will bring them the most growth potential.
Charlotte, NC Housing Market Trends
Queen City is one of the fastest-growing cities in the United States! It attracts families and young professionals with a spirited cultural scene, incredible schools, and diverse neighborhoods. Some might say that Charlotte’s housing market exploded over the last few years due to its job growth and stable economy. These factors make Charlotte an attractive place to settle down but when coupled with a limited supply of inventory and increased purchasing cost, it also becomes an intensely competitive real estate market.
Statistics:
Average home value: $383,833
1.7% increase in home value within one year
Homes pend for an average of 16 days
Pending sales increased by 7%
Sellers received 96.7% of the original list price
Inventory of homes for sale decreased by 21.6%
Forecast:
Both Buyers and Sellers can gain in Charlotte’s housing market but it’s leaning toward a Seller's market
Charlotte has a thriving economy with a strong job market which still makes it an attractive place to live
When compared with other major cities in the United States, Charlotte’s average home value still makes it an affordable place to live
Interest rates will become more stable which may increase the flow of sellers
The surrounding area around Charlotte is less expensive and a popular place for Charlotte homebuyers to look for homes
Raleigh-Durham Housing Market Trends
According to U.S. News & World Report, Raleigh & Durham rank as the #3 Best Places to Live and #25 in Best Places to Retire categories. These factors undoubtedly help make the area among the more expensive places to live in North Carolina. When adding Chapel Hill into the mix, the Triangle becomes known for its high quality of life and steady job growth, which makes it a compelling place to live for new residents. Still, the Triangle struggles with low inventory supply and higher demand.
Statistics:
Average home value: $408,154
1.8% increase in home value within one year
Homes pend for ~ 20 days
37.3% of homes sell above the list price
44.8% of homes sell below the list price
Inventory of homes for sale decreased by ~9%
Sources: Rocket Homes Durham & Raleigh; & Zillow Durham & Raleigh
Forecast:
The Raleigh-Durham area will likely remain a Seller's market due to low inventory
The Triangle is home to young, friendly, well-educated, and diverse people with a strong sense of community which will continue to make it a hub for new potential residents
When compared with other major cities in the United States, the average home value is still affordable with Raleigh continuing to be a more expensive area to live in
While an average of 36% of homes dropped in price, the rate of homes dropping in price to sell is expected to rise, which is good for buyers
Expect to see a continued influx of homebuyers from Atlanta, Miami, Seattle, San Francisco, and New York which may increase the average home value
Sources: Redfin Durham & Raleigh; Rocket Homes Durham & Raleigh
Asheville Housing Market Trends
Nestled between the Appalachian and Blue Ridge mountains, Asheville has a small-town feel within a progressive and artsy area. Its charm is part of what draws people from Los Angeles and Raleigh to live there but it’s the tourism that helps make it the #3 most expensive city in North Carolina to live in. The Asheville housing market hasn’t been stunted by the below-national average median income, either.
Statistics:
Average home value: $425,631
4.2% increase in home value within one year
32.1% of homes sell above the list price
50.9% of homes sell below the list price
Inventory of homes for sale decreased by 9.6%
Sources: Rocket Homes & Zillow
Forecast:
Asheville is nearing a neutral market - expect to see more homes selling below price, driving the housing market closer to neutral
With the average salary staying stagnant at $45,000 - potential buyers will continue to have sticker shock at the listing price
Anticipate inventory to rise as people leave Asheville for surrounding cities that are more affordable
While inventory may rise, Asheville is an attractive city for people from Miami, Washington DC, and Chicago which will likely increase the average cost of a home
Inventory from the surrounding areas in the Blue Ridge mountains is expected to increase without steep price increases
Sources: Redfin; Rocket Homes
Wilmington Housing Market Trends
For people looking to soak up the sun and enjoy seaside living without the coastal price tag, Wilmington, North Carolina seems like an obvious choice! Wilmington also boasts a cost of living that’s 4% lower than the national average and 6% lower than Raleigh which helps keep the housing market in the affordable range. While the local economy is thriving, it's an attractive location for retirees who are enticed by the warmth of the climate and hospitality.
Statistics:
Average home value in Wilmington: $389,151
6.1% increase in home value within one year
27.4% of homes sell above the list price
57% of homes sell below the list price
Inventory of homes for sale decreased by 7.5%
Sources: Rocket Homes & Zillow
Forecast:
The Wilmington housing market is very competitive and that’s not expected to slow down in 2024
Anticipate a continued high turnover between the listing date and the selling date (currently standing at 18 days!)
Homes will continue to be in high demand with a lower inventory which will keep Wilmington a Seller’s Market
Despite a 6% increase in home value, Wilmington will continue to be a city people from more expensive areas flock to due to its affordability
Sources: Redfin; Rocket Homes
Challenges in the NC Housing Market
Across the U.S., the cost of housing has increased with many locations becoming nearly unaffordable. By contrast, North Carolina boasts some of the cheapest places to live in the United States despite the increase in median home value. However, the housing market has similar challenges as other states including
Reduced inventory
Increased demand
Influx of residents from other states
Affordability in growing urban areas
While these challenges are occurring across the nation, North Carolina is ripe for creating a balanced housing market in hot markets like Charlotte and Raleigh. Given its proximity to the Atlantic, there are concerns about rising insurance costs across the coast due to environmental factors. Real estate agents can help new home buyers navigate homeowners insurance so they get a fair rate.
North Carolina Real Estate Opportunities
The real estate market in North Carolina has a competitive advantage compared with other states. While housing is affordable in most areas, residents in larger cities are moving to smaller communities that are more affordable for them which is easing the pressure caused by a lack of inventory. Continued growth in urban centers and their surrounding suburbs will make North Carolina an attractive place to live for years to come. Additionally, as inventory levels adjust, there’s a greater potential for market stabilization. Real estate agents are encouraged to explore opportunities in less-explored areas of their market that may offer a more balanced lifestyle for potential buyers.
Success Strategies in the North Carolina Housing Market
As a real estate professional, you’re already well-versed in how to do your job well but 2024 is going to require a comprehensive approach that involves staying up-to-date on your market data. Pricing and inventory are going to fluctuate consistently this year and so are demographics. Stay on top of the local trends so you can guide your clients towards up-and-coming or inexpensive areas to live. Additionally, to succeed in your real estate business, you need to stay aware of changes in government policies and regulations which can affect the real estate market and your real estate transactions! Having a transaction coordinator working alongside you can ensure that you don’t miss a beat during the closing process.
The North Carolina real estate market offers a landscape filled with diverse opportunities for agents and that will continue deep into 2024. Understanding these market dynamics and adapting strategies accordingly is key to capitalizing on the burgeoning urban markets or exploring the unique potential of rural and coastal areas. Equipped with these insights, real estate agents in North Carolina are well-positioned to navigate the challenges and seize the opportunities this year.
