North Carolina Real Estate Trends
Real estate trends in North Carolina for 2022 are indicating that the market is exceptionally hot. Whether you are a seller, buyer or real estate agent in North Carolina, the things that you need to know about real estate trends in North Carolina are shared below.
Increased Demand And Reduced Supply
The demand has been rising for North Carolina real estate over the last few years. As per the census data, the population grew by 111,774 in the period from April 2020 to July 2021. Due to the comparatively low cost of living and comfortable weather, the demand for North Carolina real estate is on the rise. In addition, the interest rates are also low, so the buyers are motivated to buy a home in North Carolina. When the supply side is considered, the inventory of available homes is very low. The reasons for the low supply are:
- Homes do not sit on the market for long before receiving an offer from a buyer
- New constructions are low as the supply chain issues due to the pandemic have made it much more difficult to do construction.
- Seniors in North Carolina are now opting to age in place rather than sell their houses to move to senior care homes.
Dramatic Increase In Prices
The median sales price for real estate in NC was 250,400 dollars in January 2020. Just after two years, the median prices have rocketed to 342,000 dollars. The median sales prices have increased by more than 22% in 2021 alone. The values can stabilize shortly for the following reasons:
- The Federal Reserve has announced its plans to increase interest rates to fight inflation. This can significantly cut down buying power.
- As many home buyers are being priced out of the market, demand is expected to wane.
- As supply chain issues after the pandemic are being addressed, new construction will again be a viable option.
Foreclosures Are Up
Foreclosures are up eight-five percent year over year. But this is not the complete picture. The moratorium on foreclosures was in place until 2021. Therefore, foreclosures were far below the normal levels. The foreclosures are still below the normal levels, even with an increase of 85%. Foreclosures are expected to continue to increase, but they are still low. Therefore, foreclosures are not indicating any trouble in the real estate market in NC.