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North Carolina is a growing state, with many people flocking to its beautiful shorelines and mountains. The state has grown by more than a million residents since 2010, according to Census data, and Redfin data reveals that home prices are on the uptick. But, while the state’s housing market is expanding, there are also signs of slowing. Here’s what you need to know about the North Carolina housing market.
North Carolina housing market overview
This East Coast state is experiencing much of what the rest of the country has seen housing-wise, with the red-hot market of the past couple years experiencing some course-correcting adjustments.
According to Redfin, about 23 percent of North Carolina homes sold above asking price in February. While that sounds high, it’s down 24.6 points since this time last year, and the overall number of homes sold is down by 15.4 percent year-over-year. This seems to signal that the housing frenzy brought on by COVID is now stabilizing.
Some cities are more competitive than others, though. For instance, homes in Wilmington are selling in 29 days on average, while in Asheville that number jumps to 58 days. Both cities made Bankrate’s top five list of Best Places to Live in North Carolina.
North Carolina housing trends and stats
- Median sale price: $340,300, as of February. That’s up 3.1 percent from last year but still below the national median price of $363,000.
- Sale-to-list ratio: 98.1 percent. Homes typically sell for around 2 percent less than their list price.
- Days on market: 52 days. It takes about 9 days longer for homes to sell now than it did in February 2022.
- Average closing costs: 1.1 percent of the home’s sale price, according to data from ClosingCorp.
- Inventory: 2-month supply in February, with 35,581 homes for sale. This is seller’s market territory — a balanced market typically requires a 5- to 6-month supply of inventory.
Should you buy or sell in the North Carolina housing market?
Whether you’re buying or selling in North Carolina, there are a few things you should know. First of all, much of North Carolina is still currently a seller’s market — meaning sellers have the edge, because there is more buyer demand than there is supply of available homes. But as the market cools off, buyers could gain more leverage.
If you’re a home seller
If you’re selling your home in North Carolina, the good news is that sale prices are up over this time last year, and many homes are still selling above list price. However, homes are taking longer to sell, and increased mortgage rates mean a smaller pool of buyers who can afford the purchase.
A comparative market analysis done by an experienced real estate agent will help you price your home properly. While you can do your own research on how much your house is worth, an experienced agent will be able to give you a price better tailored to your specific area. The right listing price will help you make the most money possible on the deal.
If you’re a homebuyer
If you’re buying a house in North Carolina, you should be aware that most of the state is still fairly competitive. The housing supply is up, but it’s only up 2 percent, and it’s still not enough to meet demand. That means you need to be prepared: Before you go house hunting, get preapproved for a mortgage to show sellers you’re serious, and know how much house you can afford.
Fortunately, the cost of living in North Carolina is lower than the national average. If you’re moving here from a more expensive area, that can give you more buying power. Bankrate’s cost of living calculator can help you further prepare.
Working with an experienced real estate agent will help you find the right house that fits your needs. Agents are knowledgeable of the areas they work in and familiar with inventory, school districts and neighborhood amenities. They know what makes certain areas attractive and will be able to coach you in putting in a solid offer and negotiating if necessary.
North Carolina housing market predictions
Many economists and experts are predicting a housing slowdown nationally. North Carolina seems to be pacing with that trend, with home sales slowing: 15.4 percent fewer homes were sold in February than a year previous, per Redfin. Even formerly super-hot markets like Charlotte are cooling off — the Charlotte market saw a 27 percent year-over-year decrease in sales, with 23.8 percent of homes dropping their prices in February. But will we see a housing market crash in North Carolina? That’s unlikely. The small recent decreases point to the market adjusting, not crashing.
Find a North Carolina real estate agent
The right real estate agent can make a huge difference for both buyers and sellers. Whether you’re looking in Raleigh-Durham, Wilmington or somewhere in-between, having someone on your side that knows the market is crucial. An agent can walk you through the entire real estate process — and help you navigate any bumps along the way. The housing market is complex, especially in shifting economic times, and having an experienced professional in your corner can help you seal the right deal.
If you can lock in a good interest rate, now could be a good time to buy. North Carolina home prices are rising slightly — in February the median was $340,300 — but they’re still lower than the national median. And the number of homes on the market is increasing so you’ll have more options to choose from.
The housing market in North Carolina is following national trends — meaning, it’s cooling off from the red-hot frenzy of the past couple years. The state is largely still a seller’s market, with too few homes to meet buyer demand and many competitive areas. However, sale prices here are lower than the national median, and the state’s overall cost of living is on the low side as well.