Residential real estate has been booming in 2021 due to low mortgage rates and new consumer moving patterns prompted by the pandemic. Some markets, including North Carolina, have seen a staggering shift in trends.
We're taking a closer look at what’s happening in the Tar Heel State, as well as how investors, agents, and brokers can capitalize on these opportunities.
Why Is North Carolina a Hot Market Right Now?
With its southeastern location overlooking the Atlantic Ocean, there’s a lot to love about North Carolina. Currently, the state is enjoying greater demand than ever before, namely due to factors such as property values, job growth, coronavirus recovery, and other favorable economic conditions.
Cities within North Carolina are frequently named among the best in the country, while global tech giants such as Apple and Google have decided to move some of their operations to the state’s famous Research Triangle Park, which aims to be another Silicon Valley.
Last year, COVID-19 prompted large numbers of people to leave densely populated cities in states such as New York and New Jersey. With concerns about virus transmission, as well as a new ability to work remotely, North Carolina’s affordability, smaller population, and high liveability suddenly appealed to many.
The average price of a home in North Carolina is $254,000, for example, which is significantly lower than New York’s average of $800,000, as well as New Jersey’s median house price of $385,000.
These trends are greatly contributing to North Carolina’s fierce demand, while low mortgage interest rates and a shortage of homes continue to fuel the North Carolina real estate market and drive up housing prices. This shortage of available housing coupled with high demand means it’s a seller’s market, with homes staying on the market for a short time and often going for more than asking price.
As a result, if homeowners or investors are looking to sell their North Carolina real estate, now is the time, as the state’s lowest inventory level in 17 years is driving buyers into bidding wars.
North Carolina’s Real Estate Growth
Home values in the Tar Heel State have increased by 17.4% in the past 12 months and will continue to rise in the next year. The Charlotte-Concord-Gastonia metro area has done exceedingly well — with home values up 20.5% over the past year and predictions calling for a further increase of 14.7% in 2022.
According to recent data, high-growth population areas within North Carolina include Concord, with an average growth rate of 3.51%, and Raleigh, which has experienced growth of 2.80%.
Real estate experts also highlight Durham, Wilmington, Asheville, and Greensboro as places within North Carolina to consider for investment opportunities. Their large populations of renters, property diversity, and stable growth all point to a high potential return on investment.
Use Analytical Tools To Pinpoint the Best Opportunities
Whether you’re interested in investing, flipping, new home sales, or rentals, you can use PropStream's analytical tools to pinpoint the best opportunities within North Carolina for your needs.
The heat map and estimated value features identify suburbs or other areas that are up and coming. You can then use the draw feature to zero in on properties, run comparables, and filter stack using over 120 filters to find your next off-market investment or listing.
PropStream also provides financial and situational information for off-market and distressed properties, helping you to discover homes in pre-foreclosure due to divorce filings, tax liens, or bankruptcy. Many real estate agents comment that PropStream is the fastest and simplest way to identify off-market properties likely to sell, thus giving them a leg-up on the competition before it’s too late. In a hot market like North Carolina, that extra edge is invaluable.
The Future of the North Carolina Real Estate Market
North Carolina is one of the hottest property markets in the U.S. right now, and experts don’t expect it to slow down any time soon — particularly while material shortages and low rates of newly built homes continue.
Surveys in early 2020 projected average home values in North Carolina to reach $350,000 by 2030, however more recent data trends suggest houses in the state will hit that mark by 2026, making it a goldmine for those looking to invest in the area.
To take full advantage of North Carolina’s current hot market, make sure you're on top of the trends and equipped with the right tools to get ahead.
