North Carolina’s real estate market has been growing in recent years due to its beautiful shorelines and mountains, making it a desirable place to live for many people. Considering the competitive nature of the market, the slight decrease in homes sold above list price, and the increase in homes with price drops, it leans towards a more balanced market.
However, the sale-to-list price ratio remaining high indicates that sellers still have strong negotiation power. The housing market in North Carolina appears resilient, with a positive outlook given the increase in home prices and a relatively stable sales-to-list price ratio. The growing number of newly listed homes also suggests continued activity in the market.
North Carolina Housing Market Overview
How is the Housing Market Doing Currently?
In January 2024, the North Carolina housing market displayed both positive and challenging trends. According to Redfin, home prices experienced a notable increase, rising by 4.8% compared to the previous year, with a median price of $353,300. However, the number of homes sold saw a slight decline, down 0.41% year over year, totaling 8,524 homes sold compared to 8,560 in January of the previous year.
The median days on the market decreased to 49 days, indicating a quicker turnaround for property sales compared to the previous year.
How Competitive is the North Carolina Market?
Despite the overall decrease in the number of homes sold, the market remained competitive, with 18.7% of homes selling above their list price in January 2024. This figure, however, reflects a 1.9% decrease from the previous year. On the flip side, 27.7% of homes experienced price drops, marking an increase of 3.9% from January last year.
The sale-to-list price ratio reached 97.8%, showing a 0.1% improvement year over year, indicating that homes were generally selling close to their listing prices.
Are There Enough Homes for Sale in North Carolina to Meet Buyer Demand?
As of January 2024, there were 38,770 homes for sale in North Carolina, representing a modest 0.2% increase compared to the previous year. The number of newly listed homes, however, experienced a more significant uptick, rising by 10.1% year over year to 11,879. The average months of supply stood at 3 months, indicating a balanced market with a slight decrease from the previous year.
Top 10 Metros in North Carolina with the Fastest Growing Sales Price
- Hendersonville, NC: 44.1%
- Elizabeth City, NC: 38.7%
- Carolina Beach, NC: 31.1%
- Mint Hill, NC: 26.6%
- Asheboro, NC: 22.0%
- Monroe, NC: 20.9%
- Statesville, NC: 20.0%
- Burlington, NC: 17.5%
- Shelby, NC: 17.4%
- Fayetteville, NC: 17.3%
These metros showcase the dynamic growth in sales prices, providing valuable insights into the varied real estate landscapes across different regions in North Carolina.
North Carolina Housing Market Forecast for 2024 and 2025
According to Zillow, as of January 31, 2024, the average home value in North Carolina stands at $318,266, reflecting a 3.7% increase over the past year. The speed at which homes are going pending is noteworthy, with an average of 22 days in the market.
Housing Metrics Explained:
For Sale Inventory:
At the end of January 2024, there were 29,848 homes available for sale in North Carolina. This inventory plays a pivotal role in shaping the dynamics of the real estate market.
New Listings:
During the same period, 7,871 new listings entered the market, showcasing the ongoing activity and potential opportunities for buyers and sellers alike.
Median Sale to List Ratio (December 31, 2023):
The 0.992 median sale to list ratio as of December 31, 2023, provides insights into the pricing dynamics, indicating a close alignment between listing and sale prices.
Median Sale Price (December 31, 2023):
The median sale price in North Carolina, recorded at $305,667 as of December 31, 2023, reflects the midpoint value in the housing market, offering a benchmark for potential buyers and sellers.
Median List Price (January 31, 2024):
As of January 31, 2024, the median list price for homes in North Carolina is $356,667. This figure serves as a key indicator for those contemplating listing their properties.
Percent of Sales Over List Price (December 31, 2023):
Examining the market dynamics, 28.0% of sales in North Carolina surpassed the list price as of December 31, 2023, reflecting the competitive nature of certain segments.
Percent of Sales Under List Price (December 31, 2023):
Conversely, 54.3% of sales in the same period occurred under the list price, providing a nuanced perspective on negotiation trends and buyer behavior in the market.
Are Home Prices Dropping in North Carolina?
As of the latest available data, there is no indication of a widespread drop in home prices in North Carolina. The overall trend reveals a 3.7% increase in the average home value over the past year, pointing towards a market that is experiencing appreciation rather than depreciation. It’s essential to monitor specific regions and stay informed about local market dynamics, as variations can occur at a more granular level.
Is Now a Good Time to Buy a House in North Carolina?
The decision of whether it’s a good time to buy a house depends on various individual factors, including personal financial circumstances, long-term goals, and specific preferences. With the current market conditions, including a 3.7% increase in average home values over the past year, and relatively swift transactions with homes going pending in 22 days, buyers may find opportunities in certain areas. However, it’s crucial to conduct thorough research, consider local market dynamics, and potentially consult with real estate professionals to make an informed decision based on individual needs and priorities.
Top 10 Areas in NC Expected to See the Highest Increases in Home Prices
Sanford, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.3%
- Expected Increase by 30-04-2024: 1.8%
- Anticipated Increase by 31-01-2025: 8.4%
Sanford emerges as a promising area within the state, with a gradual acceleration in home prices throughout the year. The projected increase by 31-01-2025 suggests a notable surge in demand and desirability within this Metropolitan Statistical Area (MSA).
Wilson, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.2%
- Expected Increase by 30-04-2024: 1.7%
- Anticipated Increase by 31-01-2025: 7.5%
Wilson, as another Metropolitan Statistical Area, showcases a positive trajectory in home price increases. The projected growth by 31-01-2025 indicates a substantial uptick, making it an area to watch for those interested in real estate investments.
Lumberton, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.1%
- Expected Increase by 30-04-2024: 2.0%
- Anticipated Increase by 31-01-2025: 7.2%
Lumberton, situated within the Metropolitan Statistical Area classification, displays a steady growth pattern in home prices. The projected increase by 31-01-2025 signifies sustained demand and market appreciation within this region.
Boone, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.1%
- Expected Increase by 30-04-2024: 1.1%
- Anticipated Increase by 31-01-2025: 7.2%
Boone, a part of the Metropolitan Statistical Area category, demonstrates a modest yet consistent rise in home prices. The projected growth by 31-01-2025 indicates sustained interest and potential opportunities for those considering real estate transactions in this area.
Albemarle, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.2%
- Expected Increase by 30-04-2024: 1.4%
- Anticipated Increase by 31-01-2025: 7.1%
Albemarle, within the Metropolitan Statistical Area framework, exhibits a positive trajectory in home price increases. The projected growth by 31-01-2025 underscores the area’s potential for real estate appreciation and investment.
Kill Devil Hills, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.4%
- Expected Increase by 30-04-2024: 1.9%
- Anticipated Increase by 31-01-2025: 7.1%
Kill Devil Hills, located within the Metropolitan Statistical Area, showcases a positive trend in home price increases. The projections highlight a notable surge in demand, making it a potential hotspot for real estate activity throughout 2024.
Laurinburg, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: -0.4%
- Expected Increase by 30-04-2024: 1.0%
- Anticipated Increase by 31-01-2025: 7.0%
Laurinburg, part of the Metropolitan Statistical Area, displays a unique projection with a slight decrease in home prices by 29-02-2024. However, a subsequent positive trajectory is expected, pointing towards a resilient real estate market in the long run.
Brevard, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0%
- Expected Increase by 30-04-2024: 0.9%
- Anticipated Increase by 31-01-2025: 7.0%
Brevard, situated in the Metropolitan Statistical Area, reflects a stable outlook with no change in home prices by 29-02-2024. However, a subsequent increase is anticipated, showcasing a steady and positive trajectory in the real estate market.
Rocky Mount, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.2%
- Expected Increase by 30-04-2024: 1.7%
- Anticipated Increase by 31-01-2025: 6.9%
Rocky Mount, within the Metropolitan Statistical Area category, projects a positive trajectory in home price increases. The expected growth indicates sustained demand and market appreciation, making it an area of interest for potential real estate transactions.
Fayetteville, NC (MSA):
- Base Date: 31-01-2024
- Expected Increase by 29-02-2024: 0.4%
- Expected Increase by 30-04-2024: 1.7%
- Anticipated Increase by 31-01-2025: 6.8%
Fayetteville, situated in the Metropolitan Statistical Area, demonstrates a positive trend in home price increases. The projections suggest a robust real estate market, attracting potential buyers and investors throughout 2024.
Will The North Carolina Housing Market Crash?
As of now, there is no imminent sign of a housing market crash in North Carolina. The steady growth in average home values, coupled with positive projections for specific areas, suggests a resilient market. However, real estate is influenced by various factors, including economic conditions and unforeseen events. Continuous monitoring and staying informed about market trends are essential for a comprehensive understanding of the real estate landscape and its potential future developments.
Market Fundamentals
Several key factors contribute to the current stability of the North Carolina housing market:
- Economic Strength: North Carolina boasts a diverse and growing economy. Major industries such as technology, healthcare, finance, and manufacturing have a strong presence in the state. This economic diversity provides a solid foundation for sustained housing demand.
- Population Growth: The state continues to attract a steady stream of newcomers due to its job opportunities, quality of life, and relatively affordable cost of living compared to other desirable areas. This population growth supports housing demand.
- Supply and Demand Balance: While some areas may experience housing shortages, the overall supply and demand balance in North Carolina remains relatively stable. This equilibrium helps prevent dramatic price fluctuations that could trigger a crash.
<<Read About Charlotte Housing Market Trends>>>
<<Read About Raleigh Housing Market Trends>>>
North Carolina Housing Supply Graph
Data Sources:
- https://www.zillow.com/research/data/
- https://www.zillow.com/nc/home-values/
- https://www.zillow.com/rental-manager/market-trends/nc/
- https://fred.stlouisfed.org/series/ACTLISCOUNC#
- https://www.redfin.com/state/North-Carolina/housing-market
- https://www.rent.com/research/average-rent-price-report/
- https://www.bankrate.com/real-estate/housing-market/north-carolina/
- https://www.propeterra.com/resource-center/charlotte-north-carolina-banking
- https://today.yougov.com/topics/travel/articles-reports/2021/04/13/us-states-ranked-best-worst-according-americans
Leadinglights/Getty Images
When selling a home, most people look to a real estate agent to help with the process. But if you have the time and are willing to put in the effort, you can sell on your own, without a Realtor. This is called “for sale by owner,” or FSBO for short, and it’s relatively common: About 10 percent of home sales were FSBOs in 2021, according to data from the National Association of Realtors.
As is the case in any state, a North Carolina home seller going it alone will save on the cost of a listing agent’s commission. But in exchange, you’ll be responsible for all the tasks a pro real estate agent would typically handle, and the process can be both complex and time-consuming. Here’s more about how to sell by owner in North Carolina.
Selling a house without a Realtor in North Carolina
When you sell a house by owner, everything from determining how much the home is worth to negotiating over contract terms becomes your responsibility. Here are some basic steps to follow to put you in the best position for a successful sale:
First, create your listing
A sale listing requires eye-catching photos, a detailed description and, most of all, an asking price. Pricing your home is one of the most important parts of the FSBO process. You don’t want to list too high and risk pricing yourself out of the market, or too low and lose out on potential profits. Home values can vary greatly within the North Carolina housing market, depending on where in the state you’re located, so be sure to check recent sales of comparable properties in your area — these are called “comps” in real estate parlance — to get an idea of how much similar homes are selling for.
With the proliferation of online house-hunting, you’ll also want professional-quality photographs that make browsers want to stop scrolling and see more of your listing. Include both interior and exterior shots, and pay attention to curb appeal; a mowed lawn and some light landscaping can go a long way toward making a place feel welcoming.
Be sure your listing description hits on all the basic information, like the home’s age, size, number of bedrooms and bathrooms, etc., as well as any unique factors like a swimming pool, mountain views or proximity to the beach. School district info is useful for families, as well, and if your home is in a community that’s run by a homeowners association, you’ll want to include HOA info too.
Next, get your listing seen
The greater the visibility for your listing, the better: Even the most well-crafted listing is of no use if house-hunters can’t find it. You can post your listing on social media sites and share with friends and family, but the most efficient way to get it in front of homebuyers is to make sure it’s listed on the local MLS, or multiple listing service. This is something normally handled by a real estate agent, but there are ways to list a home on the MLS without an agent, if you pay for access. Look into sites like Houzeo, Broker Direct MLS, Flat Fee Realty and Carolina Listing Express, all of which will list FSBO homes for a fee. Some companies also provide marketing services, yard signs and more.
Without an agent, you’ll have to manage the scheduling of buyer showings on your own as well. Keep the property as clean and tidy as possible for last-minute visits or unannounced drop-ins, and use common-sense cautions when letting strangers into your home (especially if you still live there).
Accept an offer and close the sale
With any luck, all of your efforts will result in an offer or two. You may have to negotiate on your price and other deal terms in order to come to an agreement, so be prepared for a bit of haggling. This part can be extremely tricky without a pro by your side, but luckily, the state of North Carolina requires a real estate attorney to oversee a home sale. It’s smart to have your attorney look over the contract and other paperwork too, to be sure it’s legally sound and protects your interests properly. There’s too much money at stake to risk a mistake in the legal documentation.
Required disclosures for North Carolina home sellers
All North Carolina home sellers, FSBO or not, must submit a four-page disclosure statement outlining any problems that might affect the home’s value or safety. This means that if your property has a problem with the roof, you will need to disclose that on your form. If it is part of a homeowners association, you will need to document that, too, which can include submitting a copy of the HOA’s records, financial details and the board’s meeting minutes from the last year.
Do I need a lawyer to sell my house in North Carolina?
Yes. North Carolina is one of many states that requires a real estate attorney to manage a real estate closing. Their main role is to make sure all the documentation is in order before the deal is finalized, but it’s smart to hire one earlier in the process. With no real estate agent to guide you, FSBO sellers can really benefit from a legal expert going over the contract to make sure it’s sound.
Pros and cons of selling a house by owner in North Carolina
There are both benefits and drawbacks to an FSBO home sale in North Carolina.
Pros
- No listing agent commission: As the seller, you will still be responsible for your buyer’s agent’s commission. But not having a listing agent means you save on that agent’s commission. Considering that each agent typically gets around 2.5 or 3 percent of the home’s sale price, that can be a considerable savings.
- Full control and management of sale: When you sell your house yourself, there is no need to worry about another party getting in the way. You can manage the process exactly how you like with complete freedom from start to finish.
Cons
- A lot of work: From crafting listings to coordinating showings to negotiating contracts, real estate agents do a lot to earn their fee. Without one, all that work falls on your shoulders.
- Fewer potential buyers: Agents are also pro marketers, sharing their listings with fellow agents and a wide pool of house-hunters to garner the most possible interest. Not having that kind of support can limit the amount of potential buyers who see your listing.
FAQs
-
Yes. You don’t necessarily need a Realtor to sell your North Carolina home, but if you opt to sell without one, be prepared for the responsibility and work that the process entails — including choosing the right price, creating a listing, marketing it to the right people and negotiating contract terms.
-
Yes, the state of North Carolina requires a real estate attorney to manage all real estate transaction closings. In addition to handling all the closing paperwork — of which there is a lot — it’s smart to have an attorney look over your purchase contract before signing it as well.