As of April 26, the state’s 90-day average number of active single-family listings was 19,399. data from Altos Research. Although this is an increase from the record low of 7,336 listings recorded in late April 2022, the number of listings was 20,000 in early May 2019, about a year before the start of the COVID-19 pandemic. This is still significantly lower than 9,951 cases.
Regarding the existing home market, agents say the lack of inventory is leading to a rate lock, as homeowners with mortgage rates below 5% are reluctant to waive their rates unless major life changes require them to move. It is said that this is due to the effect.
“If a seller who refinanced a home has a 2% interest rate, why would they buy another home at a 7% or even 6.5% interest rate?” Robert Cavindera Burlington-based broker keller williams central.
“It’s a difficult conversation to have with customers, but basically anyone who has bought a home in the last three to four years has equity. If you try to capitalize and move, it doesn’t really go up. They move more laterally and pay more for that property.”
In addition to a lack of existing home inventory, North Carolina is also struggling to increase the supply of new single-family homes.
“We’re doing a lot of new construction. There are cranes everywhere you look, but the problem is the type of inventory that’s being created,” Alston said. “There are a lot of apartment complexes and apartment buildings, but there aren’t a lot of single-family buildings. And when they are, they’re often located quite far from the city or are custom-built $2 million homes.” . “
CEO Andrea Bushnell said: real estate agent in north carolinasaid the problem is not limited to the Charlotte area.
“I was talking the other day with a broker who is bringing two new single-family communities online,” she said. “One of them has 11 lots, each priced at over $800,000, and one has nine homes, each priced from $3.5 million. ”
Because of this, Bushnell said that instead of the industry group working with policymakers to ensure that about 20% of the housing in the region meets affordable housing standards, developers He said he is working on legislation that would provide some exemptions from local restrictions.
“Last year didn’t work out, but we’re going to keep trying,” Bushnell said. “I think it will bring about a lot of development. I think builders will be happy to get out of some of the regulations they have to face, and it will allow more consumers to enter the market. Because it becomes.”
Compounding the problems created by the state’s inventory shortages is the continued influx of out-of-state buyers into North Carolina.according to united van lines‘2023 National moving company surveyNorth Carolina ranks sixth among states with the most inbound trips, with 60.1% of trips being inbound compared to 39.9% outbound.
The top reasons immigrants cited for moving to the state were family (27.2%) and work (24.8%). moreover, analysis By United Van Lines Data Analysts Jiro Two North Carolina cities, Charlotte and Raleigh, were found to be among the top five U.S. cities with the highest net immigration in 2023.
“We still do a lot of relocation business,” Alston said. “We receive numerous inquiries every day from people all over the country who want to come to town and look at different areas and look for properties.”
Local agents say this demand, coupled with a lack of inventory, has led to ongoing bidding wars, but negotiations are not as intense as they were during the peak of the post-pandemic housing market.
“If the house is clean and the price is right, you are very likely to get multiple offers, but we are a long way from the days of 2022 where you will get seven or eight offers. We’ll actually create a spreadsheet to help with that.”The seller will review all offers and terms that are included in the deal,” said Phil Misiagno, a Hampstead-based managing broker. Told. Coldwell Banker Seacoast Advantage.
“But for now, as the agent in charge, I expect to receive one or two offers quickly each weekend if the home is priced right and move-in ready.”
Mishagno added that if the home is priced low and in good condition, you’ll definitely receive multiple offers.
Home sellers may not be getting as many offers on their properties, but home prices continue to accelerate in many markets. Statewide, the average 90-day list price was $403,590 as of April 26, according to data from Altos Research, down from a peak of $436,365 in late July 2023. , still well above the May 2019 level of $329,900.
In hot metropolitan areas, Greensboro High Point and Laurie Cary, the 90-day average median list price jumped to $334,900 and $474,900, respectively, at the end of April. By comparison, the median list price in early May 2019 was $275,000 and $389,990, respectively, according to data from Altos Research.
“Greensboro is one of the fastest growing cities in North Carolina, with job growth of 3.2 percent over the past year.” melissa grierbroker of Berkshire Hathaway Home Services Yost & Little Realty. “This influx of new residents is increasing demand for housing.”
Heading into the summer, real estate experts across the state are predicting a strong housing market and are hopeful, but not hopeful, of more inventory hitting the market.
“I think it’s going to be a tough spring and summer here,” Alston said. “I don’t think we’ll see any major changes in inventories for at least the next 18 months, and maybe a little longer.
“But I expect it to be a pretty competitive situation here this summer. Usually there’s a bit of a lull in July with the holidays, so I expect that to continue to be the case, but I’m also anticipating some pretty big moves in August and September when they reopen and people decide they can reopen. I can’t wait another year to move.”
While it may be difficult for buyers to find property right now, and interest rates are certainly higher than they were two years ago, Cavinder believes now is a much better time to buy.
“It’s a much easier time to buy now because you can actually negotiate,” Cavinder says. “There are people out there actually doing the repairs listed on the inspection report. There’s an opportunity in the market that hasn’t existed for the past three years.”
