North Carolina Housing Market: Prices, Trends, Forecast 2023
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. According to some reports, the state has seen a significant uptick in home prices. However, there are also signs of slowing, suggesting that the red-hot housing market brought on by COVID is now stabilizing. In this blog post, we will delve into the current state of North Carolina’s housing market, what it means for buyers and sellers, and the housing market forecast for 2023.
North Carolina Housing Market Overview
The North Carolina housing market is experiencing what the rest of the country has seen housing-wise, with the red-hot market of the past couple of years experiencing some course-correcting adjustments.
What is the housing market like right now?
According to Redfin, in May 2023, home prices in North Carolina increased by 2.9% compared to the previous year, with a median price of $371,100. However, the number of homes sold decreased by 16.0% year over year, with 14,007 homes sold in May this year compared to 16,677 homes sold in May last year. The median days on the market increased by 8 days compared to the previous year, reaching a total of 32 days.
Median Sale Price
The median sale price of all home types in the United States is currently $371,100.
Top 10 Metros in North Carolina with the Fastest Growing Sales Price
Certain cities in North Carolina have experienced significant growth in sales prices. Here are the top 10 metros with the fastest-growing sales prices:
- Hope Mills, NC: 39.1%
- Kinston, NC: 35.9%
- Greenville, NC: 35.5%
- North Topsail Beach, NC: 33.7%
- Southern Pines, NC: 30.5%
- Belmont, NC: 27.3%
- Half Moon, NC: 25.8%
- Asheboro, NC: 20.8%
- Chapel Hill, NC: 19.0%
- Fayetteville, NC: 17.6%
North-Carolina Housing Supply
Are there enough homes for sale to meet buyer demand? In May 2023, North Carolina had 39,175 homes available for sale, which is a decrease of 7.6% compared to the previous year. The number of newly listed homes also decreased by 25.6% year over year, with 14,742 new listings. The average months of supply remained stable at 2 months.
North-Carolina Housing Demand
How competitive is the market? In May 2023, 34.0% of homes in North Carolina sold below the list price, showing a significant decrease of 25.8 points compared to the previous year. The percentage of homes with price drops increased from 15.0% to 22.9% during the same period. The sale-to-list price ratio experienced a decline of 3.5 points, reaching 99.5%.
Homes Sold Above List Price (All Home Types)
Approximately 34.0% of homes in North Carolina sold above the list price. This indicates a competitive housing market where bidding wars are becoming more common.
North Carolina Housing Market Forecast for 2023-2024
According to Zillow, the housing market in North Carolina has seen steady growth over the past year, with the average home value currently standing at $323,487, reflecting a 4.3% increase compared to the previous year. Additionally, homes in North Carolina go to pending status within an average of 7 days, indicating strong demand in the market.
Forecast for MSAs in North Carolina
Looking ahead, several metropolitan statistical areas (MSAs) in North Carolina are expected to experience positive growth according to the forecasted trends. Here is a breakdown of the projected changes in select regions:
Charlotte, NC: The Charlotte MSA is anticipated to see a 0.4% increase in home values by June 30, 2023. This growth is expected to accelerate further, reaching 1.5% by August 31, 2023, and a significant 7.6% by May 31, 2024.
Raleigh, NC: In the Raleigh MSA, home values are predicted to rise by 0.3% by June 30, 2023. This growth is projected to continue with a forecasted increase of 1.3% by August 31, 2023, and a total growth of 6.3% by May 31, 2024.
Greensboro, NC: The Greensboro MSA is expected to see a 0.5% increase in home values by June 30, 2023. This growth is likely to continue at a steady pace, reaching 1.6% by August 31, 2023, and a cumulative growth of 7.1% by May 31, 2024.
Winston, NC: The Winston MSA is forecasted to experience a significant rise in home values, with a projected increase of 0.8% by June 30, 2023. This growth is expected to continue with a 2.2% increase by August 31, 2023, and a total growth of 8.5% by May 31, 2024.
Durham, NC: In the Durham MSA, home values are expected to rise by 0.6% by June 30, 2023. This growth is anticipated to continue with a forecasted increase of 1.6% by August 31, 2023, and a cumulative growth of 6.9% by May 31, 2024.
These projections indicate a positive outlook for the housing market in North Carolina, with various MSAs expected to experience growth in home values over the forecasted period. It’s important to note that market conditions may vary, and these forecasts are subject to change based on various economic factors and regional dynamics.
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