The current median home sale price of $390,100 is rising at just 3.4% YoY. Moreover, homes stay on the market for only 33 days. This indicates that the real estate market in the Sunshine State is competitive.
Additionally, only 13,428 homes were sold in June 2024, down from 15,247 in June 2023. This decline suggests sellers are receiving fewer offers, mainly due to the recent NAR settlement. Concerns about selling prices and agent compensation have contributed to this market sluggishness.
The NAR settlement has removed the buyers’ agent compensation from the MLS. This may drive down home prices further. As a result, buyers will have improved affordability along with low mortgage rates.
Here are some tips for you to sustain in North Carolina’s housing market:
- If You Are a Home Buyer: With an inventory of 50,916 properties and the potential for further price drops, now is a good time to buy your new home. The low interest rates at 6.25%-6.9% are also in your favor. Consider negotiating for seller concessions to further benefit from the purchase.
- If You Are a Home Seller: The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.
So, How is the Real Estate Market in North Carolina?
Balanced!
The number of homes for sale increased by 18.3% in June 2024 compared to the previous year. This is the 6th consecutive month the housing market has witnessed such growth. Single-family homes for sale are up by 17.2%, and condos by 31%.
- Median Days on Market: The median days on market for homes for sale is 33 days, up by 1 to 3 days YoY. This trend suggests an increasing demand in the North Carolina real estate market.
- Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 18.3%. There are 50K homes for sale in North Carolina, with an average supply of 3 months.
- Average Home Prices: The median home price in North Carolina is $390,100. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 98.70%, dropping by 0.94 pt YoY.
- Home Sales: As per June 2024 data, home sales decreased by 14% YoY! Only 13,428 homes were sold, compared to 15,247 last year.
- Average Rent Prices: Rental costs vary statewide. The average rent for an apartment in Charlotte is $1,628, while the one living in The Country pays $1,362. You should check the local rates in your region.
» What is My Home’s Worth in 2024: Find your home’s market value in amid 2024’s current housing trends.
Data Sourced From: Redfin
Why Is North Carolina a Seller’s Market Now?
North Carolina real estate market has balanced inventory of homes for sale. Besides this, a steady increase in median home prices, favors home sellers. Homes spend only 33 days on the market which depicts the competitive market.
- Fewer Days on the Market: Homes are spending only 33 days on the market before going under contract. This is visible in metro cities like Cary and Chapel Hill where the average days on market are between 8 and 9 days.
- Multiple Offers on Homes: Cary and Chapel Hills have got 89 in Redfin’s Compete Score. It means the housing market in North Carolina is very competitive. It shows that many homes get multiple offers, some even sold without contingencies.
- High Sale-To-List Price: The average homes sell for about 1% above list price whereas hot homes sell for about 4% above list price. The average sale-to-list price ratio in Seattle is 101.6%.
- Homes Sell Above List Price: On average, 26.1% homes sell above list prices. However, in June, 28% of homes experienced price drops, compared to 21.9% last year. This trend indicates a gradual shift toward a buyer’s market.
North Carolina Real Estate Market Predictions
Here are the predictions for North Carolina’s housing market in the remaining months of 2024 and 2025:
- Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
- New Home Constructions Will Shoot Up: 33.4% of single-family homes for sale in Q1 were newly built. This rise in home construction will continue due to increased demand from remote workers and favorable mortgage rates.
- Home Prices Will Drop: After a period of sluggish growth and due to NAR settlement, home prices are expected to begin a gradual decline.
- iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.
Bonus Predictions: Buyer Broker Commissions Will Be Zero!
In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:
- Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
- Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
- Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
- Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.
Is the Housing Market in North Carolina Going to Crash?
A housing market crash in North Carolina is unlikely.
Some metros like Sanford, Boone, and Laurinburg expect price growth by at least 4.9% by 2025. This shows the city’s desirability as a residential destination, supported by amenities and infrastructure.
The job market remains robust, with an unemployment rate of just 3.7%. Additionally, the average cost of living in North Carolina is $43,959, significantly lower than the national average of $61,334.
This affordability, combined with strong economic fundamentals, makes a housing market crash in North Carolina unlikely.
2024: Is It a Buyers’ or Sellers’ Market Now?
North Carolina real estate market favors sellers in 2024. (And buyers, too!). The market is expected to lean more in favor of the buyers in the latter half of 2024.
Home prices are rising slowly, and the number of homes for sale has increased by 38.5% YoY. Buyers now have more choices. With mortgage rates around 6.37%, buyers also have more purchasing power.
Consequently, more homeowners are likely to list their homes on North Carolina MLS. The 10.1% increase in new active home listings in North Carolina has brought back home shoppers.
So, whether you are looking for a condo in Cary or a single-family primary home Chapel Hill in North Carolina, you will find your dream home in the coming months.
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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.
Frequently Asked Questions about North Carolina Real Estate Market
When will the housing market crash in North Carolina?
Not for the next few years. North Carolina's housing market will not crash in 2024 and 2025. Despite low housing demand and modest home prices, the market is afloat.
What are the real estate housing market 2024 predictions for North Carolina?
2024 is a balanced market with 3 months of supply and low inventory. Here's our forecast for North Carolina's housing market in 2024: (1) Home buyers will return to the market. (2) Housing inventory will increase. (3) Property prices in will increase. (4) Buyer agent commissions will be zero!
Are home prices dropping in North Carolina?
Not yet! Currently the property prices in North Carolina are increasing at a good rate of 2.3% YoY. However, you can still find the cheapest places to live in North Carolina. You can find the value of your favorite homes on Houzeo's home value estimator.
Is it a good time to buy a house in North Carolina?
Yes! Currently, there are very few buyers in the market compared to the supply of homes in North Carolina. Homes for sales are up by 38.5%. The low mortgage payments have made buying a home affordable. More buyers will return in the second half of 2024, so we'd recommend you buy a house now.
