North Carolina real estate trends for 2022 are all indicating an exceptionally hot market! In fact, Raleigh and Charlotte both ranked in the top five on Zillow’s list of the hottest real estate markets for 2022.
Whether you’re a buyer, seller, or real estate agent, here’s what you need to know about North Carolina real estate trends for 2022.
High Demand and Low Supply (Still)
North Carolina real estate has been in extremely high demand over the last few years. Census data shows that North Carolina’s population grew by 111,774 from April 2020 to July 2021. A few North Carolina cities even saw their populations increase by over 100%!
North Carolina joins popular states like Texas and Florida in attracting new residents because of the comparatively low cost of living and warm weather. And with interest rates at historic lows, buyers have had extra incentive to purchase a home.
On the supply side, the inventory of homes available is seriously low. The number is homes for sale in February of 2022 was under 20,000 for the entire state. That’s a year-over-year decrease of 31%.
Why so low? There are a few reasons:
Homes don’t sit on the market for long before getting an offer from a buyer.
New construction levels have been low since the Great Recession, and the supply chain issues of the COVID era made it difficult to ramp up construction.
North Carolina seniors are choosing to age in place rather than selling their homes to move to retirement communities.
Dramatic Price Increases (Which Should Stabilize Over the Next Few Years)
In January of 2020, just before the COVID pandemic hit the states, the median sales price in North Carolina was $250,400. Just two years later, the median had skyrocketed to $342,200. In fact, the median sales price jumped by more than 22% in 2021 alone!
We expect to see values stabilize in the near future for a few reasons:
The Federal Reserve has announced plans to raise interest rates to fight inflation, which will reduce buying power.
Demand will naturally wane as many buyers are being priced out of the market.
As post-COVID supply chain issues are addressed, new construction will be a viable option again. This will add more homes to the low supply.
This level of growth is simply unsustainable for much longer.
But, as of March, the price stabilization we’re all expecting hasn’t started yet.
With a growing population and more potential buyers being priced out of the market, rental demand is up. So rent prices are up as well. The median rental rate currently sits around $1,145, up 13.5% compared to last year.
We expect rents to continue increasing for the next few years, albeit at a slowing pace.
Foreclosures Are Up (But Still Comparatively Low)
Foreclosures are up 85% year-over-year. But this attention-grabbing statistic isn’t the whole picture. The COVID-era moratorium on foreclosures was in place until August 2021. So 2021 foreclosures were far below the normal levels. Even with the 85% increase, we’re still below normal foreclosure levels.
Foreclosures will continue to increase, but they’re still low. So they’re not indicating any trouble in the North Carolina real estate market.
How These Trends Impact North Carolina Real Estate Agents
Real estate agents in North Carolina are able to capitalize on several opportunities in today’s market, including:
Working with out-of-state buyers who are relocating to North Carolina
Helping investors find long-term rental properties
Specializing in leasing to help renters find housing
Helping distressed homeowners avoid foreclosure by listing their home for sale (because of the recent value growth, most homeowners will have enough equity to sell rather than suffer a foreclosure)
How to Join This Hot North Carolina Real Estate Market
With a North Carolina real estate license, you can represent local buyers and sellers in their real estate transactions. Real estate agents are able to work flexible schedules, be their own bosses, and enjoy unlimited income potential.
And getting your license is easier than you might think! You don’t need a college degree; you just need to complete a 75-hour real estate course and pass the state exam. With Aceable, you can complete your course online at your own pace. Enroll in your North Carolina real estate course today!