The 90-day average number of actively listed single-family homes statewide as of April 26 was 19,399, according to the data. altos research corp.. While this number is higher than the record low of 7,336 listings set in late April 2022, it is still well below the 29,951 listings in early May 2019, a year before the COVID-19 pandemic struck.
In the existing home market, agents say the lack of inventory is due to the rate lock-in effect, where homeowners with mortgages of 5 percent or less are reluctant to give up their interest rates unless a major life change necessitates a move.
“There are sellers who refinanced their homes at 2 percent, so why would they buy another house at 7 percent or even 6.5 percent?” said Burlington agent Robert Cavender. Keller Williams Center.
“It’s challenging to have conversations with clients, but basically if everyone bought their home in the last three or four years, they have equity. But even if they want to leverage that to take action, As prices go up, they don’t really go up. They move sideways more and pay more for the property.
In addition to a lack of existing housing inventory, North Carolina is also working to increase the supply of new single-family homes.
“We have a lot of new construction going on. Cranes are everywhere, but the problem is the type of inventory that is being created,” Alston said. “You have a lot of apartment complexes and multifamily units, but there’s not that much single-family construction, and when there is, it’s often far out of the city, or it’s a $2 million custom home. Up.”
Andrea Bushnell Chief Executive Officer North Carolina real estate agentssaid the problem isn’t limited to the Charlotte area.
“I was talking to a broker the other day and he had two new single-family communities coming online,” she said. “One has 11 lots, each of which is over $800,000, and the other has nine homes starting at $3.5 million.”
As a result, Bushnell said trade groups are working with policymakers on legislation that would allow developers some break in local regulations in exchange for ensuring that about 20% of homes in a community meet affordable housing pricing standards.
“It didn’t make any progress last year, but we’re going to keep trying,” Bushnell said. “We think this will bring a lot of development because builders will be happy to be able to get away from some of the regulations they have to deal with, but it will also allow more consumers to enter the market.”
Compounding the problems caused by the state’s lack of inventory, out-of-state buyers are still flocking to North Carolina.according to United Trucking CompanyAccording to the 2023 National Movers Study, North Carolina ranks sixth for inbound moves, with 60.1% of moves being inbound and 39.9% being outbound.
Movers cited family (27.2%) and work (24.8%) as their top reasons for moving to the state.Additionally, data from United Van Lines was analyzed Zillo Two North Carolina cities, Charlotte and Raleigh, are among the U.S. metropolitan areas with the highest net immigration inflows in 2023, the study found.
“We still have a lot of moving business happening,” Alston said. “We get multiple inquiries every day from people all over the country who come into town and want to look at some different areas and start looking for properties.”
All this demand, coupled with a shortage of inventory, continues to spark bidding wars, but negotiations are not as intense as they were at the peak of the post-pandemic housing market, local agents said.
“If the house is clean and the price is right, there’s a good chance there will be multiple offers, but it won’t be like in 2022, when you’ll get seven or eight offers, and we’ll actually create a spreadsheet to help sellers look at it. All offers and terms included in the transaction. Coldwell Banker Shores Advantage.
“But now, as a responsible agent, every weekend I expect to get one or two offers right away if the house is priced right and is move-in ready.”
Misciagno added that if the home is priced lower and in good condition, there’s no doubt they’ll receive multiple offers.
While home sellers may not be getting as many offers on their properties, home prices continue to rise in many markets. Statewide, the 90-day average list price as of April 26 was $403,590, down from a peak of $436,365 in late July 2023 but still well above May 2019 levels, according to Altos Research. $329,900.
In popular metro areas such as Greensboro-High Point and Raleigh-Cary, the 90-day average median list price jumped to $334,900 and $474,900, respectively, in late April. By comparison, the median prices in early May 2019 were $275,000 and $389,990, respectively, according to Altos Research.
“Greensboro is one of the fastest-growing cities in North Carolina, with job growth of 3.2 percent over the past year,” said real estate agent Melissa Greer. Yorkshire Hathaway Home Services Yost & Little Realty. “The influx of new residents is driving up demand for housing.”
Looking ahead to the summer, real estate professionals across the state expect the housing market to remain strong, and while they hope to see more inventory come to the market, they are not hopeful.
“I think the spring and summer here are going to stay tight,” Alston said. “I don’t think we’re going to see significant changes in inventories for at least the next 18 months, and probably a little longer.
“But I expect it to be very competitive here this summer. We usually have a little bit of a lull in July during the holidays, so I expect that to still be the case, but I also expect there to be a pretty big push in August and September, that When schools reopened, people decided they didn’t want to wait another year before moving.
While it may be difficult for buyers to find properties now, and interest rates are certainly higher than they were two years ago, Cavender believes now is a better time to buy.
“It’s easier to buy now because you can actually negotiate,” Kawinder said. “People are actually making repairs on conditions found in inspection reports. There are opportunities in the market that haven’t been available in the past three years.
