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Friday, June 09, 2023

North Carolina Real Estate Sales Update: Spring 2023

Real Estate Sales Update in North Carolina

North Carolina Real Estate Sales Update: Spring 2023

As the state’s landscapes flourished with fresh spring flowers and rejuvenating energy, prospective homeowners and investors continued their search for properties across North Carolina. April 2023 coincided with the nationwide trend of new listings and time on the market rising in tandem with median sale prices, but overall sales were down.

Delve into the dynamics of the home sales market in North Carolina during Spring 2023, exploring the key factors driving the surge in demand, the most desirable locations, and the evolving trends shaping the real estate landscape.

Listings are up, but still a seller’s market

Home listings increased month-over-month (MOM) but were down year-over-year (YOY). What gives?

Homes for Sale

Listings have been on a downward trend since 2020, but the dynamics are slightly different this year. Back in April 2020, the 62,401 listings were stalled by the pandemic, with many markets across the nation on a shutdown or pause. Homes lingered on the market as the industry tried to figure out how to keep selling in the wake of social distancing measures and with fears of a recession as unemployment rates skyrocketed.

The economy is in a very different place in April 2023. Unemployment numbers are back to pre-pandemic levels, and social distancing is in the past. But listings are still declining. Instead, home buyers are reluctant to buy when mortgage rates are higher than they’ve been in a decade and when home prices keep rising. Add in inflation, and it’s all making home buying less affordable.

Not only does that slow home buyers’ plans, but current homeowners who don’t need to move are staying in place, preferring their existing mortgages of 2-3% over the 5-7% rates. That restricts the number of new listings coming to market. Price points under $380,000 are especially limited, with the $125K-$250K bracket at a two months supply of homes.

So even though listings are up month-to-month, and the available statewide inventory jumped 16% to 3.17 months, North Carolina is firmly a seller’s market.

Median sale prices are still rising

Median Price Growth

Despite home buying being more expensive and buyers pushing the brakes on their plans, median sale prices are still rising. In April 2023, they were up from the prior month and 4.4% YOY. The median price was $302,549, a dramatic $100,000 increase since 2020.

Until demand moderates or supply increases, the state will likely keep reporting median sale price increases for the near future.

A local look at real estate

Charlotte trending down

In the Charlotte metro, which included Mecklenburg County, plus Gaston, Iredell, Cleveland, and eight other surrounding counties, new listings were down 25% year over year. But in bucking the state trend, median sale prices also declined by 1.1%. Most homes received 97% of their list price compared to 103% a year ago. Days on the market until sale more than doubled to 39 days.

Charlotte had a 1.3 months supply of inventory, so even though new listings were down, inventory is growing. The metro firmly remains a seller’s market with a median sales price of $375,900.

Asheville a seller’s market

Median sales prices increased to $384,250, a 2.2% increase YOY for April. Like most of the state, new listings dropped by 21% in this case. Homes received about 97% of the list price and were on the market 44 days until sale. The Asheville metro had a 1.9 months supply of inventory, which was slight growth over April 2022.

Catawba region stays consistent

Covering Alexander, Burke, Caldwell, and Catawba counties northwest of Charlotte, this more rural part of the state had almost no change in new listings, with a slight 0.7% drop YOY. However, median sale prices rose 6.4% to $266,000. The region posted a 1.6 months supply of inventory.

Raleigh shows high demand

Raleigh’s market statistics showed 650 new listings, adding to an inventory of 259 homes. But competition was high, as most houses were on the market for 16 days. The average sales price was $558K for April 2023.

Triangle prices drop

In the Triangle region, which includes Durham and Chapel Hill, prices decreased by 3.6% to $400K. New listings followed the statewide trend of being down 22.7%. Overall, inventory is on the rise, although it’s still low enough for the region only to have 1.5 months supply of inventory. The days on the market increased to 27 days.

Greensboro still has a low supply

Guilford County, which includes Greensboro, High Point, and surrounding suburbs, had a median sales price gain of 11%, now at $300K as of the fourth quarter of 2022. Still, with new listings down 29%, the region had a 1.3 months’ supply of inventory for single-family homes.

Wilmington shows significant price growth

Data from the Wilmington metro area reported a 13% YOY jump in median sales prices, up to $390,000. Pending sales were also up by about 1.5%, while closed sales and new listings were down.

Buying in North Carolina

Homes in North Carolina

From the bustling urban centers to the tranquil countryside, North Carolina has become a sought-after destination for those seeking a balance between natural beauty, modern amenities, and a high quality of life. By examining the market trends and data, we aim to provide an overview of the current scenario facing buyers and sellers, enabling readers to gain valuable insights that shape their decision-making.

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Preston Guyton

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