The North Carolina housing market is moderating due to higher interest rates. While prices are still rising, home sales have taken an impact. In December 2022, the typical home in the state of North Carolina was valued at $329,634. That’s a 15.7% increase year-over-year (YoY). North Carolina home prices may continue to rise over the next twelve months at a very modest pace.
The third quarter of 2023 will see higher home prices in North Carolina than the third quarter of the current year. The metro forecast data released by Zillow in December last year showed that out of 37 metros in North Carolina, 21 are projected to see home price gains between November 2022 to November 2023. The remaining 16 metros are expected to see a drop in home prices in the range of 0.5 to 4.1%.
How is the North Carolina Housing Market?
In December 2022, there were 35,594 homes for sale in North Carolina, down 5.4% year over year. The number of newly listed homes was 7,125, down 27.8% year over year, according to Redfin. The average months of supply were 2 months, flat year over year.
- Home prices in North Carolina were up 4.9% year-over-year in December.
- The number of homes sold fell 27.8% year over year.
- North Carolina homes were selling for a median price of $344,500.
- There were 10,998 homes sold in December last year, down from 15,127 homes sold a year ago.
- The median days on the market was 42 days, which remained flat year over year.
- 21.8% of homes in North Carolina sold above the list price, down 25.2% year over year.
- There were 23.3% of homes that had price drops, up from 16.4%.
- The sale-to-list price was 98%, down 2.7% year over year.
- If the ratio is above 100%, the home sold for more than the list price.
Are North Carolina Rent Prices Going Up?
Prospective buyers are not the only ones feeling the heat in this property market; tenants have also been scorched. The median rent price in North Carolina for January 2023 is $1,850. This is $50 more than in January 2022, according to Zillow Rentals Data. Rent in North Carolina is 12% lower than the national median.
- The median rent price in North Carolina for January 2023 is $1,850.
- This is $50 more than January 2022 and almost the same as compared to December 2022.
- The median rent in North Carolina is $245 less than the national median.
- There are currently 11,143 rentals available in North Carolina.
Will The North Carolina Housing Market Crash?
We continue to hear rumors of a market crash, but local data does not corroborate this at this time. Even if minor, the monthly figures indicate that the market has begun to cool. In December 2022, home prices in North Carolina rose 4.9% annually. Simultaneously, the number of homes sold decreased by 27.8%, while the number of properties for sale decreased by 5.4%.
Bottom line: We're not seeing any major home price decline or crash in the North Carolina housing market just yet. The present supply of homes in North Carolina still favors sellers. At the end of December, the average months of supply are 2 months. The number of active listings in North Carolina is 24,515, a rise from 14,546 new listings that were added in November 2021 (FRED: updated on Dec 1, 2022).
North Carolina is home to Charlotte, the second-largest financial industry city in the United States after New York. Charlotte is showing no signs of slowing in its quest to be an even more influential financial hub. Charlotte has had substantial growth since the year 2000, despite reasonable delays in the expansion of financial services owing to the 2008 financial crisis. Since 2000, there has been a 47.7% rise in the number of financial industry positions in Charlotte, compared to just an 11.7% increase in the United States as a whole.
<<Read About Charlotte Housing Market Trends>>>
In 2023, North Carolina is predicted to remain a top-ranked state and relocation destination. The flood of new inhabitants will increase competition and limit housing availability, making North Carolina real estate even tighter. According to YouGov, the state is the fifth-best place to live. The state ranks second in terms of business climate, seventh in terms of education, and seventh in terms of fiscal stability.
North Carolina Housing Supply Graph
Real Estate Market Statistics in North Carolina & MSA Forecast for 2023 (November 2022 to November 2023)
The North Carolina metro-level forecast by Zillow for 2023 shows that Boone MSA is expected to see the highest gain of 4.4% in home values. New Bern, NC is expected to see the lowest gain of 0.1% in home values. Home prices will decline the most in Mount Airy MSA (-4.1%) and the least in Henderson (-0.5%).
| North Carolina Housing Statistics | Value |
|---|---|
| Zillow Home Value Index | $329,634 |
| Home Value Change YoY | +15.7% |
| Average Rent Price Change YoY | +2.83% |
| Available Housing Inventory For Sale | 24,515 |
| Is North Carolina a Buyer’s or Seller’s Market | Seller’s Market |
| Charlotte MSA One Year Home Values Forecast | +2.1% |
| Raleigh MSA One Year Home Values Forecast | -1.5% |
| Greensboro MSA One Year Home Values Forecast | +1.7% |
| Durham MSA One Year Home Values Forecast | +1.1% |
| Winston MSA One Year Home Values Forecast | +2.8% |
| Wilmington MSA One Year Home Values Forecast | +1.0% |
| Asheville MSA One Year Home Values Forecast | +1.3% |
<<Read About Raleigh Housing Market Trends>>>
Data Sources:
- https://www.zillow.com/research/data/
- https://www.zillow.com/nc/home-values/
- https://www.zillow.com/rental-manager/market-trends/nc/
- https://fred.stlouisfed.org/series/ACTLISCOUNC#
- https://www.redfin.com/state/North-Carolina/housing-market
- https://www.rent.com/research/average-rent-price-report/
- https://www.propeterra.com/resource-center/charlotte-north-carolina-banking
- https://today.yougov.com/topics/travel/articles-reports/2021/04/13/us-states-ranked-best-worst-according-americans
