Wilmington, North Carolina, is a coastal city with a vibrant economy and a growing population. The Wilmington housing market has been strong in recent years, with home prices rising steadily.
How is the Wilmington housing market doing currently? According to Movoto, the median list price of homes in Wilmington, NC was $439,000 in January 2024, compared to $469,999 in 2023. Wilmington, NC, is a seller's market, which indicates that more people were looking to buy than available homes.
Several factors contribute to the strength of the housing market in Wilmington:
- Attractive Location: Wilmington is a sought-after destination for retirees and second-home buyers, enticed by its warm climate, stunning beaches, and historic downtown area.
- Economic Growth: The local economy is thriving, resulting in the creation of new jobs across various industries.
- Limited Supply: A shortage of available homes is exerting upward pressure on prices, intensifying the competition among buyers.
Current Wilmington Housing Market Trends
How is the Housing Market Doing Today?
The Wilmington housing market, as of December 2023, showcases a robust performance with a notable increase in home prices. According to Redfin, compared to the previous year, home prices have surged by 15.2%, reaching a median price of $412K. This spike in prices reflects the city's desirability and attractiveness to potential homebuyers.
However, the market has witnessed a slight slowdown in terms of the number of homes sold. In December of the current year, 127 homes changed hands, marking a decrease from 156 homes sold during the same period last year. Despite this dip, the median sale price in Wilmington remains 5% higher than the national average, highlighting the city's elevated real estate value.
How Competitive is the Wilmington Housing Market?
Wilmington's housing market is undeniably competitive, with homes typically staying on the market for an average of 17 days. This, however, represents a slight increase from the previous year's 15 days, indicating a marginally longer selling period. The median sale price being 5% higher than the national average further contributes to the competitiveness of the market.
Multiple offers are a common occurrence, with some buyers even opting to waive contingencies to secure a property. On average, homes sell for approximately 2% below the listed price, typically going pending in around 21 days. Hot homes, characterized by their desirability, can sell for around the list price and go pending in an impressive 5 days.
Are There Enough Homes for Sale in Wilmington to Meet Buyer Demand?
Despite the competitive nature of the market, there are indications that the supply of homes may be slightly outpaced by the demand. The data reveals that the number of homes sold has experienced a decline, with 127 homes sold in December compared to 156 homes in the previous year. This may suggest a potential gap between the supply and demand for homes in Wilmington.
The sale-to-list price ratio, standing at 97.7% with a year-over-year increase of 0.5 points, further underscores the demand for housing. Additionally, 16.5% of homes are sold above the listed price, showcasing the willingness of buyers to pay a premium for desirable properties.
What is the Future Market Outlook in Wilmington?
Looking ahead, the future market outlook for Wilmington remains optimistic, albeit with some considerations. The city's current desirability, as evidenced by its competitive housing market and higher-than-average median sale price, suggests a continued appeal to potential homebuyers. However, the market may witness shifts in dynamics, influenced by factors such as economic conditions, interest rates, and overall real estate trends.
Wilmington Housing Market Forecast 2024-2025
According to Zillow, the Wilmington housing market has exhibited notable trends in recent times. The average home value in the area stands at $391,106, reflecting a substantial 6.6% increase over the past year. Homes in Wilmington typically go pending in approximately 22 days, showcasing the region's active real estate market. Let's delve into key metrics that provide a deeper insight into the housing dynamics.
For Sale Inventory (January 31, 2024):
643 homes are currently listed for sale in Wilmington as of January 31, 2024. This inventory is a crucial factor influencing market dynamics, affecting both buyers and sellers.
New Listings (January 31, 2024):
In January 2024, 201 new listings entered the Wilmington housing market, contributing to the city's overall inventory and potentially impacting supply and demand dynamics.
Median Sale to List Ratio (December 31, 2023):
The median sale to list ratio in Wilmington, as of December 31, 2023, stands at 0.988, indicating the relationship between the listed and sold prices of homes. A ratio below 1 suggests homes are generally selling for less than their listed prices.
Median Sale Price (December 31, 2023):
As of December 31, 2023, the median sale price for homes in Wilmington is $384,500. This figure reflects the middle point of all home sale prices, providing a benchmark for assessing property values in the area.
Median List Price (January 31, 2024):
The median list price in Wilmington, reported on January 31, 2024, is $417,467. This figure represents the middle point of all current home listings, giving prospective buyers and sellers an idea of the prevailing market conditions.
Percent of Sales Over/Under List Price (December 31, 2023):
Examining sales data from December 31, 2023, reveals that 22.3% of homes in Wilmington were sold for prices exceeding the list price, while 61.4% were sold below the list price. These percentages shed light on the negotiation dynamics within the market.
Wilmington MSA Housing Market Forecast
In terms of the broader market outlook, the Wilmington Metropolitan Statistical Area (MSA) is projected to experience continued growth. According to the forecast for February 29, 2024, the market is anticipated to see a modest increase of 0.3%, followed by a more substantial rise of 1.4% by April 30, 2024. Looking further ahead to January 31, 2025, the forecast suggests a notable 6.4% growth, indicating positive momentum in the Wilmington MSA housing sector.
The Wilmington Metropolitan Statistical Area (MSA) encompasses various counties in the state of North Carolina, serving as an economic and demographic region for comprehensive data analysis. The housing market within this MSA is substantial, with a diverse range of properties contributing to its vibrancy. The counties included in the Wilmington MSA collectively form a robust real estate landscape, attracting both local and potential buyers seeking diverse housing options.
Is it a Buyer's or Seller's Housing Market in Wilmington?
Assessing whether Wilmington's current real estate climate favors buyers or sellers is crucial for making informed decisions. With an average home value increase of 6.6% over the past year, Wilmington leans toward being a Seller's Market. The limited inventory, reflected in the 22 days it takes for homes to go pending, suggests heightened demand, giving sellers an advantageous position in negotiations.
Are Home Prices Dropping in Wilmington?
Contrary to a downward trend, Wilmington has experienced a notable 6.6% increase in average home value over the past year. This rise indicates a healthy and appreciating market, making it evident that home prices are not currently dropping. The demand for homes and the competitive market conditions contribute to the overall stability and growth of property values in the region.
Will the Housing Market Crash in Wilmington?
As of now, there is no indication of a housing market crash in Wilmington. The steady increase in average home value and positive forecast for the Wilmington MSA point towards a resilient real estate market. However, it's essential to monitor market dynamics and external factors that may influence the housing sector. At present, Wilmington's real estate landscape exhibits stability and growth rather than signs of a impending market crash.
Is Now a Good Time to Buy a House in Wilmington?
Considering the current Seller's Market conditions and the upward trajectory of home values, prospective buyers may wonder if it's an opportune moment to make a purchase. While the competitive market poses challenges, the positive forecast for Wilmington's housing market suggests that waiting may result in higher prices. For those with the means to navigate the market dynamics, now could be considered a good time to buy before potential further increases in home prices.
Should You To Invest in Wilmington Real Estate Market?
Wilmington, North Carolina, is not only a picturesque coastal city but also a burgeoning real estate market with a lot to offer investors. Before delving into the reasons to invest in Wilmington real estate, let's start with an overview of the market:
Wilmington's real estate market has experienced consistent growth in recent years. With its beautiful beaches, vibrant culture, and a strong job market, the city attracts both residents and tourists. This influx of people has driven demand for housing, making Wilmington an attractive destination for real estate investors.
The city offers a diverse range of properties, including single-family homes, condominiums, and rental apartments. The market caters to various investment strategies, from long-term rental properties to short-term vacation rentals, providing flexibility for investors.
Now, let's explore the top reasons to invest in Wilmington real estate and potential drawbacks:
Top Reasons to Invest in Wilmington Real Estate
1. Strong Job Market
Wilmington's job market has been steadily growing, particularly in industries like healthcare, education, and technology. A robust job market can lead to increased demand for rental properties, making it an ideal environment for real estate investors.
2. Coastal Appeal
Wilmington's coastal location, with its beautiful beaches and waterways, attracts tourists and retirees alike. This popularity drives demand for vacation rentals and retirement homes, offering a wide range of investment opportunities.
3. Diverse Property Types
Investors can choose from various property types, including historic homes, waterfront properties, and new developments. This diversity allows investors to tailor their portfolios to their preferences and investment goals.
4. Steady Appreciation
Wilmington has seen consistent appreciation in home values over the years. This can lead to long-term wealth accumulation for real estate investors as property values increase.
5. Thriving Tourism Industry
The city's appeal to tourists means a steady stream of potential renters for vacation properties. Wilmington's rich history, cultural events, and entertainment options contribute to a robust tourism industry.
6. Sizable Student Market
Wilmington boasts a sizable student market due to the presence of esteemed educational institutions like the University of North Carolina Wilmington (UNCW). This student population creates a steady demand for rental properties, especially apartments and student housing, offering a reliable source of rental income for investors.
7. Low NC Property Tax Rate
North Carolina has a reputation for having relatively low property tax rates compared to many other states. This favorable tax environment can enhance the profitability of real estate investments in Wilmington, as lower property taxes mean higher potential returns for investors.
Therefore, investing in Wilmington real estate offers various opportunities, driven by the city's strong job market, coastal appeal, and property diversity. However, potential drawbacks, including competition and maintenance costs, should be carefully considered when formulating an investment strategy. Conducting thorough research and seeking advice from local real estate professionals can help investors make informed decisions in this dynamic market.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Wilmington, NC is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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References:
- https://www.movoto.com/wilmington-nc/market-trends/
- https://www.redfin.com/city/29661/MA/Wilmington/housing-market
- https://www.zillow.com/home-values/21320/wilmington-nc/
- https://www.realtor.com/realestateandhomes-search/Wilmington_NC/overview