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 $439,900 in February 2024, compared to $474,900 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.
Wilmington Housing Market Trends in 2024
In February 2024, the housing market in Wilmington showed promising signs of growth, with home prices experiencing a 3.6% increase compared to the previous year. According to Redfin, the median selling price reached $404,000, reflecting a steady upward trajectory. However, this rise in prices was accompanied by a slightly prolonged selling period, with homes staying on the market for an average of 50 days, compared to 29 days in the previous year. Despite this, the number of homes sold in February rose to 138, up from 133 in the preceding year.
Current Market Performance
Wilmington's housing market, while showing positive growth, presents a mixed picture in terms of competitiveness. The median sale price, although 2% below the national average, positions Wilmington as a somewhat competitive market. Homes here typically sell within a reasonable timeframe of 27 days.
Moreover, the market dynamics indicate a scenario where certain properties receive multiple offers, driving up competition. On average, homes sell for approximately 3% below the listing price, going pending in about 27 days. However, some properties, especially those deemed ‘hot,' can command listing prices and go pending within an astonishingly short period of 5 days.
Buyer-Seller Dynamics
The sale-to-list price ratio of 97.1% demonstrates a slight decrease of 0.84 percentage points year-over-year, suggesting a marginally more favorable position for buyers. Additionally, the proportion of homes sold above the listing price decreased by 6.4 percentage points year-over-year, standing at 10.9%.
Migration & Relocation Trends
Examining migration and relocation trends provides valuable insights into the broader real estate landscape of Wilmington. Between December '23 and February '24, 49% of homebuyers in Wilmington expressed an interest in moving out of the area, while 51% preferred to stay within the metropolitan region.
Interestingly, while the majority of homebuyers are local, a small percentage (0.16%) of potential buyers from across the nation are considering relocating to Wilmington. Among these, individuals from Washington showed the highest interest, followed by those from Raleigh and New York.
Market Outlook and Conclusion
The future outlook for Wilmington's housing market appears positive, albeit with considerations for both buyers and sellers. As prices continue to rise, sellers may benefit from the current trend, especially if they position their properties strategically to attract competitive offers. However, buyers can also find opportunities in the market, particularly with a slight easing of competition evidenced by a lower proportion of homes selling above listing price.
Wilmington Housing Market Forecast 2024 and 2025
According to Zillow, the Wilmington housing market is displaying resilience and growth, with the average home value standing at $395,758, reflecting a robust 7.0% increase over the past year. Homes in Wilmington typically go pending in about 21 days, indicative of a market characterized by swift transactions. Delving into specific metrics sheds light on the intricacies of this market.
Key Housing Metrics Explained
For Sale Inventory: As of February 29, 2024, Wilmington had 640 properties available for sale, providing a snapshot of the housing stock available to potential buyers.
New Listings: In February 2024, the market saw 209 new listings, indicating ongoing activity in terms of properties entering the market.
Median Sale to List Ratio: The median sale to list ratio, standing at 0.983 as of January 31, 2024, offers insight into the relationship between listing prices and actual sale prices, a crucial factor for both buyers and sellers to consider.
Median Sale Price: Wilmington's median sale price, recorded at $389,833 as of January 31, 2024, signifies the midpoint of all home sale prices, providing a benchmark for market performance.
Median List Price: The median list price, at $414,967 as of February 29, 2024, indicates the midpoint of all properties listed for sale, offering a glimpse into sellers' expectations.
Percent of Sales Over/Under List Price: Examining the percentages of sales over and under list price, recorded at 18.6% and 65.4% respectively as of January 31, 2024, helps gauge the competitiveness of the market and negotiating power of buyers and sellers.
Wilmington MSA Housing Market Forecast
Looking ahead, the Wilmington Metropolitan Statistical Area (MSA) housing market is poised for continued growth, with forecasts indicating a steady rise in home values. The MSA, encompassing various counties including New Hanover and Pender, represents a sizable housing market within North Carolina.
The forecast, projecting an increase from 0.5% as of March 31, 2024, to 3.2% by February 28, 2025, underscores the region's potential for appreciation and investment opportunities. With its diverse range of properties and attractive amenities, the Wilmington MSA remains an appealing destination for homebuyers and investors alike.
Is Wilmington a Buyer's or Seller's Housing Market?
As of the latest data available, the Wilmington housing market leans towards being a seller's market. With a limited inventory of available homes, coupled with high demand and relatively quick turnaround times for property sales, sellers hold a favorable position in negotiations. Buyers may find themselves competing for desirable properties, leading to potential bidding wars and higher sale prices.
Are Home Prices Dropping in Wilmington?
At present, there are no indications of home prices dropping in the Wilmington housing market. On the contrary, data from Zillow shows a consistent upward trend in home values over the past year, with a 7.0% increase recorded. While market conditions can fluctuate, current trends suggest stability and potential for further appreciation.
Will the Wilmington Housing Market Crash?
Forecasting a housing market crash involves considering numerous factors, including economic conditions, housing supply and demand dynamics, and lending practices, among others. While unforeseen events or economic downturns can impact the real estate market, there are currently no imminent signs of a housing market crash in Wilmington. The market's resilience, coupled with steady demand and manageable inventory levels, suggests a stable outlook in the near term.
Is Now a Good Time to Buy a House in Wilmington?
Determining the ideal time to buy a house depends on individual circumstances, financial readiness, and long-term goals. In the context of the Wilmington housing market, several factors indicate favorable conditions for prospective buyers. While competition exists, low mortgage rates as compared to last year, coupled with a growing economy and steady home value appreciation, present opportunities for those looking to enter the market.
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