An Overview of Wilmington NC Real Estate Market 2019
If you struck up casual conversation about investing in North Carolina real estate, the first suggestions will be the largest city in the state, Charlotte. The second suggestion by those that know of it will be the increasingly popular high tech hub in the Research Triangle; that’s centered around Durham. However, smaller housing markets can be a better choice for investors. Let’s learn more about Wilmington before going into the ten great reasons to invest in the Wilmington NC real estate market.
Wilmington, North Carolina is home to over one hundred thousand people. However, the Wilmington housing market is much larger than this. The Wilmington metropolitan area covers several counties and includes over a quarter million people. Let’s look at ten reasons to invest in Wilmington, North Carolina real estate. Let us discuss the latest market trends and find out what are the prospects of Wilmington real estate investment in 2019.
Wilmington NC Real Estate Market Forecasts 2019 & 2020
The median home value in Wilmington is $227,800 on Zillow. Wilmington home values have gone up 6.4% over the past year and Zillow's Wilmington NC real estate market prediction is that the prices will rise 3.5% in 2020. The median list price per square foot in Wilmington is $153, which is lower than the Wilmington Metro average of $154. The median price of homes currently listed in Wilmington is $299,900. The median rent price in Wilmington is $1,450, which is lower than the Wilmington Metro median of $1,500.
According to LittleBigHomes.com, the Wilmington NC real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Wilmington NC real estate market trend prediction is 91%. Accordingly, they estimate that the probability for rising home prices in Wilmington is 91% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Wilmington Housing Market Forecast 2019 – 2021
The Wilmington housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Wilmington housing market trend prediction is 86%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Wilmington is 86% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Wilmington NC Real Estate Market Forecast.
Wilmington NC Real Estate Market Trends
Wilmington real estate market trends indicate an increase of $4,000 (2%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $143, up from $136. Trulia has 1,502 resale and new homes for sale in Wilmington lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Wilmington for Feb 2 to May 1 was $230,000 based on 764 home sales. Average price per square foot for Wilmington was $143, an increase of 5% compared to the same period last year. The median rent per month for apartments in Wilmington for Apr 7 to May 7 was $1,500.
Data by Redfin.com shows that the Wilmington housing market is very competitive. The average sale price of a home in Wilmington was $578K last month, up 1.3% since last year. The average sale price per square foot in Wilmington is $262, down 0.38% since last year. Many homes get multiple offers, some with waived contingencies. Homes in the Wilmington housing market sell for about 1% below list price and go pending in around 22 days. Hot Homes in Wilmington, North Carolina can sell for around list price and go pending in around 8 days.
Wilmington Housing Market Statistics
- Average Listing Price: $230,000 (Trulia)
- Median Rent Per Month: $1,500
- Price Per Sqft: $143
- Median Household Income: $48,625
- Home Owners: 62%
- Single Residents: 42%
- Median Age: 39
- College Educated: 47%
- Transportation: 96% people commute by car
There are 2,551 homes for sale in Wilmington, ranging from $19.9K to $9M on Realtor.com. 164 of which were newly listed within the last week. Additionally, there are 156 Wilmington rental properties, with a range of $580 to $3.6K per month. In February 2019 the housing market in Wilmington, NC was a buyer's market, which means there were roughly more active homes for sale than there were buyers.
The median list price of homes in Wilmington, NC was $269.7K in February 2019, trending down -3.3% year-over-year. The median listing price per square foot was $147. The median sale price was $242,000. Homes in Wilmington, NC sold for 2.3% below asking price on average in February 2019. On average, homes in Wilmington, NC sell after 92 days on the market. The trend for median days on market in Wilmington, NC is flat since last month, and flat since last year.
The median list price in Wilmington, North Carolina is $374,000 on Movoto.com. The median list price in Wilmington is $374,000. The median list price in Wilmington went up 1% from April to May. Wilmington's home resale inventories is 1,009, which increased 8 percent since April 2019. The median list price per square foot in Wilmington is $162. April 2019 was $163. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May.
Wilmington, NC Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Wilmington, NC is $272,583, which indicates that home prices in Wilmington are above the national average for all cities and towns. Single family detached homes are the single most common housing type in Wilmington, accounting for 50.81% of the city's housing units.
Other types of housing that are prevalent in Wilmington include large apartment complexes or high rise apartments ( 27.61%), row houses and other attached homes ( 9.77%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 9.07%).
The most prevalent building size and type in Wilmington are three and four bedroom dwellings, chiefly found in single family detached homes. The city has a mixture of owners and renters, with 44.51% owning and 55.49% renting. Currently, there are 1,222 single family homes for sale in Wilmington, NC on Zillow. These include upcoming potential listings such as properties which are in the stage of Pre-Foreclosure.
Additionally, there are 118 single family homes for rent in Wilmington, NC. Under potential listings, there are about 7 Foreclosed and 47 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a Wilmington's multiple listing service (MLS).
Wilmington, NC Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Wilmington is 0.9%, which is lower than the national value of 1.1%, according to Zillow.com. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Wilmington homeowners underwater on their mortgage is 7.2%.
- Foreclosures in Wilmington = 111 (RealtyTrac)
- Homes for Sale in Wilmington = 68
- Median List Price = $236,135 (23% ⇑ vs Mar 2018)
There are currently 111 properties in Wilmington, NC that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 68. In April 2019, the number of properties that received a foreclosure filing in Wilmington, NC was 12% lower than the previous month and 41% lower than the same time last year.
Home sales for March 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Wilmington, NC was $0. The median sales price of a foreclosure home in Wilmington, NC was $0, or 0% higher than non-distressed home sales.
Wilmington Home Prices And Real Estate Appreciation
Wilmington's real estate appreciation rate has been below the national average for the last ten years. The average annual home appreciation rate in Wilmington during the period has been just 0.24%, which is lower than 70% of US communities.
Over the last year, Wilmington real estate appreciation rates have trailed the rest of the nation. In the last twelve months, Wilmington's appreciation rate has been 5.80%, which is lower than appreciation rates in most communities in the United States. In the latest quarter, the house appreciation rates in Wilmington were at 0.33%, which equates to an annual appreciation rate of 1.34%.
Notably, Wilmington's appreciation real estate rate in the latest quarter is one of the lowest in the U.S. The above statistics on real estate appreciation in Wilmington were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to North Carolina, their data shows that Wilmington's latest annual appreciation rate is lower than 80% of the other cities and towns in North Carolina.
10 Best Neighborhoods In Wilmington For Real Estate Investment
There are 74 schools in Wilmington, NC. There are 30 elementary schools, 14 middle schools, 8 high schools and 22 private & charter schools. There are 56 neighborhoods in Wilmington. Some of the best neighborhoods in or around Wilmington, North Carolina are Murraysville, Masonboro Sound and Landfall.
Greenville Loop has a median listing price of $625K, making it the most expensive neighborhood. Dry Pond – Lake Forest is the most affordable neighborhood, with a median listing price of $124.3K. Here are the 10 best neighborhoods in Wilmington to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
10 Great Reasons For You To Invest in Wilmington Real Estate
Investing in real estate is touted as a great way to become wealthy. Is Wilmington rental property good for investment? Planning to invest in the Wilmington, NC real estate market? Many real estate investors have asked themselves if buying a property in Wilmington is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Wilmington housing market 2019 forecast for answers on why to put resources into this sizzling market. Home prices in Wilmington are predicted to rise by 3.5% in 2020. Here are the top 10 reasons to invest in the Wilmington real estate in 2019.
1. The Diverse Economy
While Wilmington is located off the coast, it has a diverse, stable economy. The city is a regional hub for key services, explaining why the local health network is one of the largest employers. There’s a UNC college campus and community college in the city. More on that later.
There’s a large telecommunications sector. The town is also notable for the large sound stages and special effects tanks that give it a disproportionately large entertainment industry. Nevertheless, unlike investing in Hollywood or the next wannabe, the Wilmington housing market isn’t tied to the rise and fall of one particular industry.
2. The Growing Job Market
The Wilmington NC real estate market is bolstered by the growing job market, since people moving to the area for work drives demand for housing. Businesses are moving here because of the low cost of doing business. Unemployment is less than four percent, attracting people from across the region.
However, the one to two percent job market growth is not so fast that people are flooding in and causing prices in the Wilmington housing market to skyrocket. Instead, homes are appreciating at a steady six to seven percent a year.
3. The Reasonably Affordable Housing Market
The median sales price of homes in the Wilmington NC real estate market was 230,000 dollars. However, this statistic is skewed upward by the high cost of real estate along the beach and the mile long boardwalk. You can find three and four bedroom Wilmington investment properties that rent out for more than 1500 a month for less than 200,000.
4. The Unusual Opportunity for Bargains
Around 5 percent of the U.S. population lives in mobile homes. In North Carolina, it is nearly one in five. The low cost of mobile homes makes them a major source of affordable housing in the Wilmington NC real estate market. However, the cost of land is going up in major metro areas, while there are many mobile home parks being sold for redevelopment.
This is causing rents for mobile home lots and existing mobile homes to go up far faster than the rate of inflation. This makes mobile homes and mobile home parks ideal Wilmington investment properties. You are likely to find park owners eager to escape the hassle of maintenance and dealing with tenants.
Whether you maintain the facility as a place of mobile homes to stay, add campgrounds for RVers, or slowly move people out before selling the real estate to developers is your choice.
5. The Ideal Degree of Growth
We mentioned that the housing market is growing at six to seven percent a year, though job growth is only one to two percent a year. Population growth is slightly higher than job growth, since many people moving here are attending school rather than working, though many graduates stay and start their families here.
This creates gradual but continual pressure on the housing market. You can expect housing prices to continue to rise at five to ten percent a year for the foreseeable future, since there isn’t enough demand for someone to build tall condominium towers or massive new housing developments.
6. The Sizable Student Market
The University of North Carolina at Wilmington is home to more than sixteen thousand students. While some are local, others move to Wilmington and rent if they don’t live in dorms. This creates steady demand for Wilmington investment properties, whether you’re renting out apartments or single-family homes.
The only requirement is that it is within easy commute of the college. However, the town has enough other employers that the value of homes in the Wilmington NC real estate market are not dependent on the rise or fall in public perceptions of the university.
7. The Economics that Keep People Renting
The economics of Wilmington, North Carolina will keep demand for rented-out Wilmington investment properties high. The average household income here is around 50,000 a year, while the average home price is around 260,000. However, home prices are going up at around 6 percent a year while wages are increasing at around 1 percent a year.
This is making home prices less and less affordable for potential home-buyers in the Wilmington NC real estate market. That will drive demand for rental properties. Yet the large student population will compete with long-term residents for rental space, keeping rents high.
Another factor contributing to this large population of renters is the large percentage of the population that works in seasonal or irregular service jobs. They simply can’t take the risk of buying a home. The service sector is the fastest growing part of the job market. Wages in this sector tend to be low, and the wages are kept low because of how many college students compete with long-term residents for these jobs.
8. The Favorable Legal Environment
North Carolina is landlord friendly. There are no pet laws. There are reasonable limits on late fees, while the grace period is five days. There are no notice of entry laws for the state. You can have a fairly large deposit, or you can elect to post a bond instead. The notice to terminate a lease depends on the lease term. In a month-to-month lease, you have to give them one month’s notice.
The only exception is regarding mobile homes. In these cases, you must give them sixty days’ notice. You can evict people rather quickly for nonpayment of rent. You can evict for staying on the property after the lease ends, breaching the lease terms, or criminal activity. In case of criminal activities, eviction proceedings are expedited.
9. The Low Property Tax Rate
North Carolina has a below average effective property tax rate. It came in at about 0.85 percent, while the national average is around 1.1 percent. However, the median home value is lower than the national average, too. This means you pay a lower property tax rate on properties in the more affordable Wilmington housing market. This is why per capital property taxes in North Carolina are tenth lowest in the country.
10. The Low Overall Tax Rate
Another point in favor of Wilmington investment properties over those in hotter markets like Orlando, Florida is the far lower overall tax rate. We’ve already mentioned their low property tax rate. However, they are also notable for having very low income taxes, too.
The top individual income tax rate is 5.25 percent. Per capita tax collections are fifteenth lowest in the country. The state came in twelfth in the list of states with the lowest business taxes, too. This means you’ll have low taxes on Wilmington investment properties whether you’re paying them as an individual or own them through a limited liability corporation.
Wilmington Real Estate Investment
Maybe you have done a bit of real estate investing in Wilmington, North Carolina but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Wilmington real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Wilmington real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Wilmington, NC. The Wilmington real estate investment is stable, slowly growing and not going to see a change in the demand for rental properties any time soon. Several factors contribute to rents being higher than you’d expect given the average wages and property values, increasing the ROI on Wilmington rental properties. Furthermore, there are several niches you can explore to achieve even higher returns, depending on the market you’d like to serve.
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.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Other Best Places To Invest In Real Estate
Another market that we suggest is the housing market in Iowa City. While the Iowa City real estate investment is not overheated or exciting, it offers strong fundamentals like a large rental population relatively immune to rental rates. It will see slow, steady growth in property values and rental rates for years to come.
Investors in hot real estate markets have to wonder if the appreciation and rental increases will stop when a wave of new inventory hits the market. The Iowa City housing market does not face this problem. Instead, demand for existing Iowa City housing market remains steady while the supply is constrained by a lack of construction. Replacing homes that flooded or burned down does not bring new inventory to a slowly growing market.
Another market that we suggest is the housing market in New Orleans, LA. New Orleans real estate investment offers a good combination of short-term renters like students and tourists and a permanent population of renters who cannot afford to buy homes. Geography and market forces limit housing supply, keeping home values and rents stable.
The average home price in the New Orleans housing market is $180,000. That alone makes it affordable compared to other large cities. One of the unique features of New Orleans is how many older homes it has. This does not just create a distinct architectural look and cultural atmosphere.
It means that there are many older homes for sale. For example, in Orleans Parish, roughly two fifths of all homes were built before the 1950s. These homes may be harder to maintain, but they also tend to be affordable and in walkable communities that newer residents desire. It also opens the door to investors buying homes in dire need of repair at a discount, fixing it, and then renting it out.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
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*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Growing job market
Ideal rate of growth
Legal Environment https://www.avail.co/education/laws/north-carolina-landlord-tenant-law
Affordable real estate
Market Data, Trends & Statistics