The south eastern state of North Carolina is one of the most important states in the East Coast of the country with 100 counties. The capital city of Raleigh along with the largest city of the state, Charlotte are among the top ten metropolitan areas recording the highest growth. The financial activity in the state and the high level of income for the people living in the state means that the median value of a home in the state is a high $151,100.
Current trend
A recent survey (Feb 2016) also found out that the home prices have gone up by almost 4% compared to the last year and the popular realty site Zillow predicts that this trend in NC will further intensify and yet another 3% rise can be expected by the end of this year. There was a slump in the market between 2010 and 2015 after which the North Carolina real estate prices have taken off!
The Good
While the home buyers have suffered with high prices and many foreclosures in the locality, rent has always been on the lesser side when compared to the rest of the US. Rent average is now $1,153 which is up from $973 back in 2011. This could be associated with the fact that North Carolina is often looked upon as a modest place to live in and sustains a market standard for longer without much fluctuations on a month on month basis. Experts often term NC as a market where one can live with a lot of amenities and benefits without paying out of your skin!
The Bad
The mortgage rates in the state follow the national trend with interest rates on a 30 year mortgage starting at 3.9% which is ever so slightly under the nation’s average index of reference. Close to 1% of home owners have negative equity which means that they are paying more than what their house is worth for! The large mortgages cannot be justified if you house value does not appreciate as much as the interest rate of the mortgage.
The Ugly
The median sale price of properties has fallen from $105 to $102 in the last year and this further intensifies the problem and accelerates the cause of negative equity and if home owners try to sell their houses, NC region can take as much as 126 days on average before the house is sold in the market. This is higher than the time taken previously which was around the 90 day mark.
To conclude on the current scenario of the real estate market trend in North Carolina, the people who might have invested in real estate between 2010 and 2015 will be reaping their rewards right now. Though it takes some time to move their houses in this economy, they get a huge profit! While investing in the market seems lucrative, it is wiser to rent out a space and wait for the market to once again normalize and then invest smartly. Most of Realtors in Charlotte NC have risen up their profit.
