North Carolina’s Real Estate Trends in 2022

North Carolina is an East Coast state with stunning Atlantic waters, growing urban centers, and deep green rural environments. It is a significant cultural and economic state, ranking in the top 10 states for population size. Let’s take a look at where North Carolina’s real estate market stands as we move into the late winter period of 2022.

General North Carolina Trends

North Carolina is experiencing what many other markets across the United States are experiencing. That trend is that there is a lack of inventory, which is increasing buyer competition. With demand high and supply low, the market benefits sellers. Buyers compete amongst themselves, and home values increase.

This is reflected in the North Carolina numbers. According to Fortune Builders, the median sales price is $328,168. This is a 19.6% increase year over year, a drastic growth rate that largely surpasses the national average. This is a direct result of a decrease in inventory. The same Fortune Builders report showed that there are currently 16,279 homes for sale in the state. This is a decrease of 42% year over year, a drastic drop in available options for buyers to choose from.

The number of homes can’t keep up with the demand in the state, and it’s leading to an unhealthy market that favors sellers. Until the inventory can keep up with buyer interest, the market will continue to favor sellers.

Image credit: Charlotte NC (Facebook page)

Charlotte’s Hot Market

Charlotte is a major city, North Carolina’s biggest and most economically significant. Charlotte has been a growing real estate market for the past several years. According to a Norada report, 2021 was the eighth-consecutive year where home values grew in the state. The same report showed that the median price of a home in Charlotte grew 15.2% year-over-year, arriving at $345,000 in October of 2021.

However, Charlotte has a major problem when it comes to inventory. While many places are experiencing a housing shortage, Charlotte’s is rather pronounced. In 2021, the supply of homes for sale in the Charlotte Metro Area dropped to its lowest level in 17 years. There is less than a month of inventory left for sale, a dangerously low amount of homes. This means buyers are competing heavily for limited options.

There is significant demand for Charlotte homes in large part due to the economic opportunity in the city. Charlotte is a growing city with many jobs and an unemployment rate below the national average. There is a lot of potential for those looking to live in an emerging market.

Image credit: Charlotte NC (Facebook page)

The Research Triangle’s Emergence

While Charlotte is the biggest market in North Carolina, other major areas have seen a significant amount of buyer interest over the past several years. The research triangle, or the triangle, is an area in North Carolina that includes three of its top universities and the metro area of Raleigh and Durham. Major universities in a town are a great way to have a young, educated demographic, but this area is much more than that.

The triangle is also a tech hub, with offices like IBM, Cisco, Apple, and Google within the area. It is also a red-hot market. According to Redfin, Raleigh set a new record in December of 2021, with a median sales price of $386,000, up over 21% year-over-year. It is a scorching hot market with a lot of buyer interest. Durham, a major area near Raleigh, is also a blazing hot market. Their December median sales price was $388,000, up a whopping 31.3% year over year. This type of drastic surge is new to the area, and the research triangle is certainly an emerging market to keep an eye on.

What Does the Future Hold?

North Carolina’s market is a rapidly growing one. Like much of the United States, inventory is a serious problem making housing prices grow at an unsustainable rate. Still, the cost of living in Charlotte and the research triangle isn’t horrible for big cities compared to the national average. In 2022, we should expect to see the price of homes in North Carolina continue to rise. Until demand drops, which is unlikely, or inventory increases, which takes time, the North Carolina market will continue to sizzle.