2020 will prove to be an exciting year for North Carolina real estate. Fluctuating prices, a shift in the target market of buyers, and much more have great promise to make 2020 a great year for real estate in the NC area.
In this article, we’ve distilled seven common real estate trends for you to investigate in your area.
1. Price Reduction, Slow but Steady
Slowly but surely, the average listing price for homes in North Carolina, especially in urban areas like Raleigh, have been decreasing. In January of this year, the average listing price in Raleigh, NC was at a high of $450K. There were brief spikes in February and March but over the course of the 2019 year that average listing price has reduced all the way down to $420K.
That’s a significant margin — thirty thousand dollars. So what do these lower prices mean for sellers?
For one, it could indicate that the housing market right now is not a sellers’ one. Sellers are being forced to sell at lower prices than they would hope for, so buyers have the upper hand. That makes cash for homes schemes a more attractive option. Naturally, if sellers are finding it difficult to sell for high prices that means that they are receiving fewer offers and their house is staying on the market for too long.
And as any homeowner trying to sell a house knows, a house staying on the market for long is a significant expense. Paying the mortgage on a house that you own while trying to pay the mortgage on the house that you’re moving into simultaneously is no easy task! Thus, a cash for homes scheme could be the way to go in 2020.
2. Mortgage Interest Rates are Declining
Nationally and in North Carolina, mortgage interest rates are on the decline and are now below 4%. What does this mean for sellers?
Any time that the mortgage rates are low, buyers are all ears. They become more and more excited to buy houses and want to buy them as soon as possible to take advantage of the downturn in mortgage rates. After all, due to the volatile nature of the housing market, there truly is just no telling when those interest rates are going to skyrocket back up.
Thus, as a seller make sure to take advantage of this period that the mortgage rates are low and list your house for sale.
3. Millennials are Buying Big-Time
As millennials begin to progress forward in their careers and make more money, they are beginning to purchase more and more houses. So much so in fact, that the primary buyer in North Carolina is a millennial.
What does this mean for you as the seller of a house?
Remember that a millennial values things that other members of your target market may not. While the older generation might be more focused on the size of the house, the younger generation may be more focused on the perks that come along with it. For instance, is your home a smart home? Is it green and environmentally-friendly, with low electrical bills? Is it in a good location that will shorten the millennial’s commute to work?
By creating your listing in a way that appeals to millennials, you’ll have more offers coming through. Remember that millennials are especially motivated by good aesthetics, so ensure that your home is staged well whenever you are in the selling process.
4. Rent is Increasing
As rent increases, this has obvious implications for the house-selling market. No one wants to invest money into rent when they could be investing the same amount of money into something that they would own in the long-term.
As rent continues to increase in North Carolina, be ready for more and more buyers wanting their money to go towards something that they will gain equity in. Buyers will be saving up more and more towards the down payment for a house.
5. Single-Family Homes are Supreme
As always, single-family homes reign supreme over the market. Comprising almost two-thirds of all listings, single-family homes are much more available on the market than are townhomes or apartments.
This has two implications for sellers. Number one, if you do have a single-family home then you need to be targeting the single-family market. Don’t waste any time trying to list your home for sale on websites that are more catered towards those who are looking for apartments or other types of house arrangements. Given that people are generally fairly set on what type of home they want to buy, chances are that you will not get a good return on your time investment by doing so.
Number two, if you do have a townhome or apartment for sale, lean very heavily into that. There aren’t a whole lot of those available on the market, so make sure that you highlight the uniqueness of your offering to your market.
6. Three Bedroom Houses Rule Over All
Just like single-family homes, three bedroom houses continue to rule over all others. By far the most popular home configuration, three bedroom houses remain the house of choice for most families.
This ties along with the single-family trend well.
7. Perks are More Important than Size
As we discussed above, millennials are typically more interested in perks than in the actual size of the estate. Thus, it’s worth investing a little bit more into your house now if you are planning to sell later on so that the house will have those perks when it is time to sell
Try making your home a smart home by installing controllable/dimmable lights, smart appliances, and the like. Leverage whatever techniques possible to make your home more environmentally-friendly (the green craze has massive implications for the real estate market). Not only can you enjoy these perks while you still own the home, but you will also have an easier time selling.
An Exciting Year for North Carolina Real Estate
All in all, it looks to be quite an exciting year for North Carolina real estate. If you are buying or selling in the coming year, make sure that you keep these 2020 real estate trends in mind!
For more lifestyle and real estate advice, be sure to check out the rest of the articles on the website!