Are You Prepared for North Carolina's 2021 Real Estate Market?
When COVID-19 arrived, real estate professionals and industry watchdogs weren’t sure what to think. Luckily, however, the North Carolina real estate industry has remained exceptionally strong — a trend that’s expected to continue. In 2021, markets across the Tarheel State are forecasted to continue to set records. With demand steadily increasing, low-interest rates motivating buyers, and rapidly rising home sale prices, real estate agents all across North Carolina should gear up for another sweltering year.
2021 North Carolina Real Estate Outlook: Hot
In December of 2020, the average home in the state of North Carolina was valued at $220,710. That’s a 7.6% increase year-over-year, and Zillow predicts the market will rise another by 10.2% within the next year. Bustling real estate activity, despite 2020’s challenges, is a promising sign that 2021 could be profitable for North Carolina-based agents and sellers alike.
Additionally, inventory in the Charlotte metro area has dropped nearly 23.0% compared to 2019. The number of days properties spent on the market also fell to 35 days during that same period. Thanks to record low-interest rates (the lowest they’ve been in five decades) and continued strong demand, North Carolina will likely be a seller’s market as 2021 unfolds.
Rent prices, on the other hand, have increased by 3.3% year-over-year statewide but still remain 15.5% lower than the rest of the country. Meanwhile, a total of 0.9% of North Carolina mortgages were reported as delinquent, just slightly above the national average of 0.8%. So, while new transactions continue to boom and warmer weather draws more and more people to North Carolina, current homeowners will thrive as well.
2020 North Carolina Real Estate Market Data
|Zillow Home Value Index||$220,710|
|1-Year Change on Home Values||+7.6%|
|1-Year Change on Rent Prices||+3.3%|
|Homes With Negative Equity||0.9%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for North Carolina
In November of 2020, the Bureau of Labor Statistics reported that the North Carolina unemployment rate was 6.2%, down from 8.5% in July. Currently, North Carolina sits just above the national unemployment rate of 6.9%, but that’s likely to continue improving as tourism, events, and hospitality return to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for agents the year ahead.
North Carolina also sports some other very attractive features that could positively impact its market. For example, it has attracted several large corporations to the area, including Centene Corporation, a provider of managed care services for health care plans. The Centene move alone is expected to bring nearly 3,000 jobs to the area. Meanwhile, others with new remote work positions are leaving the high taxes and harsh winters of northeastern cities for the temperate climate, rich culture, affordable real estate, and business-friendly environment that North Carolina has to offer in a big city exodus.
According to our North Carolina-based Business Development Executive, Barbara Wilkinson, 2021’s inventory will remain low (about 60 day supply) with a noticeable influx of Millennials moving to cities like Charlotte, Raleigh, and Durham. She’s expecting bidding wars to ensue and home prices to reach new heights. North Carolina real estate, while still a great investment that affords homeowners a high quality of life, will play out to be a strong seller’s market in 2021.
As the country’s second largest financial center and an economic powerhouse, local real estate agents will need to be at the top of their game and prepare clients for the likelihood of bidding wars this year. However, out-of-state buyers are looking to make North Carolina their permanent residence and are thus likely willing to pay more, which could shatter previous real estate records. So, with a myriad of opportunities on the horizon, there has never been a better time to help your fellow or future North Carolinians purchase the home of their dreams.
Ready to Seize the Year With the Best North Carolina Real Estate Courses From The CE Shop?
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow North Carolinians with the real estate they’re looking for, or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date with everything happening in North Carolina? Join our Southern Real Estate Facebook Group!