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2022: What to Expect in North Carolina Real Estate
December 22, 2021

2022: What to Expect in North Carolina Real Estate

by The CE Shop Team

Are You Prepared for North Carolina's 2022 Real Estate Market?

Despite another crazy year filled with uncertainty due to COVID-19, the North Carolina real estate industry has remained exceptionally strong.

As we enter 2022, high demand, limited inventory, and rapidly rising home sale prices will keep real estate agents busy. Agents all across the Tar Heel State should gear up for another booming year.

2022 North Carolina Real Estate Outlook: Hot

In November 2021, the average home in the state of North Carolina was valued at $277,795. That’s a whopping 23.6% increase year-over-year (YoY), and Zillow predicts the market will rise another 11.7% in 2022.

North Carolina Home Data Zillow
Source: Zillow

Mirroring this trend in home prices, the number of homes sold in North Carolina rose by 9.3% on average, though this increase was far from universal across the state. Surprisingly, the number of homes sold in Raleigh slumped 3.2%, and the number of homes sold in Charlotte increased by only 2.9%. However, the number of homes sold above list price increased in both of these markets. The percentage of homes sold above list price rose 16.0 pts in Raleigh and 10.2 pts. in Charlotte, making the total percentage of homes sold above listing 62.7% and 50.7%, respectively.

Unfortunately, the current supply of homes in North Carolina can’t curb any increase in home prices. The number of homes for sale in the state fell by 32.3% YoY in November 2021. The current number of active listings in North Carolina is only 15,019, which is a slight increase from a record low of 12,219 active listings in May 2021.

And prospective buyers aren’t the only ones feeling the heat; renters have been getting burnt in this housing market. Rent prices have increased by 19.7% on average YoY statewide. Rent prices in popular metro areas followed this trend, as rent increased by 15.2% and 13.9% in Raleigh and Charlotte, respectively.

Meanwhile, a total of 1.0% of North Carolina mortgages were reported as delinquent as of March 2021. The percentage of homes with negative equity was 1.9% statewide. While this figure is higher than other states, homeowners in North Carolina gained $54,000 on average in homeowner equity. 

Despite the rising prices and lack of available homes, North Carolina’s population in 2021 is estimated to be 10.5 million, making it the ninth most populated state in the country. It experienced the sixth largest state population increase in the last decade, as 639,170 new residents migrated to the Tar Heel State between 2010 and 2019.

In an interview with Forbes, Daryl Fairweather, the chief economist for Redfin, predicted the following for 2022’s housing market: “After two years of unprecedented uncertainty in the housing market, we’re expecting 2022 to be just as unpredictable. We expect 30-year-fixed mortgage rates to slowly rise from around 3% to around 3.6% by the end of the year, mostly attributed to the pandemic subsiding and inflation continuing to linger.”

So, while home prices boom, buyers scramble to find affordable housing, and North Carolina’s coastal shore continues to invite waves of new residents, current homeowners, sellers, and real estate agents will keep thriving in 2022.

2021- 2022 North Carolina Real Estate Market Data

Zillow Home Value Index

$277,795

Home Value Change YoY

+23.6%

One Year Home Values Forecast

+11.7%

Rent Price Change YoY

+19.7%

The Percentage of Homes With Negative Equity

1.9%

Mortgage Delinquency Rate

1.0%

Available Housing Inventory

15,019

Buyer’s or Seller’s Market

Seller’s

Market Insights for North Carolina 

In November 2021, the Bureau of Labor Statistics reported that the North Carolina unemployment rate was 3.9%, down from 4.6% in June. Currently, North Carolina sits slightly below the national unemployment rate of 4.2%. As the economy continues to heal and crucial job markets like tourism and hospitality return, the unemployment rate is expected to continue dropping. 

North Carolina Housing Market Forecast 2022

In the meantime, North Carolina remains a top relocation destination, and it’s no surprise why. The state is ranked as the fifth-best state to live in, according to YouGov. Let’s how else the Tar Heel State compares to the rest of the country:

  • Second in business climate
  • Seventh in education
  • Seventh in fiscal stability

North Carolina is home to the country’s second-largest financial industry city, and it has become an economic powerhouse. We expect it to remain a top-ranked state in the country as well as a top relocation destination in the coming year. The influx of new residents will create more competition and continue to strain the housing supply, making North Carolina real estate agents all the more important as we enter 2022.

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