North Carolina has a population of over 10 million people. The population is growing thanks to the comfortable temperatures, high quality healthcare and lower cost of living. As a result, there is a greater demand for houses, which explains why the Raleigh housing market is booming. Over the last seven years, 650 new subdivisions were approved, adding more than 40,000 new homes.
Let’s learn more about the health of the North Carolina property market and why it may be the perfect investment opportunity for you.
- “The Triangle’s” population is surging.
The Triangle is a region in North Carolina that includes the cities of Raleigh, Durham and Chapel Hill. A 2017 census estimate put the population over two million, making it the second largest metropolitan area in NC, aside from Charlotte. In fact, the surge in population is the largest in the country, comparable to Dallas-Fort Worth.
- Home prices are on the rise.
According to Zillow, the median home price in Raleigh is $314,900 – up 16.9% in a year. Home prices are increasing due to demand, but also because builders are facing costs they didn’t have 10 years ago. Everything costs more – land, labor, materials and financing. These higher costs are forcing builders to charge more. Though other counties in The Triangle aren’t seeing as much of an increase, their median home prices are more expensive.
- Cash remains the best way to strengthen offers.
There is a lot of competition in the North Carolina property market. New residents from the Northeast are especially eager to get a home in the Raleigh region and don’t mind paying $300k-$400k for a home. Realtors are working tirelessly to find their clients the best deals, but as always, cash is king.
- Rent is increasing, pushing renters into the burbs.
The rent scene in Charlotte is changing. New high-profile buildings are in the works. Even though Charlotte’s apartment market is strong, some older apartments are sitting vacant. With rising rents and more luxurious apartments, middle income families are being forced to reconsider their living arrangements. This trend could drive more people into the suburbs.
- Houses are selling incredibly fast.
The North Carolina property market is tight. Houses are selling in an average of 96 days. Last fall, there were only 2.3 months of supply available. Real estate professionals say that four to six months of inventory is ideal. With high demand and low inventory, home prices have increased steadily as well.
Overall, the North Carolina property market is healthy and strong. New homes are being built, the population is increasing and people are moving from the cities to the burbs for more affordable housing. The signs are clear – it’s a great time to invest!