Hot Real Estate Market in Central North Carolina

Table of Contents

1. Introduction
2. Trend #1: High-interest rates
3. Trend #2: Buyers sitting tight
4. Market shift towards buyers
5. Seller strategies to compete
6. Improving home condition
7. Dropping the price
8. Median sales prices in four counties
9. Overall market appreciation
10. Future outlook: Expected decrease in mortgage rates

Introduction

Hey, it's Kate! If You're watching this video, then you probably already know who I am. I wanted to take a few minutes to share some important trends and updates regarding the real estate market in our area, specifically around the Fort Liberty area. I've noticed a lot of homeowners checking their home values and asking questions about the market. In this video, I'll discuss the trends we're seeing and what they mean for those looking to sell or buy a home in the next year. Additionally, I'll provide insights into what we can expect for the upcoming year. So let's dive right in!

Trend #1: High-interest rates

One significant trend that's hard to miss is the recent rise in interest rates. Over the past few weeks to a month, interest rates have reached near-Record highs, even touching 8% for some conventional loans. However, there's good news. Just this week, I received news of a VA buyer getting preapproved at seven and a quarter, indicating a slight downward trend in interest rates. While they're still relatively high, they appear to be slowly coming down.

Trend #2: Buyers sitting tight

The high-interest rates have led to another trend in the market—buyers choosing to sit tight and delay their home purchase. It's understandable that buyers would want to wait for more favorable interest rates. However, this shift has created less competition among buyers, particularly at higher price points. While we're not completely in a buyer's market yet, we're definitely heading in that direction, especially for homes priced above the average.

Market shift towards buyers

With buyers sitting tight, the market dynamics are shifting. The decrease in buyer competition means sellers now have to find ways to stand out and attract buyers. The market conditions are becoming more favorable for buyers, especially within the mid-range to high-range price points in Cumberland, Moore, Hoke, and Harnett counties.

Seller strategies to compete

To compete for buyers who have multiple options, sellers are adopting specific strategies. Two common approaches include improving the overall condition of the home and adjusting the price.

Improving home condition

Many sellers are putting extra effort into presenting their homes in the best possible light. Some are even investing in staging or making minor renovations and improvements, like replacing carpets or freshening up the paint. These relatively inexpensive preparations can make a significant difference in attracting potential buyers.

Dropping the price

If a home doesn't sell within a few weeks or months, sellers often resort to dropping the price. This strategy is an attempt to adjust the home's value to Align with market expectations and attract buyers. Consequently, you might see your home's value plateau or even experience a slight dip. However, experts do not anticipate a major correction in prices. Most price drops range from $5,000 to $10,000 and largely depend on the original pricing strategy.

Median sales prices in four counties

To provide a better understanding of the market, let's take a look at the median sales prices for the four counties Mentioned earlier–Cumberland, Moore, Hoke, and Harnett.

Overall, the market has remained relatively stable, with a slight upward trend in prices over the past two years. On average, our local market appreciates by 3 to 4% annually. Considering the national average, this is a positive sign. Even if the value of your home might have fluctuated, most homes Continue to appreciate, with a few outliers. It's important to note that individual circumstances can impact the appreciation of a specific property.

Overall market appreciation

Despite any minor fluctuations, the housing market has shown consistent appreciation. Over the past year, median sales prices have experienced positive growth rates across the board. This indicates a healthy market and provides peace of mind to homeowners.

Future outlook: Expected decrease in mortgage rates

Looking ahead to next year, industry experts predict a potential decrease in mortgage rates. We have already started to see interest rates in the low seven percent range, and experts believe they may further decrease into the six percent range by the first quarter of next year. As the year progresses, there is optimism that rates will continue to stabilize and potentially reach the lower end of the six percent range by the end of the year. It's important to note that the Current real estate landscape presents unique and unprecedented conditions, making precise predictions challenging.

In conclusion, these trends and insights aim to bring Clarity to the real estate market in our area. If you have any further questions or simply want to catch up, feel free to reach out. I'm here to help. Take Care!