Riding the Rollercoaster: Real Estate Trends in the Carolinas
Unpredictable and volatile, real estate is often compared to a rollercoaster. That means you can experience thrilling highs. But it also leaves you with sudden drops too. Market conditions, economic factors, interest rates, and other variables can all have an impact on your investment in a home. This article rounds up real estate trends in the Carolinas to help you navigate the dynamics of 2023.
Staying informed about real estate trends empowers you to make better decisions regarding your property. You can align your choices and personal financial goals with what’s happening with local real estate. Trends in real estate impact:
Not all trends that impact you directly are regional or local. National trends can also play a role.
The higher interest rates right now certainly impact decision making. In late August, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) had reached a peak not seen since 2001. The average on 8/24/03 for a 30-year FRM hit 7.23 percent; a 15-year FRM was up to 6.55 percent. Freddie Mac’s analysts predicted continued “upward pressure on rates in the short-term.”
Median existing-home sales prices are also breaking records. The National Association of Realtors saw the price hit $410,200—the second-highest price ever recorded. The highest was $413,800 in June 2022.
The national market remains competitive thanks to tight inventory and people who purchased their homes at low mortgage rates deciding to stay put. Lawrence Yun, head economist at the National Association of Realtors told Forbes, “The recovery has not taken place, but the housing recession is over.”
In North American Moving Services’s 2022 Moving Migration Report, South Carolina attracted the most movers.
Myrtle Beach, SC,is currently the fastest growing city in the nation, according to U.S. News and World Report with net migration at 4.46 percent. It also ranks high on the Best Places to Retire 2022-2023 (#28) and takes #18 on U.S. News’s Best Places to Live.
In late August, Zillow valued the average South Carolina home at $287.618, up 3.2 percent from the past year. As of June 30, 2023, 52.6 percent sold under list price with 24.4 selling over list price.
In Charleston, Zillow reported an average home price of $519,979 up 2.5 percent. Only 29.8 percent were sold over list with 48.8 percent sold under list price as of June 30, 2023. In Myrtle Beach, Zillow saw a typical home value of $302,303, up 1.3 percent over the past year. That’s with 75.8 percent selling under list price.
Discussing investing in South Carolina real estate, Fortune Builders predicted an increase in suburban housing in the Palmetto State thanks to the hybrid/remote work trend. That may be one factor in the 1.3 per percent increase in Summerville home values to $370,208 per Zillow.
Meanwhile, in the Milken Institute’s ranking of Best Performing Cities, Myrtle Beach came in 12th in one of the ranking’s biggest gains of 2023 up 89 spots from 101 in 2022. Charleston-North Charleston, SC, placed 24.
North Carolina’s real estate market also remains strong, especially in the Charlotte area. Zillow predicted Charlotte would have the “hottest housing market” for 2023 largely due to the “forecasted annual home price growth.” According to Penske Truck Rental’s data Charlotte was also #6 in the Top 10 Moving Destinations for 2022. That was a drop from #4 in 2021. Further, Atlas Van Lines migration pattern data suggested North Carolina was the number one migration destination for 2022.
While there is a regular influx of buyers to the state, some important numbers are trending down. According to the NC Realtors’ April 2023 NC Housing Report, real estate listings were down 4.8% from 2022 (43,838 vs. 46,057). Sales dropped 22.5 percent year-over-year (12,297 in 2023 compared to 15,589 in 2023). Yet inventory was up 16 percent, which helps buyers. Meanwhile the median sales price increased 4.4 percent from $290K in April 2022 to $302,549 in April 2023.
In late August, Zillow reported the average North Carolina home value at $320,922, up 2.6 percent from the past year. As of June 30, 2023, 41.8 percent of homes sold over list price and 41.0% sold under list price.
In Charlotte, Zillow reported an average home price of $382,999 down 1.2 percent. Yet 47.4 percent were sold over list and 35.8 percent under list price as of June 30, 2023.
Meanwhile, in the Milken Institute’s ranking of best performing cities, Charlotte-Concord-Gastonia placed 20th.
The shortage of housing supply is one cause of increasing home prices. At Saussy Burbank, we’re doing our part to provide more available housing in both North Carolina and South Carolina. Look for our custom, quality new homes in and around Charlotte, Charleston, and Myrtle Beach. View our online gallery to see what’s available.
