2024 Real Estate Forecast for North Carolina

2024 looks to be a very favorable year for the real estate business in North Carolina. Listed below are some of the data points from 2023 and the forecast for 2024:

North Carolina Real Estate Market Statistics

• Average Home Prices: The average median home price in North Carolina is $363,600, up by 3.9% YoY. In 2024, experts predict the median sale price will increase due to the tight inventory. Currently, the sale-to-list price ratio is at 98.8%.
• Home Sales: As per September 2023 data, home sales decreased by 20.5% YoY! In September 2023, only 12,002 homes were sold, down from 15,088 in September 2022.
• Average Rent Prices: Rental costs vary statewide. An average tenant in Charlotte pays $1,670, while the one living in Asheville pays $1,705.
• Median Days on Market: The median days on the market for homes for sale was 35 days, up by 2 days YoY.
• Pending Sales: The number of homes for sale declined by 13.2% YoY compared to 2022. Currently, there are 41K homes for sale in North Carolina.
• Months of Supply: The average months of supply is 2 months. NC’s demand can’t be satiated with the low supply. NC’s house scarcity is worse than the national housing market.
  

​North Carolina Housing Market Predictions 2024
North Carolinians have survived the shockwaves of skyrocketing mortgage rates and rising home prices of 2023. Here’s what we predict for North Carolina’s housing market:

1. Home Sellers Will Return to the Market in 2024: Sellers who chose the sidelines in 2023 will come back. Especially those who can’t avoid new jobs or want to move to a cheap place. Whitney, the analyst who predicted the 2008 financial crisis accurately, has forecasted that baby boomers looking to downsize will also add up to 30 million housing units. Yowaza!
2. Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the softening labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. We think the rates will remain above 6%, but they will stabilize in the second half.
3. The Number of Home Buyers Will Rise: The historically high interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The easing inflation and stabilizing rates will bring back house hunters.
4. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across NC YoY, reaching $363K in September 2023. Experts predict home prices will continue to rise until the low supply-high demand dynamic changes.
5. New Home Constructions Sales Will Increase: 12.3% of homes purchased in September were new homes, the highest since 2022. Home builders offered $30,000 worth of concessions to attract buyers in 2023. We think builders and sellers will compete for buyers in 2024.
6. iBuyers Will Continue to Make Lowball Offers: iBuyers offered 104.1% of market value in 2021. They offered 86% in 2022 and around 70% in 2023. Opendoor and Offerpad have lost billions of dollars in 2023. As they struggle to survive, they will make lowball offers.

Remember that if you need any help with buying or selling real estate around the Durham area, give Carl Johnson a call at 919-880-0904. For more on Durham, visit our Durham resource page by CLICKING HERE.