Appreciation and housing starts up in many North Carolina markets
Despite economic conditions that continue to improve in North Carolina, the Federal Reserve Bank in Richmond reports that North Carolina real estate markets have not fared quite as well. Jobs are still plentiful in the state, with a steady 5.4 percent unemployment rate holding through the end of the year. But with only 3,518 new residential building permits issued in November 2015, new housing starts are down nearly 25 percent from October 2015 and 7.6 percent lower than the same period in 2014.
The good news in housing is that the price of houses continues to rise, however slowly. Home values across the state appreciated 0.4 percent in October 2015, representing a 5.2 percent increase over 2014. And the price increases are expected to continue.
In other positive news, mortgage delinquencies are down for 2015 in the North Carolina real estate market, as they are in the rest of the country. In the third quarter of 2015, delinquencies of 90 days or more were at about 1.7 percent in North Carolina — right at the nationwide average. That’s real progress in a relatively short period of time, especially when you consider that the delinquent numbers were at close to 5 percent in the country in 2010 and more than 4 percent in North Carolina.
Where the Money’s Going
While areas such as Raleigh and Charlotte pulled the highest number of new private building permits in North Carolina real estate markets, it was Asheville that saw the greatest increase (33 percent compared to 2014). No other market comes close in the state; Wilmington and Greenville, North Carolina real estate markets actually saw a decrease of more than 40 percent and even Durham’s new building permits were down close to 40 percent over 2014.
North Carolina real estate market values varied pretty widely from area to area. Charlotte showed the greatest increase in value (7.57 percent over 2014). Asheville experienced a 5.08 percent increase year to year, and Hickory came in last with a mere 0.74 percent boost.
Trends to Watch in 2016
With a strong job market, comes the need for more housing, making North Carolina real estate a very hot commodity in the near future. Charlotte still sits high in the banking industry and continues to attract residents and businesses alike. North Carolina’s strong job market continues to revolve around the sciences, education and technology. And NC now shows up as one of the major filmmaking locations in the nation, ranking third in the country in 2015, which is expected to keep on growing.
The big housing bust that led to the 2008 recession didn’t hurt North Carolina real estate markets as heavily as other parts of the country, making its comeback even sweeter. NC housing prices only sit now at 4.8 percent below the pre-recession peak. That compares to a major 13.4 percent experienced nationally. So if you own property in any of the hot markets, including Asheville, Charlotte and Raleigh, or plan to buy a house this year, the stars are aligning nicely for you and your NC neighbors.
Contact Zack today to find out how he can help you buy a North Carolina home.
