We recently came across this list and thought it was very important to share with potential buyers and sellers. We feel it is essential to reassure you of the local Real Estate market. So many forms of media focus on the many negative aspects that are generally in other areas. Unfortunately, many seem to generalize the market issues across all states but North Carolina's market is promising. Here's why.
10 Things You Should Know About North Carolina's Real Estate Market
- THERE’S NO SUCH THING AS A NATIONAL REAL ESTATE MARKET. If you read the newspapers, it’s easy to get the idea that real estate markets are the same everywhere. If conditions are bad in Orlando or Los Angeles or Chicago, they must be bad everywhere, right? Wrong. All real estate is local. When you’re looking to buy or sell, pay attention first to sales price trends, volume and inventory in your target market or region, rather than to misleading headlines about national sales trends.
- NORTH CAROLINA HOME VALUES ARE STABLE. In 2007, the average sales price of a North Carolina home grew by 4 percent, an indicator that homes generally are still worth more now than they were just a few years ago. In fact, since 2000, the average home sale price in our state has risen by more than 25 percent. And in a 12-month period through September 2007, North Carolina had the seventh-highest appreciation in home prices in the country.
- IT MAKES SENSE TO USE A NORTH CAROLINA REALTOR®. If you had a $150,000 legal question, would you deal with it without an attorney’s assistance? If you had a $150,000 income tax issue, would you dare risk not consulting a CPA? There are nearly 45,000 REALTORS® in North Carolina, who subscribe to a strict code of ethics and are expected to maintain the highest level of knowledge of the process of buying and selling a home.
- NOW REALLY IS THE TIME TO BUY. Interest rates significantly dropped twice in January in an effort to stimulate the national economy. While North Carolina’s economy hasn’t suffered as much as some states, we nevertheless can benefit from these lower interest rates. The bottom line is this: If you’re a buyer, this market is for you!
- AND IF YOU’RE A SELLER, BE PATIENT … AND SMART.Price your home correctly – your home’s value is what someone is willing to pay for it, not the price that you think it should sell for. Competitive pricing is the single biggest reason that a home sells or does not sell. REALTORS® know the marketplace and help you determine an optimum sales price.
- IT’S A PRIME TIME FOR SECOND HOMES. Savvy investors and prospective retirees understand how important real estate is to their portfolios. Nationally, about one third of all home sales are second homes or vacation properties; in North Carolina, that figure is nearly 40 percent – largely because of our inventory and desirable locations in the mountains and on the coast.
- OWNING A HOME BUILDS WEALTH IN A WAY THAT RENTING CAN’T. According to the Federal Reserve Board, the average renter’s net worth is $4,800. Contrast that to the average homeowner’s net worth of $171,000. Clearly, it pays to own a home, as the hard-earned equity you build will pay future dividends.
- THERE ARE HUNDREDS OF REPUTABLE MORTGAGE COMPANIES READY TO LEND. If you have good credit and a realistic understanding of what you can afford, getting mortgage approval to purchase a home can be more easily attained. Help is also available through the North Carolina Housing Finance Agency and other organizations.
- A HOUSE IS WHERE YOU MAKE A HOME, NOT JUST A BUCK. Most purchasers don’t buy a house to flip it. They buy it to live in it, to establish their roots, to raise a family and to build on the American Dream. The value of strong communities, civic pride, comfortable retirement, and a higher quality of life can’t simply be expressed on a balance sheet.
- HOUSING DEMAND IN NORTH CAROLINA IS ON THE RISE. Even in what was considered a down year in 2007, there were more than 125,000 existing home sales in North Carolina – that’s the third highest number ever, exceeded only by 2006 and 2005. And estimates indicate that the Tar Heel state’s population will increase by more than 400,000 by 2010. These new North Carolinians will need a place to live!
Source: NC ASSOCIATION OF REALTORS®
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