Every week, the team of Brokers at Carolina Plantations is asked if this is an excellent time to buy or sell. Since timing is just about everything in life, here are some crucial factors about our market here in Coastal North Carolina (Wilmington & Brunswick County). What we need to know about the market here by no means should or could be relatable to any other market, for we know our market and only our market.
What We’re Seeing
Doug spoke with two builders recently, and both said that the increased costs in building products have hardly come down. Yes, it was expected to drop; however, demands remain incredibly high for new homes in our area. In the spring of 2021, our region saw a surge of buyers coming here and scrooping up homes left and right. It was similar (from what we heard) to the Western Land Grab of 1889. This unexpected tidal wave of buyers just depleted our usual level of homes on the market. Most of the demand was fueled by COVID-19; however, one should keep in mind that Coastal NC is still one of the Top 3 Retirement destinations on the East Coast. With little to no inventory of homes to sell, buyers turned to builders despite the increased pricing of lumber and virtually all building materials.
- Our firm helped launch the building career of a local builder in our area in 2019. Doug spoke with David last week, and in early 2020 (pre-COVID), he was in the process of building ten homes, which is excellent for a small builder. Today, he and his team have 30+ homes under construction, and the demand has not slowed for them as we still have very little inventory of any kind of home to sell.
- One of our long trusted regional builders, who we have worked with on over 100 homes being built for our clients over the past 12 years, is now quoting an 18-month turnaround on the completion of their homes. Two years ago, they were quoting 8-9 months for delivery of a home after breaking ground. Shortages of skilled labor and never-ending supply issues are the two caustic factors contributing to the delay.
- With the Fed doing its jobs to slow down the economy, reports that it is affecting the real estate markets in major cities are actual, as inventories are climbing.
- We still see multiple offers on homes and condos if the product is in good condition and reasonably priced. Bargains are not yet on the table here as we are still in a Sellers’ market along the coast.
- We had a team meeting recently with a prominent builder in the area, and they have 17 rooftops for sale. A couple of townhomes are complete, but the homes are all under construction with a completion date of September to December. This is GREAT news as we have many buyers who have sold their homes elsewhere and need a home ASAP.
Much of what we have shared with you regarding our current conditions in Coastal NC can be found in a recent Forbes article on 2022 Housing Market Predictions. This article focuses on macro while our thoughts are micro. Click Here for a good read from Forbes.
Warnings for Buyers & Sellers in our Market
- We do not see prices for new homes going down anytime soon. Perhaps, mid-late next year, if our country can get a grip on supply issues, but we can’t guarantee it.
- Resales prices are already leveling off, and many knuckle-headed Sellers are finding out that their asking prices are simply ridiculous.
- You still need to act quickly on a new or resale home. You might not have as many offers to contend with, but don’t get lazy or too confident that your green money is greener than others.
- Listen to your Realtor. Don’t ignore them. We provide you with real numbers, history, and statistics, so don’t toss those out and list your place at a price it will not sell.
- Prices are declining nationwide, so don’t sit back and wait too long.
- Know where you are going. Just don’t list and sell unless you have somewhere to move to. Rentals are almost non-existent, and prices for rentals have increased significantly.
We have shared with you some significant trends in our market, so now it is up to you to consider this information if you’re buying or selling soon. And as always, please contact our team at Carolina Plantations at 910-755-7557 for friendly, informative, and timely conversations.