Historically low mortgage rates, increases in wages and more available inventory have helped counteract rising home prices across the country, and the Sanford, NC real estate market is no exception. Thanks, in part, to major cities like Charlotte and Raleigh, real estate in North Carolina has seen its average prices rise at a faster rate than the majority of the country. However, price increases are expected to temper in the wake of COVID-19. That, combined with a resilient economy and improving affordability, should stimulate an already active housing market. Buyers, sellers, and investors should all find themselves with a growing number of opportunities for the foreseeable future.
Median Home Prices In North Carolina near Sanford
Not unlike everywhere else, North Carolina was hit hardest by the last recession around the first quarter of 2012; it was then that the state’s median home price dropped as low as $147,000. That said, the first few months of 2012 simultaneously marked the depths of the Great Recession and the beginning of one of the strongest recoveries the housing sector has ever experienced. Home prices began appreciating across the country, and the North Carolina real estate market was certainly no exception to the rule.
Thanks to widespread optimism, a strengthening economy, and—for better or for worse—a distinct lack of inventory, home prices in North Carolina have enjoyed nearly a decade’s worth of historical growth. Since the first quarter of 2012, the median home value in North Carolina has appreciated by nearly 40.0%. Today, the median home value in North Carolina is $208,001.
More North Carolina Market Info
NC REALTORS® staff and leadership continue to follow and address issues arising within the industry both across the state, as well as across the country.
How coronavirus is impacting the housing market (Curbed.com)
This article provides a comprehensive look at a variety of different perspectives on the impact of the current situation on the housing market, both from the supply side and from the buyer side. Here are a couple of key points:
- Zillow conducted a study on housing during previous pandemics and concluded that while home sales dropped dramatically during the pandemic, home prices stayed about the same or suffered a slight decrease.
- “Low interest rates help support demand, and consumer confidence readings in the coming months will be key, but the virus does heighten some of the longer-term challenges on the supply side in terms of housing supply,” says Robert Dietz, an economist with NAHB.
Yun: Fed’s Rate Cut to Zero Is ‘the Right Policy’ (REALTOR Magazine)
NAR Chief Economist, Dr. Lawrence Yun, provides readers with an update on the impact of the Federal Reserve Bank’s recent rate cuts. Here are a couple of key points:
- Matthew Graham, chief operating officer at Mortgage News Daily, says mortgage rates are not likely to go lower after the Fed’s meeting on Sunday. But watch for rates to possibly go lower at some point in the coming weeks due to the Fed’s mortgage bond buying effort.
- “The monetary policy change is the same one applied a decade ago during the Great Recession—the lowest rates combined with quantitative easing.”
- “This is an all-out measure to prevent a recession and fight the fear that is blanketing the country. It is the right policy, since the policy can easily be reversed should a vaccine be discovered or the virus goes away.”
- During the last recession, real estate was on “wobbly ground with loose lending and too much supply. Today, there is no subprime lending and too little supply. The real estate market will hold on much better.”
This article takes a very deep dive into the impact that the Federal Reserve Bank’s decision to reduce the benchmark interest rate to zero. It provides multiple calculators to assist you in determining actual pricing.
How Coronavirus Has Affected Real Estate (New York Times)
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