The past few months have been a roller coaster of uncertainty—plunging stocks, mass unemployment, nationwide business closures… Economic conditions of the US have been unstable and have led many to believe a housing crash is in store. Surprisingly, however, Coastal NC real estate has remained pretty stable. Here’s what you need to know.
Coastal NC Real Estate in 2020: What’s on the Horizon
It’s a sellers market
Like most of the state, the Crystal Coast is in a sellers market. In other words, there is currently a higher demand for homes than there are homes for sale. This is great news for sellers, as it means there are likely lots of buyers eager to purchase your home, and possibly even pay more.
For buyers, however, sellers markets indicate more competition, and possibly fewer options.
Prices are up, but expected to drop slightly
Despite fluctuations in the economy nationwide, home prices in Carteret County have held steady or even climbed slightly throughout 2020. However, prices are expected to drop as the year progresses, though fortunately not much.
For sellers, this, combined with the current shortage in homes for sale, means now is a great time to list.
Interest rates are rock-bottom low
If you’ve been thinking about buying a home, you’ve probably heard that interest rates are pretty low right now. It’s not an exaggeration; rates have been hovering at or near historic lows for a few months now. In fact, you can find conventional 30-year loans with rates as low as 3.1%. Drop to a 15-year loan and you’re looking at just 2.5%!
For buyers, low interest rates mean you’ll pay less for your home—monthly and overall—even if the price is the same or higher.
Outdoor spaces are in demand
With social distancing orders still in full effect, people are spending more time at home. Which means having enjoyable spaces—inside and outside—has become more important to many buyers and owners. If you’re thinking of selling a home on the Crystal Coast, think about how you might be able to upsell your outdoor spaces, whether that means sprucing up your balcony or adding a back patio.
If you’re thinking of buying, especially if you plan on renting out your home, you will likely want to put some strong consideration on the outdoor spaces of the homes you tour.
This won’t be like the 2008 housing market crash
One thing that’s very important to understand is how our current economic state differs from the 2008 recession. One of the biggest differences between the two is the underlying cause of the economic downturn.
Prior to the collapse of 2008, the housing market was experiencing a “bubble”, that is, prices were overinflated and buyers were taking out loans for much larger amounts than they could afford. The collapse occurred when prices fell and buyers found themselves with mortgage amounts greater than the current values of their homes.
Today, the economic downturn is the direct result of a global virus that’s caused many businesses to shut down. Prices are steady but not overinflated, and mortgage requirements are much stricter, which means buyers aren’t buying outside of their means. Prices haven’t dropped thus far, and aren’t expected to drop significantly at all.
In short, the economy has seen a lot of ups and downs this year, but real estate has held steady. And as more people return to work, as businesses reopen, and as the economy recovers, the housing market is expected to return to full strength, too.
Ready to Make a Move on the Crystal Coast?
If you’ve been thinking about buying or selling a home on the North Carolina coast, Linda Rike Real Estate would love to help. Whether you still have questions or you’re ready to get started, we’re here for you. Contact us at any time!