Wilmington, North Carolina, is a coastal city with a vibrant economy and a growing population. The Wilmington housing market has been strong in recent years, with home prices rising steadily.
According to Movoto, in October 2023, the median list price for homes in Wilmington, NC, surged to $454,950. This represents a significant increase from the previous year’s $419,995, with indications of continued growth in the near future.
Several factors contribute to the strength of the housing market in Wilmington:
- Attractive Location: Wilmington is a sought-after destination for retirees and second-home buyers, enticed by its warm climate, stunning beaches, and historic downtown area.
- Economic Growth: The local economy is thriving, resulting in the creation of new jobs across various industries.
- Limited Supply: A shortage of available homes is exerting upward pressure on prices, intensifying the competition among buyers.
Summary of Market Statistics
For a concise overview of the Wilmington, NC housing market in October 2023, consider these key statistics:
- Active Home Listings: 1,215
- New Homes for Sale: 98
- Median Home Price (October 2023): $454,950
- Average Days on Market: 47 (down from 91 last year)
- Homes Sold (October 2023): 572 (up from 1,148 last year)
- School District: New Hanover County R-1
- Average School Rating: 5 out of 10 by GreatSchools
Wilmington Housing Market: Prices and Trends
The Wilmington housing market has been making waves in recent years. Here is some of the data by Redfin for the Wilmington housing market, examining house prices, trends, and more.
With a median sale price of $389,000 in September 2023, which represents a 9.8% increase since the previous year, the market is characterized as “very hot.”
Key Market Trends
An overview of the Wilmington, NC housing market reveals the following essential trends:
- Median Sale Price: $389,000
- Days on Market: 10
- Homes Sold (September 2023): 163
- Market Type: Very competitive
Several key factors are contributing to this robust housing market:
Driving Factors
- Attractive Location: Wilmington’s appeal to retirees and second-home buyers is driven by its warm climate, beautiful beaches, and historic downtown area.
- Economic Growth: The local economy is on the upswing, with new job opportunities arising across various industries.
- Limited Supply: The scarcity of available homes is resulting in increased demand and pushing prices upward.
Wilmington Housing Market Forecast
The Wilmington housing market is always a topic of interest for both residents and potential homebuyers. In this article, we’ll delve into the latest insights and forecasts provided by Zillow regarding the housing market in Wilmington, North Carolina.
Current Market Overview
As of August 31, 2023, Zillow reports that the average home value in Wilmington stands at $389,999. This figure represents a significant increase of 6.4% over the past year, showcasing the market’s upward trajectory. What’s even more intriguing is that homes in Wilmington are going to pending status in an astonishingly short period, taking only around 7 days to secure a buyer. This swift turnaround time underscores the high demand for properties in the area.
Key Market Metrics
Let’s take a closer look at some crucial metrics that offer insights into the Wilmington housing market:
- Median Sale to List Ratio (July 31, 2023): The median sale-to-list ratio reflects a balanced market, standing at 1.000 as of July 31, 2023.
- Percent of Sales Over List Price (July 31, 2023): A significant portion of sales, approximately 40.5%, are happening over the list price, indicating strong competition among buyers.
- Percent of Sales Under List Price (July 31, 2023): About 40.1% of sales are occurring under the list price, showcasing some negotiation room for buyers.
- Median Days to Pending (August 31, 2023): With a median of 7 days to pending status, homes in Wilmington are flying off the market, emphasizing the need for swift decision-making.
Wilmington MSA Housing Market Forecast
In addition to the local housing market, it’s valuable to consider the broader Wilmington Metropolitan Statistical Area (MSA). According to the forecast, the Wilmington MSA is expected to see notable growth in housing values over the coming months. Starting with a modest 0.5% increase by September 30, 2023, the region is projected to experience substantial growth, with a forecasted increase of 6.7% by August 31, 2024.
Addressing Common Questions
Before concluding, let’s address a couple of common questions regarding the Wilmington housing market:
Are Home Prices Dropping in Wilmington, NC?
No, according to Zillow’s data, home prices in Wilmington, NC, are not dropping. In fact, they have experienced a significant increase of 6.4% over the past year, indicating a robust and appreciating market.
Is It Expensive to Live in Wilmington, North Carolina?
Wilmington, North Carolina, offers a diverse range of housing options, and the cost of living can vary. While home prices have been on the rise, the overall cost of living in Wilmington is influenced by factors such as housing, transportation, and amenities. It’s advisable to consult local experts and consider your personal circumstances when evaluating the affordability of living in Wilmington.
In conclusion, the Wilmington housing market, as forecasted by Zillow, continues to exhibit growth and competitiveness, making it an exciting place for both homeowners and potential buyers.
Should You To Invest in Wilmington Real Estate Market?
Wilmington, North Carolina, is not only a picturesque coastal city but also a burgeoning real estate market with a lot to offer investors. Before delving into the reasons to invest in Wilmington real estate, let’s start with an overview of the market:
Wilmington’s real estate market has experienced consistent growth in recent years. With its beautiful beaches, vibrant culture, and a strong job market, the city attracts both residents and tourists. This influx of people has driven demand for housing, making Wilmington an attractive destination for real estate investors.
The city offers a diverse range of properties, including single-family homes, condominiums, and rental apartments. The market caters to various investment strategies, from long-term rental properties to short-term vacation rentals, providing flexibility for investors.
Now, let’s explore the top reasons to invest in Wilmington real estate and potential drawbacks:
Top Reasons to Invest in Wilmington Real Estate
1. Strong Job Market
Wilmington’s job market has been steadily growing, particularly in industries like healthcare, education, and technology. A robust job market can lead to increased demand for rental properties, making it an ideal environment for real estate investors.
2. Coastal Appeal
Wilmington’s coastal location, with its beautiful beaches and waterways, attracts tourists and retirees alike. This popularity drives demand for vacation rentals and retirement homes, offering a wide range of investment opportunities.
3. Diverse Property Types
Investors can choose from various property types, including historic homes, waterfront properties, and new developments. This diversity allows investors to tailor their portfolios to their preferences and investment goals.
4. Steady Appreciation
Wilmington has seen consistent appreciation in home values over the years. This can lead to long-term wealth accumulation for real estate investors as property values increase.
5. Thriving Tourism Industry
The city’s appeal to tourists means a steady stream of potential renters for vacation properties. Wilmington’s rich history, cultural events, and entertainment options contribute to a robust tourism industry.
6. Sizable Student Market
Wilmington boasts a sizable student market due to the presence of esteemed educational institutions like the University of North Carolina Wilmington (UNCW). This student population creates a steady demand for rental properties, especially apartments and student housing, offering a reliable source of rental income for investors.
7. Low NC Property Tax Rate
North Carolina has a reputation for having relatively low property tax rates compared to many other states. This favorable tax environment can enhance the profitability of real estate investments in Wilmington, as lower property taxes mean higher potential returns for investors.
Therefore, investing in Wilmington real estate offers various opportunities, driven by the city’s strong job market, coastal appeal, and property diversity. However, potential drawbacks, including competition and maintenance costs, should be carefully considered when formulating an investment strategy. Conducting thorough research and seeking advice from local real estate professionals can help investors make informed decisions in this dynamic market.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Wilmington, NC is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
- https://www.movoto.com/wilmington-nc/market-trends/
- https://www.redfin.com/city/29661/MA/Wilmington/housing-market
- https://www.zillow.com/home-values/21320/wilmington-nc/
- https://www.realtor.com/realestateandhomes-search/Wilmington_NC/overview