Looking Ahead: What’s in Store for the North Carolina Housing Market in 2023?
What elements do experts expect to impact Raleigh and Charlotte markets in the coming year?
2022 brought a nationwide housing market slowdown, but strong markets like Raleigh and Charlotte continued to see overall growth. We talked with Madeline Stephens, Head of Sales at Atmos, to discuss the changes that experts expect to see in the coming year.
Fluctuating Interest Rates
Interest rates are expected to continue to rise in the first part of 2023 before finally beginning to drop. These heightened interest rates have led to a higher degree of selectiveness among buyers as investments don’t stretch quite as far without the flexibility of 2021’s record-low interest rates. While some markets in the U.S. may see a decrease in demand, experts still expect North Carolina to continue experiencing an influx of people relocating to major cities and their suburbs.
Restored Equilibrium
In many U.S. cities, continuously rising interest rates are expected to bring equilibrium among buyers and sellers. 2020 and 2021 were strong seller’s markets almost everywhere, pushing buyers to compromise in order to enter a hot market. In North Carolina, while a semblance of balance may improve options for buyers, the population growth throughout the state is still expected to keep the market in favor of sellers overall. Housing supply throughout the state continues to fall behind demand. This ongoing competition paired with still-high interest rates may drive an increasing portion of buyers to opt for new construction and custom built homes in order to protect their investment and avoid overpaying for a large compromise.
Ongoing Growth
Experts predict a slower year in terms of total homes sold, however they still expect growth in terms of overall home values. This means that 2023 is still a great year to enter the housing market, as buyers can expect continued appreciation in popular areas like Raleigh, Charlotte, and their suburbs.
While supply chain issues have not resolved as quickly as experts may have hoped, the outlook is still positive that we should continue to see steady improvements throughout 2023. This will serve to make new construction and custom builds smoother and more predictable in terms of budget and timeline. This consideration alongside the expected growth makes building a new home a great investment for those who are ready for a long-term home that won’t require the immediate renovations and repairs that many existing homes do.
Expanding Job Markets
One of the drivers of this high demand in North Carolina is the expansion of several job markets. Apple’s upcoming campus in the Research Triangle will create more tech jobs over the next decade, while a large automotive manufacturer plans to open in Chatham County near Raleigh. These expanding offices and new headquarters draw job seekers in every walk of life, and nearby universities attract students and researchers. In addition to the lifestyle advantages of living in North Carolina such as the temperate climate and the wealth of outdoor activities, the strength of the job market offers a strong pull as well.
Even amidst challenging interest rates, competition for North Carolina homes in many popular zip codes remains fierce. Instead of making large compromises only to pay heightened interest rates, many buyers are opting to build custom instead. By building custom, you take control of the location, layout, and amenities of your new home while enjoying the assurance of a strong resale value in North Carolina’s continually strong market.
Ready to create the custom home of your dreams? Get started with Atmos today!
