Should You Buy a Home in Central NC? Local Market Trends to Watch

Central North Carolina is home to some of the state’s most-visited attractions, as well as its most breathtaking natural areas. Nestled between the mountains to the west and the Coastal Plain to the east, it’s also the most populated region, spanning major cities that include Charlotte, Greensboro, Winston-Salem, and the capital of Raleigh.

Also called the Piedmont Crescent region, this area is defined by rolling hills, a temperate climate, and bustling industries, including textile and furniture manufacturing. This might be why so many people want to call it home!

According to a recent report by the Charlotte Regional Business Alliance, around 113 people moved to the Queen City per day between July 2021 and July 2022. That’s 41,163 new residents -- or about double the size of the Carolina Panther’s regular-season roster!

Is now the right time for you to put down roots in Central NC? Whether you’re a first-time buyer, relocating from another state, or looking for a potential real estate investment, it helps to understand what the local market’s doing, and where it might go.

Today, we’re taking a look at current trends and future forecasts, sharing everything savvy buyers need to know before they make a move.

First-Time Buyers: Financial Aspects to Consider

Whether you’re searching for the perfect single-family home or you’d prefer to live in a multi-family complex, buying your first property can be an incredibly exciting time. It can also be an overwhelming process to navigate, which is why most experts recommend starting early!

For this group of buyers, the most important factors to consider are:

• Cost

• Competition

It’s fun to envision what your new home in Central NC will look like, including all the must-haves and wishlist items you’d love. Yet, before you get too far into the planning process, you need to know the financial aspects involved, and how market conditions can influence them.

In addition to one-time expenses like your down payment and closing costs, you’ll also have recurring bills to budget for, including your mortgage. While interest rates will vary based on the type of mortgage you choose and your lender, these expenses normally follow discernable patterns.

Across the U.S., the average interest rate for a 30-year fixed mortgage is currently 7.68%. Comparatively, the average rate in North Carolina is 7.54%. While this figure is more manageable, it’s still higher than last year, when numbers hovered around 6.76%.

The upside of this recent spike? To stay competitive and drive interest, Central NC home sellers have started lowering their prices as a buyer incentive. In the Greensboro/High Point Metro housing market alone, 36.6% of active listings saw a price drop in October 2023.

For prospective first-time buyers, this means the time is right to make a move to one of these thriving cities. As mortgage rates across the U.S. continue to ebb and flow, sellers are becoming increasingly receptive to buyer concessions.

If you’re ready to settle down in the Piedmont, you could have more negotiating power than you realize. However, it’s still important to work with a real estate agent who can help you act quickly when you find the perfect property. Low inventory across the state means competition is up and homes are selling fast. In Winston-Salem, for instance, most listings now go under contract in just eight days, compared to the typical average of 30 to 90 days in a balanced market.

Relocators: Finding the Ideal Property

There are many reasons why someone would want to relocate to Central NC. This area is filled with cultural, educational, and professional opportunities, offering something for everyone in each stage of life. According to one study, Charlotte ranked 16th in the nation for cities with the highest number of new residents in 2023, while Raleigh ranked 20th.

While relocators will be interested in cost and competition levels, they’re also thinking ahead to what the area will hold for them tomorrow, looking at metrics such as:

• Economic and employment opportunities

• Cost of living

Across Central NC, there is sizeable growth projected for city populations, housing opportunities, employment rates, and land use. This movement is especially prominent in cities like Winston-Salem, where major economic momentum is occurring.

According to a recent report, the Twin City is currently outpacing much of the Southern U.S. in employment, with a rate that’s about one point above the state and national averages. Much of this is attributed to the city’s list of 26 current development projects, which recently generated more than 1,800 new jobs and a collective $667 million in capital investments.

These projects include expansions to existing companies as well as the creation of new enterprises with a presence in Winston-Salem. Looking ahead, there are 56 more potential projects in the works, which could generate an additional $7 billion in investments and as many as 11,000 new jobs.

While this kind of accelerated growth is encouraging, it’s not an anomaly. Cities like Charlotte, Greensboro, and Kernersville are also experiencing rapid expansion, with Kernersville expecting a 35% job market increase over the next 10 years and Charlotte seeing more than $1 billion in capital investments in Q3 2023 alone.

With so much activity going on in these local regions, you might think the cost of living would be astronomical. However, research has shown that’s not the case. Instead, studies reveal that most cities throughout Central NC rank refreshingly below the national average, with Winston-Salem ranking 9% lower, Greensboro nearly 16%, and Charlotte at 2%.

Real Estate Investors: Long-Term Income Potential

Though the market will inevitably ebb and flow, real estate has consistently proven to be a solid investment strategy. Whether you’re a seasoned investor or this is your first acquisition, Central NC is a great place to focus your efforts.

The region’s booming economy, steady employment gains, and population growth make it a perfect getaway spot. If you’re ready to add a second property or vacation home to your portfolio, you’ll be most interested in these factors:

• Location

• Long-term property valuation

Location-wise, cities in this region are widely celebrated for their beautiful green spaces, cultural and historical sites, and vibrant downtowns. This makes them the perfect spot to visit, whether you want to stay a while or turn your vacation property into passive rental income.

In one recent report ranking the top 10 cities in the U.S. to own a vacation home, three Central NC cities made the top 10: Charlotte, Winston-Salem, and Durham. While all of these locations boast plenty of hotspots and hidden gems, it’s their earning potential that scored the highest marks. All three of these cities are home to major universities that attract a significant number of short-term renters during the school year, including UNC-Charlotte, Wake Forest University, and Duke University.

In all, there are 13 colleges and universities in the Piedmont alone, with a total enrollment exceeding 60,000. In addition, nine technical and community colleges serve an additional 50,000 students. This means there will always be a steady supply of academics looking for places to stay near campus.

Yet, finding a great location is only the first step in securing a profitable real estate property. Investors also want to know that the value of the unit will increase over time. Unsurprisingly, the region passes this test. This report ranks three Central NC cities among the top six to invest in throughout NC, including:

• Charlotte

• Raleigh

• Winston-Salem

In Charlotte’s Mecklenburg County, property values surged 74% from 2019 to 2023, with the uptick noticeable both in crescent neighborhoods and the city’s expanding outskirts. Similar patterns are occurring in Wake County, where home values in Raleigh increased by 34.8% from 2021 to 2022, and in Forsyth County, where properties are worth 6.1% more today than they were just a year ago.

We’ll Help You Buy a Home in Central NC

Whether you’re a first-time buyer, a relocator, or a real estate investor, Central NC can be an ideal place to set your sights. Current attractions, planned expansions, and reliable growth patterns make this region one of the most sought-after in the state.

If you’re looking for the perfect property in this area, let us know! At Shannon Shown Real Estate, our clients are our top priority, and we’re here to help you turn your real estate dreams into reality.

No matter where you are in your home-buying journey, use the form below and contact us to learn how our team can help. Your next step is a big one, so let’s take it together!