The aspect of supply and demand is quite critical in real estate because it is not easy to quickly create properties.

Supply and demand determine the real estate market conditions. Home costs have been climbing and they continue to climb in North Carolina. Some experts are stating that home prices have increased by over 18% since 2020.

Let us study this in a bit more depth.

Single Family Homes Are Turning Over Quickly

Single-family homes are being sold at lightning speeds. Investment firms are in an excellent position as they own a good amount of real estate. This includes both homes and apartments. This is specifically true for areas such as North Carolina.

Large corporations can swoop in and purchase property to utilize as rentals. Individuals on a budget may not be able to afford to go up against a corporation that can outbid individuals by tens of thousands of dollars.

Investors Own Large Portions of Real Estate in North Carolina

Investors own a large chunk of real estate because market conditions are conducive to this. Interest rates have been low and demand for rentals is high. These conditions are not a result of the pandemic alone. The issue is the lack of houses.

Housing production decreased between the years 2001 and 2020.

As a result of this, there are fewer homes available. To keep up with current demand, at least two million houses would need to be built per year over the next decade. There are supply chain issues currently which means that while houses are being built, they are not being built quickly enough. Add to this there are not enough employees available for construction firms to meet demands for housing construction.

As a result of these conditions, houses are being purchased sight unseen for thousands above the asking price.

It Requires More Funds to Participate

Individuals with a budget of $600k are having to purchase sight unseen. This is because many homes are being sold before being active on websites for houses.

These prices are not going to change anytime soon as many technology companies are moving to North Carolina. These technology companies include companies such as Apple, Google, Micron, and plenty more.  

Rent prices and housing prices have caused some individuals to resort to living in campers at a campground.    

Many individuals look for a while and then realize that houses are being snatched up instantly after hitting the market. Some of these houses do not even make it to the market. Often the sellers receive multiple offers above the asking price.  

If you are looking for a house in North Carolina, all hope is not lost. Ensure that you look early and have extra money on hand to offer above the asking price. Taking advantage of these steps as well as plenty of research will ensure that you too can own a home in North Carolina.