SOUTHEAST NC — The local housing market ended 2021 with record-breaking sales, though shortages continued to plague buyers. It’s a trend brokers expect to continue into 2022, with supply shortages driving costs up.
According to a publication by Cape Fear Realtor sales prices for single family homes and condos/townhouses in the Tri-County region hit new highs last year. The median home cost $325,000, up 14% from $285,000 in 2020. Still, prices remain below the national average, according to data Broker.com, which listed the median cost of a home as $375,000.
However, it was the biggest year on the books for the luxury housing market. Over 550 homes valued at $1 million or more have been sold in the Tri-County area for a total of nearly $1 billion.
According to a, Wilmington continued to rank in the top 3 of desired relocation locations National Relocation Study. In 2020, the port city ranked first in immigration with 79% (emigration 21%) and ranked third in 2021 with similar statistics: 80% immigration and 20% emigration.
An influx of new residents arriving in the area and local buyers looking to change residence, coupled with fewer homes being built due to supply shortages and a drop in sellers, has resulted inventory down. New listings jumped from 934 in 2020 to 851 in 2021, with homes spending an average of 33 days on the market last year, compared to 65 days last year.
Throughout 2021, Cape Fear area realtors sold less than a month’s inventory — 0.8 to be precise — the lowest number in Cape Fear Realtors’ 16-year database, according to a Port City report Daily from April.
At the national level, stocks decreased by 6.1% compared to December 2020. Sellers were trading at rates 12.9% below December 2017-2019 levels, Cape Fear Realtors noted, citing data from Broker.com.
“In December we saw a typical seasonal slowdown in closed and pending sales due to the holiday madness,” Cape Fear Realtors President said Ea Ruth said in a press release.
Lower inventories impacted closed sales, which fell 11.4% to 1,160 from 1,309. Pending sales also fell 8.8% from 934 to 831.
According to a statement from Cape Fear, experts expect the trend of “strong buyer demand and inventory shortages to be likely to continue this year”. Estate agents.
Mortgage rates are also rising. In January 2021, a 30-year fixed rate was around 2.65%, the lowest on record. Since last week Freddie Mac reported that it rose to an average of 3.45%.
“Despite the challenges of rising prices, limited inventory and surging sales, market activity maintained a brisk pace throughout 2021 and buyer demand continues as more sellers plan to enter the market,” Ruth added in the press release.
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