North Carolina Real Estate Market: When Will My Home Value Return?

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North Carolina Real Estate Market: When Will Home Values Return?

North Carolina homeowners have plenty to be thankful for, including a nice increase in home sales this year.

Sales volume in North Carolina increased 18.9 percent from a year ago, and Wilmington, one of North Carolina’s largest markets, increased 19.8 percent. The homebuyer tax credit was no doubt what this area of the country needed to kick start its economy and housing market.

According to the Fiserv Case-Shiller Analysis, homes values in North Carolina peaked in the third quarter of 2008. Homes values are expected to return to this area of the country in the second quarter of 2013.

Unemployment Numbers Continue Downward

North Carolina can also credit much of its increase in home sales and quick return of home values to the sheer number of new jobs that have been added to its economy over the last few months.

In April, North Carolina unemployment rates dropped to 10.8 percent, which was down from an all-time high of 11.2 percent. The newest numbers are the lowest that unemployment rates have been in North Carolina since April 2009, when the unemployment rate stood at 10.7 percent.

Sales Continue to Buoy Market

Although the forecast for North Carolina for the second half of 2010 is higher interest rates and more foreclosures, the fact of the matter is that home sales continue to be quite brisk, which is a welcomed sign for homeowners everywhere.

If you are a homebuyer, you will enjoy lower home prices and a larger inventory of homes. If you are a seller, you can rest assured knowing that, although home values are declining slightly, that recovery is not far off.

Slow (But Steady) Economic Growth

It is important to point out that North Carolina economic growth is slow but steady, even amidst backlash from foreclosures. The forecasted economic growth for North Carolina for 2010 is 2.2 percent (the national growth average for 2010 is 3.1 percent). Although many economists are quick to point out that although North Carolina is nowhere near where they were five years ago regarding home values, they are headed in the right direction. An economic growth pattern is very welcomed by homeowners, regardless of how slow it is.

With an upward trend of home sales and economic growth, and with home values expected to return to their 2007-2008 numbers in 2013, the tide is definitely turning for North Carolinians.

Largest Cities in North Carolina

• Charlotte
• Raleigh
• Greensboro
• Durham
• Winston-Salem
• Fayetteville
• Cary
• High Point
• Wilmington
• Asheville