The news is filled with articles about a recession, rising interest rates, and a housing bubble. If you don’t have your nose in the market daily, it almost sounds like the market is on the brink of collapse. And that can make buyers believe that real estate isn’t a good investment right now. But that just isn’t true.
Most people know that the Wilmington real estate market has been very hot. Like other areas of the United States, we’ve seen just about two year’s worth of bidding wars and low inventory. But now we are seeing a shift back towards a more balanced real estate market.
See Melanie’s weekly update on the Wilmington real estate market on YouTube.
To break it down, local inventory is loosening, buyers aren’t paying as much over asking price, and we’re seeing two things we haven’t seen in quite some time: price reductions and builder incentives.
But these aren’t signs of a collapse. This is something called “normalizing”. While change often feels unsettling, it’s actually a good thing. Here are 3 reasons why you should buy a home in today’s shifting market.
As Buyer Demand Moderates, You May See the Intensity of Bidding Wars Ease
The good homes are still going, just not as fast. In the past two years, we’ve seen many homes go under contract less than day after hitting the market. Now, it’s more like a few days to a week – if they are not overpriced.
Yes, bidding wars are still happening, because there are still more buyers than there are houses. However, the average number of offers on a single property are going down. Until our inventory gets closer to pre-pandemic levels, there’s going to be buyer competition.
Fewer Buyers are Bidding Over Asking Price, But It’s Still a Competitive Market
As bidding wars decrease, so do higher priced offers. Buyers are less willing to pay well over asking price, because there are other homes on the market. Homes that aren’t priced competitively are sitting on the market for weeks. However, homes that are priced right and are located in the lowest price ranges are still seeing competition, especially in the Wilmington real estate market, which has seen an increasing demand for affordable housing.
Housing Inventory is Increasing
…So more options are available for your home search. This is music to buyers’ ears, especially to those who need to move and buy a home in the next few months.
Also, keep in mind that even though mortgage interest rates have risen, they are still historically good. During the 1990s, the average mortgage interest rate was 8.12%. In the 1980s, it was 12.7%. In the 1970s, it was 8.86%.
At the time of this post, a 30-year fixed-rate mortgage is 6.104%.
If you have any questions or concerns about purchasing a home in the Wilmington real estate market (including New Hanover County, Pender County, Brunswick County, and Onslow County), please don’t hesitate to reach out to us. There is absolutely no pressure to purchase. We are happy to answer your questions so you can decide if it’s in YOUR best interests to buy a home now.