Real estate market trends in 2014 land sales show a recovery is slowly hitting the Old North State, buoyed by high-growth population
Real estate trends in 2014 land sales in North Carolina have stabilized (whew). As one expert notes, the leveling of sales prices and buyer’s willingness to pay have sorted themselves out “as both parties mediate new accords in the intrinsic value of real property in today’s economic climate.” Read: you get what you agree/negotiate in the end.
- Lending is beginning to loosen. When the housing bubble burst in 2007, owners saw future profits on their property slip away. Buyers, on the other hand, entered a somewhat hostile climate in which banks were unwilling to lend without sterling guarantees of a buyer’s ability, and willingness to pay – the latter a result of homeowners who simply walked away from “underwater” mortgages.
- Population growth in North Carolina continues. According to Drexel University’s College of Information Science and Technology, North Carolina is the 10th most populous state with more than 9.5 million people. Considering the US is growing at its most sluggish pace since WWII, NC’s population grew by 18% during the years of 2000 and 2010. “The good news is that North Carolina remains and extraordinarily attractive place to live and raise a family and do business,” said Ferrel Guillory, director of the Program on Public Life at UNC-Chapel Hill.
- Home sales and prices will continue to increase – slowly. In the post-recession, lingering high-unemployment era of North Carolina real estate, prices for condos and townhouses have risen slightly, from $191,000 to $197,000. In the commercial real estate market, office building leases and construction are finally turning the corner and are beginning to show signs of recovery. According to Avison Young (formerly Grubb & Ellis | Thomas Lindermann Graham) in their 2013 annual commercial real estate industry report, North Carolina commercial property leases and sales are increasing in volume and are expected to hold or increase slightly in pricing over the following year.
- The same is true for land and farm prices across the U.S. A sampling of properties being sold in the last couple of years, ranging from ¾ of an acre to more than 350 acres, shows that even though they commanded less than pre-recession prices, they were still more than they were thirty years ago, when farm and land prices plummeted more than 25 percent. Overall, North Carolina farm and ranch land values rose 6.4 percent in 2011, according to the National Agricultural Statistics Service, with prices continuing to trend slightly upward during 2012 through 2013. This trend is expected to continue in 2014.