As we head into 2024, the real estate market in North Carolina is poised for some significant changes. From shifting interest rates to changing demographics, there are a variety of factors that will impact the market in the coming year. As a real estate investor, it’s important to stay informed and up-to-date on these trends to make informed decisions about your investments. Here are ten things North Carolina real estate investors need to know about the real estate market as we head into 2024.
1. Interest Rates Are Expected to Rise
After years of record-low interest rates, many experts predict that rates will begin to rise in 2024. This could have a significant impact on the real estate market, as higher interest rates can make it more difficult for buyers to afford homes. Keep an eye on the Federal Reserve’s decisions on interest rates. Higher rates can affect borrowing costs, potentially impacting property demand. As an investor, it’s important to keep an eye on interest rates and factor them into your investment decisions when utilizing funding to facilitate the purchase.
2. Millennials Will Continue to Drive the Market
Millennials are the largest generation in history, and as they continue to age into their prime home-buying years, they will continue to drive the real estate market. This generation is known for valuing experiences over possessions, and as such, they are often drawn to urban areas with access to restaurants, nightlife, and cultural events. As a real estate investor, it’s important to keep this demographic in mind when selecting properties. When appealing to millennial tenants, be sure to keep proximity to restaurants, cultural activities, and shopping in mind.
3. Technology Will Play an Increasingly Important Role
Technology is rapidly changing the real estate industry, and this trend is expected to continue in 2024. From virtual tours to online mortgage applications, technology is making the home-buying process faster, more convenient, and more transparent. As an investor, it’s important to stay up-to-date on these changes and leverage technology to streamline your investment processes. Technological advancements, like virtual tours, AI-driven property evaluations, and blockchain in real estate transactions, continue to impact the industry. By using the right technology, North Carolina real estate investment can be accessible to anyone.
4. Supply and Demand Will Remain a Key Factor
Supply and demand is a fundamental principle of economics, and it will continue to be a key factor in the real estate market in 2024. Monitor the trajectory of home prices in different regions. High demand and limited supply can lead to increased prices, while oversupply might result in stagnation or price drops. Rental demand can be influenced by various factors, including economic conditions and demographics. Understanding rental trends helps evaluate investment potential. As demand for homes in North Carolina continues to grow, it’s important to keep an eye on supply. If there are not enough homes on the market to meet demand, prices will continue to rise.
5. Urbanization Will Continue
The trend towards urbanization is expected to continue in 2024. As more and more people flock to urban areas in search of jobs, entertainment, and cultural experiences, demand for urban properties will continue to increase. The ongoing effects of remote work may continue to influence housing preferences and migration patterns, impacting demand in certain areas. The COVID-19 pandemic has had a substantial impact on the real estate market. Consider how ongoing developments, such as vaccination rates and economic recovery, may influence the market in 2024. As an investor, it’s important to keep this trend in mind when selecting properties.
6. Environmental Concerns Will Become More Prominent
Environmental concerns are becoming increasingly important to home buyers, and as such, they will become more prominent in the real estate market in 2024. From energy-efficient features to sustainable building materials, green homes are becoming more and more popular. Growing awareness of climate change may influence preferences for eco-friendly properties and sustainable building practices. As an investor, it’s important to stay up-to-date on these trends and consider incorporating green features into your properties.
7. The Importance of Location Will Remain Strong
The old saying “location, location, location” will remain as true as ever in 2024. Buyers are often willing to pay a premium for properties in desirable locations, such as those with good schools, easy access to transportation, and proximity to amenities. Economic growth, job markets, and population shifts can greatly influence real estate markets in specific regions. As an investor, it’s important to keep location in mind when selecting properties.
8. Political and Economic Uncertainty Will Continue
Political and economic uncertainty has been a hallmark of the past few years, and this trend is expected to continue in 2024. From changes in tax policy to geopolitical tensions, there are a variety of factors that could impact the real estate market. Low housing inventory has been a significant trend in recent years, driving up prices. Changes in inventory levels can impact pricing and competitiveness. Keep an eye on any legislative changes or new regulations affecting real estate, as these can impact investment strategies and property values. As an investor, it’s important to stay informed and to have a solid contingency plan in place in case of unexpected events.
9. The Rise of Co-Living
Co-living is a growing trend in the real estate market, particularly among millennials. Co-living spaces are designed to offer affordable housing and a sense of community, and they often feature shared living spaces and amenities. Understand the balance between supply and demand in the housing market. A shortage of housing can drive prices up, while an oversupply may have the opposite effect. As an investor, it’s important to keep this trend in mind when selecting properties and to consider incorporating co-living features into your properties.
10. The Importance of Flexibility
Finally, flexibility will be important in 2024. As the real estate market continues to evolve, it’s important to be able to adapt to changing trends and circumstances. This may require being open to new types of properties, new investment strategies, and new technologies. By staying informed about these factors and regularly analyzing market data, real estate investors can make more informed decisions and adapt their strategies to the evolving landscape of the industry.
The real estate market in North Carolina is poised for some significant changes in 2024. By staying informed and up-to-date on these trends, real estate investors can make informed decisions and position themselves for success in the coming year. If you are looking for investment properties for sale in North Carolina, Tarheel Home Buyers can help. Reach out to our team to learn more about what’s currently available! (984) 206-3532