Residential Real Estate
Mar 21, 2022

Recap And Forecast

Sponsored Content provided by Insights On - ,

                                      






We live in a world where our only constant is change and this particularly rings true concerning our local real estate market.

In the first quarter of 2021 appraisals below the contract sale price were a painful reminder that the market was rapidly changing. As we continued to have more cash buyers enter the market, prices were driven up and most cash buyers do not get an appraisal. We also encountered many buyers willing to pay the difference between the short appraisal and the contract price to get into the right house for their family. Once the market adjusted, appraisals became less problematic for buyers and sellers. 

Our local Wilmington real estate market for 2021 was nothing less than remarkable. Some price points saw 20% appreciation where typically year over year appreciation is between 2-4%. Since our market cannot sustain double digit appreciation multiple years in a row, a slightly above average of 3-5% appreciation seems plausible for 2022. 

So, the question at hand-what does 2022 hold for our local real estate market? 

As supply chain issues continue to improve, we should see more new home inventory come on the market. This should help our current challenge of an extremely low inventory of homes to sell. A healthy market has 5-6 months of inventory available, we are currently well under a 2 month supply of inventory in most price points. 

As Wilmington continues to attract out of state buyers due to our coastal lifestyle, mild climate and affordable cost of living we will see our population increase. 

We are the most affordable city on the east coast compared to Charleston, SC and Savannah, GA.

In 2032-Wilmington could find itself more sought after than Charleston, SC due to our river walk with restaurants and shopping, our ever-improving downtown amenities and of course our proximity to local beaches. 
                 

TIPS FOR BUYERS AND SELLERS IN 2022 

If you are seller, you will find yourself with multiple offers when you properly prepare your home for market with appropriate pricing and all deferred maintenance items taken care of, including lawn maintenance. Staging sells and that is still very important even in a hot market. Buyers love eye candy and expect it if they plan to pay top dollar. 

For the buyers out there, being prepared is the wisest thing you can do to win a possible bidding war.
1. Try to go through underwriting with your lender and be approved for a loan, all that is left is to identify a house and have an appraisal completed. 

2. If paying cash, have proof of funds ready to submit with an offer.

3. Be willing to drive until you qualify. If your budget is $300,000 and you need a four bedroom, 3 bath home, you may need to find something outside of Wilmington to meet your family’s budget. 

4. Be willing to remodel. The turnkey homes attract multiple buyers due to the ease of “move in ready.” The ones that need updating typically do not fly off the shelf as quickly. The advantage is a more mature neighborhood, and you can live in a house while you slowly update it.

5. Inventory is out there; we get fresh inventory daily. The right one will show up!

6. Two deposits needed to make an offer- due diligence money and earnest money. Both come off purchase price when a buyer closes on the home.

7. Nonrefundable due diligence money is paid to seller to take the house off the market. During this time, a buyer performs all inspections, appraisals, etc.

8. Earnest Money is held by the listing firm or closing attorney and held in a trust account until closing.

9. Due diligence money is nonrefundable and earnest money is refundable up to 5 pm of the due diligence date.

10. In this changing market, trust your local professionals to help navigate the changing tides of our real estate market. 


 

Other Posts from Insights On

Ico insights

INSIGHTS

SPONSORS' CONTENT
Headshotrosaliecalarco 1182131047

Nominate your Hometown Hero

Unknown 7112393341

Why Feasibility is Paramount to Success

Holly Segur - Lead Intuitively – Corporate Coaching
Tommytaylor ceo unitedway

How Philanthropy Fits Into Your Financial Plan

Tommy Taylor - United Way

Trending News

Haley Promoted To President, CEO Of Wilmington Downtown Inc.

Staff Reports - Jun 18, 2024

Commercial Real Estate Firm Adds Four Partners

Staff Reports - Jun 18, 2024

Women To Watch Awards Finalists Announced

Staff Reports - Jun 18, 2024

Blue Surf Cafe To Celebrate 10th Anniversary, Add Dinner Service

Jessica Maurer - Jun 19, 2024

Proposed Castle Hayne Projects Could Bring Thousands Of Homes, Commercial Space

Emma Dill - Jun 17, 2024

In The Current Issue

Beach Towns Rank On USA Today Top 10 List

Carolina Beach garnered the top spot of the local beaches at No. 2....


Startups Weigh Local Support

What do Wilmington startup newcomers moving for quality of life and proximity to the beach think of the area through a technological and ent...


Pretzel Production Presence

Drink’N Pretzel makes seasoned sourdough pretzel pieces. Officials say the company began with the mission of creating a snack that pairs wit...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season