Two of the toughest places to buy a home in 2023 are in North Carolina

Photo byDillon KyddonUnsplash

When you think of competitive real estate markets, places like San Francisco, Los Angeles, and Manhattan come to mind. But these days, the picture looks a little different.

Redfin recently released a report on the most competitive real estate markets in the country as of February 2023 based on four factors:

• Number of competing offers
• Waived contingencies
• Sale-to-list ratio
• Number of days on the market

One look at the top metro areas on this list, and you know things have taken a turn in the market. The top city is Los Alamos, New Mexico with a score of 96 out of a possible 100.

A little further down the list, two of those cities are in North Carolina

Which cities in North Carolina scored the highest?

Just outside of the top 10, at numbers 11 and 13 respectively, sit Fayetteville and Jacksonville. Their scores are 84 out of a possible 100, indicating that they are highly competitive markets.

Quite a bit further down the list is Sanford, NC, with a score of 80.

Why are these the state's most competitive markets?

When you think of competitive markets, you think of large cities people are moving to for high-powered career opportunities. But another phenomenon is also in play - the availability of "inventory," aka houses for sale, for prospective buyers.

Redfin says: "If it feels like there aren’t enough homes on the market for the people who want to buy one, it’s because there aren’t. Even though elevated mortgage rates continue to dampen homebuying demand, low inventory means the homes that are for sale are going fast in some parts of the country."

Both of these cities are on the rise, potentially as a result of people being priced out of larger cities like Raleigh-Durham. In comparison, these areas are still (relatively) affordable.

Perhaps not for much longer. The median sale price of a home in Fayetteville has increased 17.1% since last year, while in Jacksonville, the increase is 25.4%.

Fayetteville is prioritizing providing better housing for its lower-income residents. In 2020, the city was awarded a grant to subsidize more affordable housing.

What does it mean?

While the pandemic's white-hot real estate markets have slowed, it continues to be a seller's market in certain areas. However, for those who are selling, be aware that it might take some time to find the ideal new home.