Wilmington housing market remains stronger than much of the South despite affordability challenges, economist says

WILMINGTON, NC (WWAY) — While high mortgage rates and affordability concerns continue to cool much of the nation’s housing market, Wilmington remains one of the stronger real estate markets in the South, according to a Realtor.com economist.

Joel Berner, senior economist for Realtor.com, said national housing trends have shifted in favor of buyers as sellers adjust their expectations after years of elevated home prices.

“The biggest thing that’s happening right now is that seller expectations are adjusting,” Berner said. “Buyers are really constrained by affordability problems. With a 6.5% mortgage rate, there’s just not as much they can do.”

Nationally, listing prices fell 2.5% year-over-year in June as higher borrowing costs reduced buyer demand. Berner said many sellers are now listing homes at more competitive prices instead of starting high and making repeated price cuts.

For buyers, that means more options and less pressure to make immediate decisions.

“If you’re a buyer, you should be taking your time and understanding your budget,” Berner said. “Know what you can afford at these current rates and really be armed with as much information as you possibly can.”

Berner also noted that falling rental prices nationwide have reduced the urgency for some first-time homebuyers.

“Nationally, rent levels have been falling for almost three years on a year-over-year basis,” he said. “A lot of first-time buyers are comfortable remaining renters.”

For homeowners looking to sell, Berner said pricing a home realistically has become increasingly important.

“If you’re a seller, you might be looking around and wondering why you’re not getting more bites on your home,” he said. “You need to come to the table at a price point that’s competitive and meet buyers where they are.”

Although August typically marks the end of the peak home-buying season, Berner said the approaching fall market can create opportunities for buyers.

“We at Realtor.com always say that the best time to buy a home is in the early fall,” he said. “You’re seeing homes that have sat on the market all summer, probably getting price reductions, and sellers starting to worry a little bit about whether they’ll be able to make the sale this year.”

Wilmington remains an exception

Despite broader market slowdowns across much of the South, Berner said Wilmington has continued to see stronger demand because housing inventory has not fully recovered since the COVID-19 pandemic.

“Wilmington is behaving differently than the rest of the South,” Berner said. “Inventory hasn’t actually recovered fully from the pandemic-era shock.”

He said the limited number of homes for sale has helped keep prices elevated compared with many other metropolitan areas.

“With increased demand from buyers, there’s a little bit more pressure on prices to remain high than there is in a lot of the rest of the country,” Berner said.

That means sellers in the Wilmington area may still have an advantage over those in many other Southern cities, even as the market begins to cool seasonally.

“For sellers, you’re probably in a better spot than a lot of people in the state, the South or the rest of the country,” Berner said.

For buyers in the Cape Fear region, Berner recommends being financially prepared and ready to act when the right home becomes available, since competition remains stronger locally than in many other markets.