Despite a national housing market that is still struggling to fully rebound, local industry experts say that real estate for sale in the Carolinas is more attractive than ever.
According to the Charlotte Observer, real estate mogul Pat Riley was bullish in his support of the surrounding real estate market, adding that it continues to thrive in spite of several obstacles.
Riley, who is the CEO of Charlotte-based real estate company Allen Tate Cos., made the comments during his speech at a luncheon event organized by the Hood Hargett Breakfast Club. While optimistic, he was also careful to note that the Carolinas still have some work to do in order for the local housing market to reach its full potential.
“We do have some challenges over the horizon that we’re trying to deal with and figure out,” said Riley.
Among the issues that Riley noted were a “huge undersupply” of homes throughout the region, rising prices, and tighter mortgage rules that were imposed on the heels of one of the worst housing crises in national history.
In the face of these challenges, Riley went on to say that home sales in the Carolinas are soaring. This is largely due to the increase of millennials looking to buy quality homes, as well as an influx of prospective home buyers from other states who value the attractive weather and amenities available throughout the region.
According to The M Report, a primary reason that many still struggle to find homes outside the Carolinas is a dearth of “affordable” mortgages. The federal government considers a mortgage to be “unaffordable” when monthly mortgage payments exceed 31% of the homeowner’s income.
Falling in line with Riley’s remarks, statistics from research firm Trulia found that the majority of markets where unaffordable houses become affordable over the life of a 30-year mortgage are found on the East Coast, namely in states like the Carolinas, Connecticut, and Rhode Island.
In fact, the research went on to say that an average mortgage in South Carolina beginning at 17% of the homeowner’s income will reach just 6.6% by the end of the loan’s lifespan, which is attributed to the state’s strong income growth.
Riley added that his company is on pace to have about 22,000 closed transactions this year in the Carolinas, up from 19,700 last year and a post-crisis low of 15,900.
“This shows you how healthy we are in North and South Carolina,” he said. “Overall, compared to where we were, we’re in heaven.”