The Secret is Out, North Carolina is In

05/04/2007

Americans Rank North Carolina Best Place to Live

People from all over America are discovering what locals have known for ages: North Carolina is "the" destination.

The national consensus is that North Carolina is the most desirable place to live, according to a 2006 poll by Anholt State Brands. Not surprisingly, the study found North Carolina to be America's first choice for the state that makes people feel welcome. North Carolina also ranked highly as a lifestyle destination and was recognized for ideal climate, physical attractiveness, amenities, ease of finding employment, commercial opportunity and excellence in education.

Stunning natural landscapes, a rich history, unlimited recreational activities, and warm southern hospitality are among the state’s ample attractions. North Carolina’s slow pace and high quality of life are especially appealing for those who want more space and less stress.
"I think more and more Americans are concerned with quality of life. They are growing tired of being enslaved to long hours and stressful commutes and jobs just so that they can own a large home in a prestigious community," said financial counselor Eric Tyson, a co-author of real estate and financial "Dummies" guides.

But perhaps what is most enticing is the state’s superior real estate value. As a general rule, buyers can purchase twice the house in North Carolina at half the price- with ocean views.

North Carolina’s low cost of living is a welcome change of pace for those relocating from the west coast. The American Chamber of Commerce Researchers Association 2005-2006 report found that cities in the Carolinas ranked 11.8% below the national average in housing costs. Compare that to California’s housing market, which came in 50% above the national average.

The Real Estate Boom Continues in North Carolina
There’s been a great hullaballo concerning recent real estate trends, with many wondering when and if the so-called real estate bubble will eventually burst.
Dave Robertson addresses this issue in a 2006 Live South article:
"I am often asked if the real estate bubble will burst. First, is there a bubble? If so, what is a bubble? Economy.com says a bubble can occur when an investor purchases an asset solely with the belief that it will rise in price because it did so in the past, not based on fundamental value. Value is an asset's future income discounted into present worth…Real estate's income is rent. It will always have some value…

"…There is not a real estate bubble… The question really is, will you be one of the fortunate people to seize the opportunity and purchase a property while you are young enough to enjoy it before value in your primary home erodes more? Most people… will not because they are waiting for a better time. The best time to buy is when you are ready… Real estate's value, particularly to those of us more than forty years old, should be based on what it brings to our lives. Profit has many measures; great living is my favorite!"
The "bubble" is even less apparent in North Carolina, as the state continues to see a surge in migration. Experts have predicted the population will nearly double in size by 2015, triggering increased values in local real estate markets.

"Ask a North Carolinian about the housing bubble bust, and you might get a quizzical look. Bubble? What bubble? It never happened here. In any conversation about local real estate, they will, however, be happy to tell you about "half-backers." Not a football player, but a name for affluent professionals and retirees who move from the Northeast to Florida and halfway back again, to North Carolina. This migration pattern has contributed to the state's recent population boom and continued home sales growth, even as the U.S. housing market gets whacked due to years of speculation," wrote Maya Roney, Business Week Real Estate Reporter.

"[The population growth] bodes well for real estate, both for real estate investors and practitioners," said Tim Kent, executive vice-president of the North Carolina Association of Realtors (NCAR).

HousingPredictor.com reported that North Carolina has "…been one of the longest lasting states to appreciate, and after appearing it was transforming into a full buyers market, most of North Carolina real estate is still moving upward as the state gains more new residents than ever before."

"We have a migration of people, profitable banks, a good university system, and a strong military presence. When you put all those factors together, it creates a good economic environment, and a strong real estate sector," agreed Harry Davis, chairholder and economist for the North Carolina Bankers Association.
Cited as "an emerging real estate market that meets the needs of baby boomers seeking retirement, vacationers looking for excitement and real estate investors looking to make money," by The June 2006 Real Estate Investment Newsletter, experts found that "when comparing North Carolina to other real estate markets it still comes in as undervalued, which is why it ranks extremely well to prospective residents and baby boomers seeking to get the most for their money in retirement destinations. It is the savvy investor that will benefit from the explosive growth and demographic trends taking place in North Carolina…"
The Boomer Effect

Vacation and investment home sales have been largely impacted by the baby boomers, who have become accustomed to a higher standard of living, and they are not about to change in retirement. Boomers want home ownership in the most coveted places. And they are just getting started.

The majority of boomers turn 50 in 2007 with the last of the generation turns 50 in 2014. Economist David Weil predicts boomers will buy second homes until 2023 (a boomer born in 1964, the last year of the baby boom generation, would be 59 in 2023).

Today, boomers are the largest group of homeowners and research indicates they see second home ownership as a smart investment opportunity. As boomers begin to consider real estate investments as part of their retirement plans, the U.S. Census Bureau predicts second home purchases for boomers to reach 6.4 million units by 2010, up from 5.5 million units purchased in the 1990’s.
Condominiums hold a special appeal to this generation that seeks low- maintenance and a wealth of quality amenities.

"Condos still have plenty going for them -- namely, 76 million baby boomers. You know the demographic drill by now: As they become empty-nesters and retirees, they'll sell their rambling homes in the burbs and move into yard work-free condos (or at least purchase them as second homes)," reported CNN Money.