As we look back on 2023, the property management scene in Wilmington has been nothing short of dynamic and exciting! The year was marked by an active real estate market, with both renters and homeowners actively participating in the housing industry.
Rental Rates
One standout trend this year was the rise of the "accidental investor." With increasing interest rates, many homeowners opted to keep their properties and venture into the world of renting. The math just made sense — with rising rental rates, a steady mortgage rate, and manageable payments, converting homes into rentals became an attractive option. Over the past three years, as inventory has increased, rental rates found a new equilibrium, not plummeting but settling into a more predictable pattern. Despite a period of inflation in the U.S., the rental market mirrored this trend, adjusting to pre-COVID levels and offering a viable alternative for those awaiting more favorable buying conditions.
Investors
2023 also witnessed a surge in individuals eager to dip their toes into property investment.
We were able to educate many of these prospective investors, which was exciting for us to see people embrace the possibilities of becoming investment property owners. Beyond the local scene, we observed a fascinating cross-country shift in investment activity. Investors from California, New York, and New Jersey explored the potential in North Carolina, attracted by the prospect of purchasing multiple properties for the price of one in their home states. Military personnel, often stationed in Jacksonville, added another layer to the market dynamics. Many acquired properties during their service, then seamlessly transitioned into the role of landlords upon relocation, showcasing a strategic approach to housing in their military journey.
The Move to Brunswick County
This year we've seen the continued increase of interest in properties in Brunswick County. Individuals looking to retire to the area in 5-10 years are choosing to purchase homes and rent them out until they are ready to move. With the going community and amenities in Leland and the Brunswick County area, many people are choosing to live just outside of Wilmington.
As we reflect on this remarkable year, it's evident that the greater Wilmington area's property management landscape has evolved with the times. Rental rates have found stability, investors have expanded their horizons, and the military market continues to shape the housing narrative. With homes appreciating and exciting prospects on the horizon, we eagerly anticipate what 2024 will bring!
Our end-of-year planning meeting is just around the corner, and we're full of ideas. Here's to an incredible 2023 and the promise of even more success in the coming year!
If there is anything we can do to help you decide if a rental property is right for you or what to consider when hiring a property manager, feel free to reach out to Charlotte at 910-239-1338. We’d be happy to talk with you.