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While most U.S. homeowners are sitting on a mountain of home equity after years of rising house prices, a number of mortgage holders in pockets of North Carolina are underwater on their loans. 

Why it matters: That means these folks owe more on the mortgage than their home is worth, which puts them in a horrendous financial situation if they need to sell their house, Axios' Brianna Crane writes. 

Zoom in: Rocky Mount had some of the highest percentages in the state of homeowners with underwater mortgages as of the first quarter of this year, per Attom. 

One ZIP in the eastern part of the town clocked a rate of nearly 11%.  

ZIP codes in Henderson — near the Virginia border — and Lumberton — just south of Fayetteville — had the second and third highest rates, at 9 and 7%, respectively. 

Data: Attom; Map: Tory Lysik/Axios Visuals

Yes, but: While the South has some of the highest shares of underwater mortgages, North Carolina is an outlier in the region: just 2.3% of homeowners statewide are upside down on their mortgages.

Many of the beach and mountain towns of North Carolina have some of the highest rates of equity-rich homeowners: Oak Island, Emerald Isle and Nags Head have the most, with rates all above 67%.

Reality check: After the housing crisis of 2008 one in four homes with mortgages were underwater.

Unemployment was high in that recession and many people who couldn't pay back their loans by selling their house were forced into foreclosure or short sales.

Right now, unemployment in the U.S. is low — and the economy is strong.

The bottom line: If the labor market or economy takes a turn, underwater homeowners are more at risk.

With today's high mortgage rates, the most financially secure people are buying in cash, Redfin chief economist Daryl Fairweather says.

Recent buyers who took out a mortgage likely have less cash to fall back on.

Where N.C. mortgage holders are underwater on their home loans

While most U.S. homeowners are sitting on a mountain of home equity after years of rising house prices, a number of mortgage holders in some pockets of North Carolina are underwater on their loans.

Housing

Map showing the share of mortgaged North Carolina homes considered seriously underwater in Q1 2024. This is defined as 25% or more owed above the total estimated market value of the property. The state average is 2.3%.

While most U.S. homeowners are sitting on a <a class="gtmContentClick" data-vars-link-text="mountain of home equity" data-vars-click-url="https://www.axios.com/2024/05/08/homeowners-wealth-rich-rents-increase" data-vars-content-id="22c10d39-47a8-4ac7-ba3d-c407f6dc6852" data-vars-headline="Where N.C. mortgage holders are underwater on their home loans" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/05/08/homeowners-wealth-rich-rents-increase" target="_self">mountain of home equity</a> after years of rising house prices, a number of mortgage holders in pockets of North Carolina are underwater on their loans. Why it matters: That means these folks owe more on the mortgage than their home is worth, which puts them in a horrendous financial situation if they need to sell their house, <a class="gtmContentClick" data-vars-link-text="Axios&#x27; Brianna Crane writes" data-vars-click-url="https://www.axios.com/2024/06/10/home-mortgage-debt" data-vars-content-id="22c10d39-47a8-4ac7-ba3d-c407f6dc6852" data-vars-headline="Where N.C. mortgage holders are underwater on their home loans" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/06/10/home-mortgage-debt" target="_self">Axios&#x27; Brianna Crane writes</a>.

News

Raleigh-based designer Maggie Dillon was recently recognized by elite interior design magazine House Beautiful in its annual Next Wave Class of 2024.

Why it matters: The list highlights the big up-and-coming names in interiors across the U.S. There are only 13 spots and two North Carolina designers received a nod.

Dillon's delightful approach to design is all about feeling good in your home — and it shows. Think floral wallpaper, purposeful pops of color, whimsy. 

I've followed her online for years and even photos of her spaces bring me joy! 

What's next: I had the chance to ask her a few questions about her work.

Describe your design style in three words.

What's one home design trend you're loving right now?

I try not to dig too into trends, but I do typically take on a "more is more" approach.

Best local spot for home decor or furniture?

All over: travel, design publications, social media, art and fashion trends!

Mind sharing a little about your offerings?

We are a full-service interior design firm that welcomes further conversation from anyone inquiring. 

further conversation from anyone inquiring

Meet the Raleigh designer making waves across the U.S.

Raleigh-based designer Maggie Dillon was recently announced as a member of House Beautiful's Next Wave Class of 2024.

two vertical photos side by side on a blue background

Photos: Portrait by MDI Klaynman; interior shot by Anna Routh Barzin

Real estate

Raleigh-based designer Maggie Dillon was recently recognized by elite interior design magazine House Beautiful in its annual <a class="gtmContentClick" data-vars-link-text="Next Wave Class of 2024" data-vars-click-url="https://www.housebeautiful.com/design-inspiration/a60511062/next-wave-2024/" data-vars-content-id="30bbc29e-75ea-4658-832c-561612172b08" data-vars-headline="Meet the Raleigh designer making waves across the U.S." data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.housebeautiful.com/design-inspiration/a60511062/next-wave-2024/" target="_blank">Next Wave Class of 2024</a>.Why it matters: The list highlights the big up-and-coming names in interiors across the U.S. There are only 13 spots and <a class="gtmContentClick" data-vars-link-text="two" data-vars-click-url="https://www.axios.com/local/charlotte/2024/05/29/interior-designer-ashley-ross-house-beautiful-charlotte-nc" data-vars-content-id="30bbc29e-75ea-4658-832c-561612172b08" data-vars-headline="Meet the Raleigh designer making waves across the U.S." data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/charlotte/2024/05/29/interior-designer-ashley-ross-house-beautiful-charlotte-nc" target="_self">two</a> North Carolina designers received a nod.

Real Estate

The semi-annual EDIT Sale starts this Thursday in Raleigh. Expect a warehouse filled with deeply discounted designer clothing and accessories. 

The big picture: The popular sale will feature brands like Staud, Zimmerman, Veronica Beard, Nili Lotan, Ganni and Natalie Martin. 

Jeans are $70 a pair; day dresses are $115-$285; dinner dresses are $125-$550. 

Zoom out: The event started in Charlotte back in 2016 between friends Stephanie Bissell, Shelly Landau, and Jennifer Shelton.

Back then, it was more of a clothing swap between close friends in Jennifer's garage. In recent years, the trio has expanded their pop-ups to Raleigh and Dallas.

If you go: There's one large shared dressing room, so dress to your comfort.

No handbags, coats or strollers are allowed. 

The details: The EDIT Sale starts Thursday, Nov. 15, and runs through Sunday, Nov. 17.

The address is 1020 E. Whitaker Mill Road. 

clothing rack with colorful sweaters and dresses in raleigh nc

Get discounted designer clothing by brands like Zimmerman and Ganni this week in Raleigh

The semi-annual EDIT Sale starts this Thursday. Expect an East End warehouse filled with deeply discounted designer clothing and accessories.

The <a class="gtmContentClick" data-vars-link-text="semi-annual EDIT Sal" data-vars-click-url="https://www.axios.com/local/raleigh/2024/06/03/edit-designer-consignment-sale-raleigh" data-vars-content-id="7683e222-3483-49bf-b99f-4d3082f2b9fe" data-vars-headline="Get discounted designer clothing by brands like Zimmerman and Ganni this week in Raleigh" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/raleigh/2024/06/03/edit-designer-consignment-sale-raleigh" target="_self">semi-annual EDIT Sal</a>e starts this Thursday in Raleigh. Expect a warehouse filled with deeply discounted designer clothing and accessories. The big picture: The popular sale will feature brands like Staud, Zimmerman, Veronica Beard, Nili Lotan, Ganni and Natalie Martin.

Things to Do

The National Association of Realtors recently agreed to settle a big lawsuit and change the way real estate agents get paid — from effectively a standard commission to something truly negotiable.

Why it matters: The seemingly small change, which a court preliminarily approved in April, is causing major confusion.

The big picture: If approved, come summer, agents won't be able to make offers of compensation in the Multiple Listing Service, the database where real estate agents post homes for sale.

How it works (currently): Sellers and their broker negotiate a fee, and that broker decides how much they want to share with the buyers' agent.

That number is advertised in the MLS listing, and the seller pays both agents from the home sale earnings.

Many are concerned this causes buyers' agents to steer clients toward homes that offer them higher commission.

Buyer agreement forms are already required in North Carolina.

Generally, these forms help buyers better understand which services their agent will provide — and how much it'll cost.

Yes, but: If the settlement is approved, offers of compensation will not be listed in MLS. Buyers and their broker will negotiate how much the broker should earn — and how they'll get paid, antitrust lawyer Brian Schneider says.

Increased transparency around agent profits could lead to more competition, he says.

Between the lines: Agents who can't communicate their value won't prosper.

Yes, but: Many are worried about cash-strapped first-time buyers. Most can't pay their agent out of pocket, but they'll be "financially slaughtered" without representation, former Zillow exec and Tomo cofounder Greg Schwartz says.

For that reason, sellers aren't entirely off the hook.

Buyers' agents aren't going to work for free.

Sellers will likely offer concessions to cover buyer agent costs, Faron King, a VP with NAR, tells Axios.

King, who operates brokerages in Georgia and North Carolina, says some sellers have already tried cutting buyer commissions to keep more cash in their pockets. 

Ultimately, forgoing a commission split could yield fewer offers, he says. It's an option, of course, but it may not save sellers as much as they'd hope. 

What's next: "[Real estate] is in the greatest state of disruption I've seen in the last decade-plus," Schwartz says.

Schwartz and other observers see opportunities for new business models to emerge, from paying an agent hourly to ChatGPT-like agent bots.

He expects minimal innovation in the short term, but radical change over the next five to seven years.

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How the big real estate settlement could change N.C. real estate

The National Association of Realtors recently agreed to settle a big lawsuit that questions how real estate agents are paid — and who foots the bill.

Illustration of a set of keys with a percent sign keychain

The National Association of Realtors recently agreed to <a class="gtmContentClick" data-vars-link-text="settle a big lawsuit" data-vars-click-url="https://link.axios.com/click/35397289.27384/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjQvMDMvMTgvbmFyLXNldHRsZW1lbnQtaG9tZS1idXlpbmc_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3Nsb2NhbF9yYWxlaWdoJnN0cmVhbT10b3A/5d8bef5ddabb3400443df688B06eb54bd" data-vars-content-id="98e2226e-e00e-469b-95db-7eb516c2ad7b" data-vars-headline="How the big real estate settlement could change N.C. real estate" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/35397289.27384/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjQvMDMvMTgvbmFyLXNldHRsZW1lbnQtaG9tZS1idXlpbmc_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3Nsb2NhbF9yYWxlaWdoJnN0cmVhbT10b3A/5d8bef5ddabb3400443df688B06eb54bd" target="_self">settle a big lawsuit</a> and change the way real estate agents get paid — from effectively a standard commission to something truly negotiable.Why it matters: The seemingly small change, which a court <a class="gtmContentClick" data-vars-link-text="preliminarily approved" data-vars-click-url="https://link.axios.com/click/35397289.27384/aHR0cHM6Ly93d3cuY25uLmNvbS8yMDI0LzA0LzI0L2hvbWVzL25hci1zZXR0bGVtZW50LWJyb2tlci1jb21taXNzaW9ucy1hcHByb3ZhbC9pbmRleC5odG1sP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zbG9jYWxfcmFsZWlnaCZzdHJlYW09dG9w/5d8bef5ddabb3400443df688Bcd8d2b88" data-vars-content-id="98e2226e-e00e-469b-95db-7eb516c2ad7b" data-vars-headline="How the big real estate settlement could change N.C. real estate" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/35397289.27384/aHR0cHM6Ly93d3cuY25uLmNvbS8yMDI0LzA0LzI0L2hvbWVzL25hci1zZXR0bGVtZW50LWJyb2tlci1jb21taXNzaW9ucy1hcHByb3ZhbC9pbmRleC5odG1sP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zbG9jYWxfcmFsZWlnaCZzdHJlYW09dG9w/5d8bef5ddabb3400443df688Bcd8d2b88" target="_self">preliminarily approved</a> in April, is causing major confusion.

The share of institutional investors who bought Raleigh-area homes shrank last year, mirroring a national trend, according to new data from the real estate firm ATTOM.

Why it matters: Institutional investors — any non-lending group that purchased at least 10 properties in a calendar year — have backed off the last three years as housing affordability has plummeted, the report shows.

Zoom in: Across North Carolina, 7% of home sales were to an institutional investor last year, down from 7.4% in 2023. 

In Raleigh, the share of investor sales went from 8.6% to 7.8%. 

They did, however, increase in the Durham metro area, going from 6% to 6.6%. 

Zoom in: Investors bet on growth. They want to see strong population and job growth, solid rental yields, landlord-friendly regulations, affordability, and long-term appreciation potential, ATTOM CEO Rob Barber tells Axios.

But for the past few years, large investors have been slowing down their activity. 

In the third quarter of last year, just 0.3% of sales went to large institutional investors — those that own more than 1,000 properties — the lowest share in seven years, if the first quarters of the pandemic were stripped out, according to The Wall Street Journal. 

Institutional investors are signaling that homes are priced too high, while individuals might be willing to pay more if the home is a right fit, The Journal noted. 

Yes, but: Institutional investors have been criticized in recent years for making it harder for families and individuals to buy homes. 

The bottom line: High home prices and high interest rates are even discouraging institutional investors from buying houses. 

Data: ATTOM; Note: Among states with at least 100 institutional investor sales; Map: Kavya Beheraj/Axios

North Carolina's housing market is even becoming too expensive for investors

Across North Carolina as a whole, 7% of home sales were to an institutional investor last year, down from 7.4% in 2023.

Charlotte, North Carolina, Myers Park, Ridgewood Avenue, large brick mansion with Available For Sale sign. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)

Photo: Jeffrey Greenberg/Universal Images Group via Getty Images

The share of <a class="gtmContentClick" data-vars-link-text="institutional investors" data-vars-click-url="https://www.axios.com/2022/02/18/investors-homes-wealth-families" data-vars-content-id="dcc8d060-aceb-429c-b064-294044ebfe6d" data-vars-headline="North Carolina&#x27;s housing market is even becoming too expensive for investors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/02/18/investors-homes-wealth-families" target="_self">institutional investors</a> who bought Raleigh-area homes shrank last year, mirroring a national trend, according to new data from the real estate firm <a class="gtmContentClick" data-vars-link-text="ATTOM" data-vars-click-url="https://www.attomdata.com/news/most-recent/2024-year-end-home-sales-report/" data-vars-content-id="dcc8d060-aceb-429c-b064-294044ebfe6d" data-vars-headline="North Carolina&#x27;s housing market is even becoming too expensive for investors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.attomdata.com/news/most-recent/2024-year-end-home-sales-report/" target="_blank">ATTOM</a>.Why it matters: Institutional investors — any non-lending group that purchased at least 10 properties in a calendar year — have backed off the last three years as housing affordability has plummeted, the report shows.

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Boulder-area HOA fees are getting more common — and costly

Boulder

A bar chart showing the share of home listings subject to HOA fees, by metro area, in 2024. 40.5% of listings in the U.S. had HOA fees. The metro area with the highest rate was Myrtle Beach, S.C., at 84.8%. The area with the lowest was Charleston, S.C., at 0.2%. 57.5% of Boulder-area listings had HOA fees.

Share of home listings that are subject to HOA fees, by metro area

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Price gap between new and existing homes narrows in San Antonio

San Antonio

A line chart showing the average listing price of San Antonio-area homes. In January 2025, it was $328k for existing homes and $340k for newly constructed homes.

Median listing prices in the San Antonio metro area

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Washington D.C.

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A line chart showing the average listing price of D.C.-area homes. In January 2025, it was $534k for existing homes and $669k for newly constructed homes.

Brianna Crane

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