North Carolina or South Carolina? What’s important as commuters make the decision
Tiffany Johannes moved to the Charlotte region two dozen years ago. Johannes lives in Union County, North Carolina, and works in Ballantyne. But Johannes has a new home planned for Lake Wylie.
So Johannes is a commuter who’s living what she’s preaching.
Johannes leads not only the RE/MAX Executive: Ballantyne office but is general manager for 18 offices across the Carolinas. Johannes also is president of the Canopy Realtor Association that supports and analyzes more than 40 real estate markets in the Charlotte and Carolinas regions.
Almost daily, Johannes and her team get questions from prospective buyers on the pros and cons of a bi-state region that’s grown like wildfire for more than a decade.
“Often times people want to know how they compare to other areas,” Johannes said.
South Charlotte region
So what’s the difference between Fort Mill, Rock Hill, Indian Land, Tega Cay and Lake Wylie?
How do they compare to Steele Creek, Belmont, Waxhaw or Weddington on the North Carolina side?
It’s what those areas have in common that keeps many of them among the highest-growth residential spots in the region for a decade or more.
“Still affordability compared to Uptown or closer to the center city of Charlotte,” Johannes said. “And schools have been another great piece.”
Fort Mill, Tega Cay, Lake Wylie and Clover have some of the highest-rated schools in South Carolina. Indian Land has a brand new high school and several other recent school additions.
Another draw as buyers look out toward Rock Hill, Clover, Union County, Monroe or Waxhaw is increased acreage. Johannes said many buyers from New York, New Jersey, Connecticut, California and Florida look here expecting to find as much or more than the two or three acres they had before they left. This region also has lots — literally — of options for new construction.
Johannes first asks a potential buyer what he or she needs in a home. The second question involves commute time. As the region grows, traffic can become difficult to navigate. Buyers often opt for cities or towns based on their daily drives. Johannes has a program that projects actual commute times between spots in the region and Charlotte, down to the day and time buyers might most often travel.
“We want to give them realistic projections of what to expect,” Johannes said.
The south Charlotte region offers urban to rural options, homes near the interstate or homes on Lake Wylie. Once buyers narrow on the region, honing begins on communities.
South Carolina buyers
Locally, owners and buyers know how hot real estate is on both sides of the state line. The difference, Johannes said, is the potential buyer from from several states away who comes to Charlotte for work and starts searching online.
“Most of the time South Carolina is not on their radar until a Realtor brings it up,” Johannes said.
Many of those out-of-state clients who hadn’t thought of South Carolina, Johannes said, end up moving there. Lake living in Tega Cay or Lake Wylie is a draw. The Anne Springs Close Greenway in Fort Mill is a way for buyers to live on smaller lots, but have access to nature.
South Carolina also has a track record. This part of the state has grown so much in recent years, it’s easy for a buyer from Pittsburgh or New York or Chicago to find fellow transplants already living just south of the state line. Johannes said some people find a hometown feel and camaraderie in South Carolina, even when they’d never before been there.
“It also provides for a sense of community,” Johannes said.
SC vs. NC laws
There are dollars and cents differences that show up at the state line.
“The difference between the states in particular,” Johannes said, “are the tax structures.”
Differences like how seniors are taxed in the two states than can be important for some buyers. South Carolina tax law makes buying and living in a home more affordable compared to North Carolina, but the resulting shift toward business tax can make investment property purchases more expensive than in North Carolina.
Other variables involve preference. Politically, South Carolina runs red. North Carolina shades purple, sometimes blue. Agents don’t get into that level of politics with buyers but Johannes said some buyers do their own research and pick a state that aligns with their politics.
“That definitely has come up,” Johannes said. “It doesn’t come up as much right now.”
Culture and laws brought on by politics can differ. During the COVID-19 pandemic, for instance, South Carolina often was more likely to reopen businesses or drop mask mandates at the state level than North Carolina was. South Carolina has long been known for fireworks and cheaper gas, also based on differing state laws.
“Sometimes it can come down to regulations and rules and taxation beyond property rights,” Johannes said.
2023 forecast
Real estate licenses don’t come with crystal balls. Yet, Johannes looks into 2023 with confidence in the real estate market. Because job creation and job market figures are so strong in South Carolina, and the Charlotte market overall, people will relocate here. So even recession isn’t necessarily bad for the housing industry.
“New companies are coming every day to our community,” Johannes said.
Interest rates are higher than they were in recent years, but the past two years the Charlotte region saw record numbers of home sales with multiple offers and people paying above asking price. Even if interest rates are a couple points higher than they were, a market stabilization could help buyers.
“You save money at 6.5% compared to overpaying in previous years, and bringing cash to the table,” Johannes said. “You keep more cash in your pocket.”
Rates are already lower than they were at peak time last year, Johannes said, and could tick down again this year. Even if they don’t, Johannes doesn’t expect to see a federal uptick spike the rates new homeowners would pay.
“The mortgage industry has really already figured that in, so I don’t think we’re going to see parallel rate hikes for home mortgages,” Johannes said.
Johannes said there are more first-time home buyers asking Realtors for strategies to make a deal happen. There’s optimism for sellers. Johannes points to a regional study that showed the typical area homeowner gained 54% equity in the home from January 2020 to July 2022. Last quarter 28% of buyers were investors and 25% first-time home buyers. Johannes expects the trend to shift somewhat toward more first-time buyers this year.
This story was originally published January 26, 2023 at 8:19 AM with the headline "North Carolina or South Carolina? What’s important as commuters make the decision."
