Bolivia, NC- June could be a pivotal month for real estate buyers looking for new construction homes in Brunswick County. Depending on how the County Commissioners vote the price to purchase a brand new home could dramatically increase.
New construction has become a huge part of the Brunswick County economy. Once considered a rural area the county has been experiencing a growth boom in the last decade. It is now the fastest growing county in the state, and the seventh fastest growing county in the entire nation.
While buyers have a number of established neighborhoods with preexisting homes to choose from, many prefer to purchase new. Last year a total of 5,653 homes were sold in Brunswick County of which 1,231 were new construction. That’s 22% of all residential real estate transactions – compared to 18% in Pender County, 11% in Onslow County and only 9% in New Hanover County.
“In the last ten or fifteen years the image of Brunswick County has changed from a rural area, to a place where you can get more house for your money,” said Eric Badalov agent with Just For Buyers Realty stationed in Leland, North Carolina. “If the prices suddenly increase then instead of Brunswick County, buyers may be turning more and more to Pender or Onslow Counties.”
At issue is a proposal that would increase the fees the county currently charges developers for hooking up to sewer and water lines. For a four bedroom home that fee could potentially raise from $7,000 to $20,000… and increase that almost certainly will be passed on to the buyer.
For a customer with a good credit history, buying a $400,000 home on a 30 year fixed mortgage, with 20% down at a rate of 6.95%, the payments would increase by $86 per month.
“That’s probably not going to stop a retiree from building down here,” said Badalov. “They just sold their old home, they’ve been saving their entire lives, they want a community with all the amenities… those folks won’t be deterred. But for younger buyers, who have already been priced out of Wilmington, and probably don’t have the 20% down payment, then $86 extra a month could be more than they can afford.”
Brunswick County will debate the issue in two separate meetings in June. A public hearing, where residents are encouraged to speak on the issue, will take place on June 5. Two weeks later, on June 19th, the Board of Commissioners will then consider approving the new fees at their regular meeting.
The Cape Fear Realtor Association and the Brunswick County Association have officially come out against the rate increase, warning of potential negative impacts the increases would have on development.
If approved at the commissioners June meeting, the fees would go into effect on July 1, 2023.