If you bought your "starter home" in New Hanover or Brunswick County between 2020 and 2022, you are likely sitting on a mountain of equity. But you might also feel stuck.

Maybe your family has outgrown the 3-bedroom ranch in Leland. Maybe you are craving the school district in Hampstead or the boat access in Porters Neck. The problem isn't affording the new house; it's the logistics of getting there without becoming homeless in between.

In late 2025, the market has shifted in favor of the "Move-Up Buyer." Inventory is up (over 20% in some local luxury brackets), and the frenzy has cooled. This creates a unique window to trade up—if you have the right strategy.

Here is your playbook for upsizing in the Cape Fear region without the stress.

1. The Market Math: Why Now?

For the last few years, the gap between "starter homes" and "forever homes" was widening too fast to catch. In late 2025, that gap has stabilized.

The "Luxury Softness": While entry-level homes (under $450k) remain competitive, the inventory for homes over $800k has grown significantly. This gives you leverage. You are selling in a seller's market (your starter home) and buying in a balanced market (your dream home).

The Rate Reality: Yes, rates are higher than 3%. But "marrying the house and dating the rate" is a valid strategy again, especially with lenders offering free refinancing windows if rates drop in 2026.

2. The "Buy First" Strategy (Without the Risk)

The biggest fear is carrying two mortgages. Here are three financial tools we use to bridge the gap.

The Bridge Loan: Local lenders like First National Bank and CCNB offer products specifically for this. They lend you the down payment for the new home based on the equity in your current one. You pay it off (interest-only) for a few months until your old home sells.

The HELOC "Hack": If you have significant equity, open a Home Equity Line of Credit (HELOC) on your current home before you list it. Draw on that line to fund your down payment on the new house. It’s often cheaper and faster than a formal bridge loan.

Mortgage Recasting (The Secret Weapon): Let’s say you buy the new house with a minimum down payment (5%) to preserve cash. Once your old home sells and you have that big check, you don't have to refinance. You can ask your lender to "Recast" your mortgage.

How it works: You make a large lump-sum payment toward the principal. The lender re-amortizes your loan, lowering your monthly payment to reflect the new balance, while keeping your same interest rate. Note: Not all loans (like FHA/VA) allow this; check with your lender first.

3. The Return of the Contingency

In 2022, writing an offer "contingent on the sale of my home" was an instant rejection.

The 2025 Shift: With active inventory sitting longer, sellers are accepting Contingent Offers again.

The NC Catch: In North Carolina, you still have to pay a Due Diligence Fee. If you go under contract on your dream home and your old home doesn't sell, you can walk away, but you lose that Due Diligence fee.

Strategy: We negotiate a longer "Settlement Period" (e.g., 60 days) to give you breathing room to sell your home, rather than relying on a risky contingency clause.

4. Identifying the "Dream" Neighborhoods

Where are the move-up buyers going in late 2025?

For Space & Schools: Hampstead (Pender County). With the bypass construction visible, buyers are grabbing larger lots in neighborhoods like Salters Haven or WyndWater before the commute times drop and prices pop.

For Lifestyle: Brunswick Forest (Leland). The "Cape Fear National" section offers the larger floor plans and estate lots that starter-home owners crave, without the maintenance of a rural acreage.

For Water: Porters Neck. As inventory stabilizes, we are seeing opportunities to get into water-access communities for under $1M—something that was nearly impossible two years ago.

5. The Tax Reality Check

Before you cash out that equity, remember Uncle Sam.

Capital Gains: You can exclude up to $500,000 (if married) of profit from capital gains taxes, provided you lived in your starter home for 2 of the last 5 years.

NC State Tax: North Carolina treats capital gains as ordinary income. For 2025, that tax rate is 4.25%. Make sure you set aside a portion of your proceeds for the state bill if your profit exceeds the federal exclusion.

The Bottom Line

Upsizing is a complex dance of timing and finance. You need to know exactly what your current home will sell for before you fall in love with the new one.

At Aspyre Realty Group, we specialize in "Domino Transactions." We coordinate the closings so you move once—loading the truck at your old house in the morning and unloading at your dream home that afternoon.