The REAL Story Behind Charlotte Real Estate
Just about everyone has heard the national real estate story- real estate is very bad right now and mortgage rates are high, almost 8%! But what about Charlotte? What’s the real estate market like here?
First, a background note. You may have heard us say this before, but there is not one real estate market for the entire country. There are hundreds of unique real estate markets. While there are macro trends, each area is different! You wouldn’t know that by listening to the nightly news, there is a distinct trend to lump all real estate into a single headline, and recently those headlines have been bad! Sometimes really bad. But remember, the real estate market isn't one market, it is many. There are more markets than states, and each market differs greatly from the "average" or national real estate market.
Thankfully Charlotte’s real estate market is routinely in the top 5 or top 10 lists for appreciation and growth. So no bubble here and home values are projected to rise next year as well by all of the big analytic companies (Core Logic, Fannie Mae, etc.). So far, in mid-November, prices have risen a healthy 3.8% over last year. Homes sold are down almost 19% over last year. There are many reasons for this, but the biggest factors are people who want to hang onto their low 2-3% interest rates, and the large increase in home values over the last 3 years. Days on market are increasing, up as much as 50 % in some areas, with an average increase of 25%. In most cases, the days of multiple “over-ask” offers are gone. The exception to the rule is south Charlotte, and homes close into Uptown. If your home is priced right in these areas (and shows well), then there is still the possibility of multiple offers, above list price.
We remain bullish on Charlotte real estate because the local economy remains so strong. Charlotte’s economic fundamentals are great with solid GDP growth and low unemployment. This makes, and will continue to make, Charlotte real estate one of the safest and best markets in the country. We look forward to serving you whenever you need us, in 2024 or beyond.
Sellers
There is good news for sellers: it is still a seller’s market. We are finishing our 2nd straight year of declining inventory. The lack of homes for sale have kept prices rising, even in the face of high interest rates. Inventory numbers are 19% off 2022, and 2022 was 26% off 2021. In the Charlotte region of the MLS, median home prices rose 3.77% in the last 12 months. Every single home we sold in 2023 so far has sold for above asking - most with multiple offers. Our clients' listings have sold for 5.41% higher than the average listing agent in Charlotte so far this year!
2024 will be another great year to sell your home in Charlotte. We have a proven process and strategy for our seller clients - we consistently achieve the best results and highest value for our seller clients. Reach out to us if you'd like to learn more about how we achieve these results for our clients.
Buyers
What about buying a home? There are good homes available, but they sell quickly and you'll need to be patient. I'd recommend starting the process a little earlier than before. Do you know your lease will be up in May or June? It is probably best to start looking now! New builds are a bright spot as construction on new homes has finally reached pre-2008 levels. Many new builders are offering attractive financing incentives and discounts on high-end options. There's also some inventory relief on the horizon over the next several years as Boomers decide to downsize en-masse. More than ever though, a high quality buyer agent is important to help you reach your goals! We are here to help you win your home in this low-inventory environment.
You might be thinking, “Well why not wait until the rates come down?" It's definitely an option, but with homes rising ~4% a year how long are you willing to wait? The other piece of the puzzle is that when interest rates do eventually fall into that 5-6% range, we expect home prices to quickly appreciate again. There's simply too much built up demand and not enough homes for sale. If you are able, the strategy is to buy now, and refinance when rates come down. We also have partner lenders who are offering big discounts on refis over the next 2 years.
Long story short, we're here to help in this competitive environment, and we'll always be looking out for your best interests. We want you to be happy with your buying decision the day you close, and 5 years later too!
