August 14


Charlotte, North Carolina is in what experts call an ‘overheated market.’ Home prices are up, while the inventory of available homes is down. As a result, it can be a brutal bidding war for interested buyers.

The best way to buy a home in an overheated market is to secure up-front underwriting. Improving your offer - and looking at pocket listings - will help improve your chances too. 

It may take you a few times to accept your offer, but it’s best to ‘try and try until you succeed.’ 

Before you get started, however, it will help to learn more about the market predictions below.

Homes for Sale in Charlotte, NC

What is the Housing Market Prediction for 2022?

2022 will continue to be an overheated market, according to Consumer Reports

Since 2019, median house prices nationwide have increased by 29%. On the other hand, the inventory has shrunk by a whopping 30%. 

As a result, 28% of home buyers across the USA have paid more than the asking price - a trend that will likely continue today.

North Carolina

These national figures above are eerily similar to the NC housing market. 

In September 2021, the number of Charlotte homes for sale was reduced to over 4,000. This is a considerably steep drop of 38.2%, compared to the previous inventory of 6,500 in September 2020. 

Given the tight inventory, it’s no surprise that NC median home prices have had an average annual increase of 29.91%. This makes for the state’s current total appreciation rate of 6.71%. 

With these figures, Neighborhood Scout has given NC’s housing market a 9/10 rating (compared to the rest of the US.)

South Carolina

NC’s neighboring state is in the same overheated pickle as well. 

SC has also experienced a decrease in inventory - a record 36% drop.

Expectedly, this has led to an average annual price increase of 25.01%. 

All in all, SC has a total appreciation rate of 5.74%,  which explains its Neighborhood Scout score of 7/10.


How Long Do Sellers’ Markets Last?

There’s no saying how long the seller’s market will last. It depends on a variety of factors, after all.

In North Carolina, for example, the overheated market results from: 

  • The low supply and high demand, as detailed above
  • The COVID-19  pandemic
  • Historic low-interest rates
  • The 26% increase in the price of building materials

That said, the heat may simmer down, at least for a bit, since interest rates are expected to rise.

According to a CNBC report, the 30-year-fixed mortgage rate may hike to 3.6%, up from the current average of 3.3%. 

This is the only change expected, though. Projections show that home prices will continue to rise. So it is likely that inventory will remain thin.

In other words, Charlotte, NC will continue to be a seller’s market, just like it has been for some time.

Buying a House in Charlotte

How Do You Buy a House When the Market is Hot?

While Charlotte, NC home prices continue to rise, you don’t have to be in debt to buy one. It’s only a matter of heeding these tips on buying a home in an overheated market:

1. Search for Charlotte, NC Homes Every Tuesday or Wednesday

In an overheated market, deals are often closed during the weekends. Because of this, agents may take time to revise listings from ‘pending’ to ‘in-contract.’

You can save yourself from disappointment by searching listings mid-week.

For one, you should be able to discover homes that have been languishing on the market and that likely have willing-to-negotiate owners.

Tip: Check the Showcase Realty website every Thursday if you want to get first dibs on new listings.

2. Secure an Up-Front Underwriting

Many home buyers make all-cash offers to win the war in this hot market. 

If you don’t have the money to do the same, you can gain equal footing by getting up-front underwriting. 

This document discloses all the information that sellers need, such as your:

  • Credit history
  • Debt-to-income ratio
  • Income
  • Employment 

Once approved, this can save you several weeks’ worth of paperwork. As always, time is of the essence in this hot Charlotte, NC market!

3. Look for Pocket Listings or Off-Market Homes

This is where hiring the best real estate agents in Charlotte, NC comes into play. 

For one, Showcase Realty has access to a multiple listing database and a private network. Thanks to these, Showcase Realty agents can help you find off-market homes that haven’t been aggressively advertised. 

As a result, they don’t have as much competition as the other properties. 

If you like, Nancy Braun and her team can even help you make an offer on a home that’s not for sale!

4. Improve Your Offer

While money makes the world go round, an irresistible offer will help you buy a home in this heated market. 

For example, you can offer to let the seller stay in the house a few days, for free, after closing. You can even strike a deal and allow them to stay for a set time.

While this technique is a gamble, it has been known to work, and it shouldn’t hurt your chances either.

What is a Respectable Offer on a Home?

Showcase Realty experts recommend offering 1% to 3% above the asking price. 

If you could offer this amount in cash, it would keep you in front of the bidding pack. 

But if it’s impossible, the next best thing you can do is keep your finances in order. 

Apart from having an up-front underwriting, it will help if you have money for a down payment (at least 20%.) 

A pre-approved mortgage will help increase your chances, too.

Can I Outbid An Accepted Offer?

You can outbid an accepted offer if the contract has not been signed yet. 

And, if it has been signed, the contract’s contingencies may allow the seller to accept your offer. In most cases, the buyer has 30 days to close the mortgage. 

If the seller decides against taking the higher offer, they can still accept yours as a backup. Who knows? The first buyer might back out, or they may refuse to accept the damages found during the inspection. 

Whatever the reason, you’ll be the winner in the bidding war!

Best Real Estate Agent in Charlotte, NC

5. Try and Try Until You Succeed

Don’t get disheartened if the first offer you make on a home doesn’t get accepted. 

According to the same Consumer Reports survey, 44% of buyers made at least two offers. 

Furthermore, 15% of buyers had made five or more offers before closing their deals! 

Remember: these rejections often happen to buyers without a reliable real estate agent.

That’s why you need to work with me, Nancy Braun. As the top real estate agent in Charlotte, NC, I can help you land the home of your dreams!

You can also check my blog here to learn more about the things to know when buying a home in Charlotte.


Final Thoughts

Even if Charlotte, NC is a hot market right now, you can still buy a home without biting more than you can chew. 

Apart from up-front underwriting, you need to hire the best real estate agent in Charlotte, NC.

I, Nancy Braun and my team of agents at Showcase Realty can help you position yourself as a contender in winning your bid to get your home. With my 24 years of experience, I can help you make the best offer in this overheated market. Call Nancy at 704-997-3794 today.


Tags

Charlotte NC homes for sale, Charlotte Real Estate, showcase realty


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