Charlotte has an expanding economy, with a competitive job market in banking and technology. A large population wants to live in this city. Yet, with the high demand for housing, is Charlotte in a housing bubble?
Charlotte is in a housing bubble which means home prices continue to increase. Real estate is a product you can’t quickly replenish. This results in less supply as demand for housing increases, putting an area in a housing bubble.
But, how does this affect homeowners and homebuyers?
If you own a home in Charlotte, observe the trends in prices. You will see a significant increase in the value of the houses in the neighborhood, including yours. On the other hand, if you’re considering buying a home in Charlotte, should you wait until the prices drop? You might lose your chance. Buy sooner and expect benefits in the long run!
Keep reading to find out about the state of the local housing market in Charlotte, NC.
What is the Housing Market Like in Charlotte, NC?
The housing market in Charlotte, NC is resilient despite the unprecedented pandemic crisis. It retained its economic growth and a healthy job market. But, with an increasing number of people moving to this city, housing demands exist. This is why there have been higher home prices in the past few years.
Prices may continue to grow in the distant future. So, if you’re considering buying a home in Charlotte, now is a great time to do it!
By understanding the real estate market in Charlotte, NC, you make better choices when selecting the home to buy. The following are factors that affect the real estate market in Charlotte. You should consider these factors when choosing the right home for you.
Median Sales Price
In April 2022, the median listing home price in Charlotte, NC, is $400k. The median listing home price per square foot was 223$. The median home sold price was $401.7K. Half of the homes selling prices are above $401.7K, and half are below this price. This price might be either high or cheaper for some people.
The market is trending up by 12%, and homes will likely be selling fast. When this happens, sellers will have an advantage as soon as the price rises.
The price increase may be due to several factors. These include low-interest rates, more job opportunities, and limited homes. When these factors are present, it will create a sellers’ market. Thus, leading to a higher price of homes.
Before buying a home, you need to know your area’s median price. Always remember that prices are different from one neighborhood to another. The best thing you can do is to consult the expertise of a real estate agent for more accurate details.
The median sales price is a tool that may be beneficial in choosing a home to buy or sell. But, other factors are still to consider, such as days on the market and sales-to-list ratio.
The Sale-to-List Price Ratio in Charlotte is 104.05%. Since the ratio is above 100%, homes in Charlotte sold for 4.05% more than the list price.
The sales-to-list ratio is essential for buyers still confused about whether to buy soon or wait for prices to decrease. If the sales-to-list ratio is high, homes are selling fast, and prices are also increasing. So, if the sales-to-list ratio is low, it indicates more than enough supply of homes in the market. It also means that prices start to fall.
Days on Market
In May 2022, it took 35 days for homes to sell after getting listed in Charlotte, NC. It is lower than in December 2021, when it took 40 days on the market. Still, it had gone up since April 2022, when it took 34 days on the market.
What Does “Days on Market” Mean?
The Days on Market (DOM) is one of the valuable indicators for real estate agents to know the value of a home. It tells you how long a property is on the market and the differences in homes in the same area. It also helps negotiate a lower price for a home that has been on the market for so long.
DOM can be a helpful metric in buying or selling a home. Yet, it’s one piece of a complex puzzle. If you want a clearer picture of real estate, talk to an experienced real estate agent. They are competent enough to guide you in the long process of negotiation. They can also provide you with more valuable insights beyond numbers.
Is Charlotte a Buyers or Sellers Market?
Charlotte, NC is a seller’s market, meaning there are more buyers than available homes for sale. The demand exceeds the supply. This means that homes are selling at a fast rate while prices are also rising alongside.
Will House Prices Go Down in Charlotte, NC?
|Key Stats:Home buyers may expect a rise in home prices by 5.6% in 2022. Sales growth will be noticeable by 9.9.%.|
Charlotte’s real estate market has been on a roller coaster in the previous years. So, will house prices go down in Charlotte, NC?
It depends on some factors:
- Interest rates
Low-interest rates are favorable to buyers wanting to buy homes in Charlotte.
- Competent job market
The unemployment rate in Charlotte, NC is lower than the national average. This means that a large population has a good amount of income necessary to buy a home.
- Population in Charlotte, NC
With quite a lot of people, more are looking for a place to live and stay with their families.
These are some factors to consider. They show that house prices in Charlotte may not decrease sooner. So, if you’re willing to buy a home, now is the right time.
So, will Charlotte remain in a housing bubble? It’s hard to say for sure. The market has been on the rise for some time now, and it doesn’t look like it will be slowing down any time soon. If you have further questions about the real estate market, contact Showcase Realty. Our team can help answer your questions and guide you through buying or selling a home, whether the market is hot or not.