Real estate is selling like hotcakes in Charlotte, NC! Charlotte housing has become so competitive for thousands of buyers that buying a home in the area has been ruled out altogether. So the question on everyone’s mind is: will the Charlotte real estate market ever cool off? Is Charlotte, NC in a housing bubble?
Charlotte is in a housing bubble. The high demand for Charlotte, NC homes for sale, coupled with a shortage of homes and low mortgage prices, is driving real estate at an all-time high. Sellers and investors now have the upper hand over buyers in the red hot market.
Today, we’ll discuss what the housing market in Charlotte is like and what the implications are for buyers and sellers:
- Why Charlotte homes are so expensive
- If Charlotte is in a housing bubble
- Why investors are choosing Charlotte
- Charlotte real estate market forecast
Will the Charlotte selling market continue to dominate?
Let’s find out!
Why Are Charlotte, North Carolina Homes for Sale So Expensive?
Charlotte, NC is a seller’s market. There is fierce competition in Charlotte amid the growing demand for housing. Coupled with the housing shortage, real estate prices continued to skyrocket despite the COVID-19 pandemic.
In June 2021, the median list price for Charlotte, NC homes for sale was about $360,000. This shows an upward trend of 10.7% year-over-year.
The median listing price was around $193 per square foot. The median sale price was around $350,000.
This means that the sale-to-list price is almost 101.82%. This isn’t ideal for buyers who should be looking for a sale-to-ask price of around 90%.
Millennials are flocking to Charlotte, North Carolina, making it the number one location where they are relocating. #TopRealEstateAgentInCharlotteNC #ShortSaleAgentsInCharlotteNC #NancyBraun #ShowcaseRealityhttps://t.co/7u2Q2t0JH0 pic.twitter.com/GRVYc2oaOP— Showcase Realty (@ShowcaseRealty) August 14, 2021
Is Charlotte NC in a Housing Bubble?
Even amid the coronavirus pandemic, the demand for Charlotte, NC homes for sale far exceeds the supply. Mortgage rates also remain low, driving up real estate prices. Charlotte NC buyers now need to cough up, on average, 1.82% above the asking price.
If mortgage remains low and housing demand stays hot, sellers and investors now have an advantage over buyers in price negotiations. While homes are attractive to sellers in the current climate, Charlotte, NC, investment properties have the potential to bring in some decent cash flow.
Charlotte Real Estate Forecast
According to analysts, though, the housing bubble won’t stay this hot for long. According to Realtor.com, fewer people are applying for mortgages, and the demand for homes is dwindling.
Homes in Charlotte usually sell after 30 days. Median days on the market have gone down by 37.5% since last year. In a balanced market, supply will take about six months to dwindle to zero.
This gives buyers some hope that competition will die down.
While home prices are expected to drop, a market crash is definitely not on the horizon.
Is It a Good Time to Buy or Sell a House in Charlotte?
Looking at current trends, home inventory in Charlotte is still at 0.6 months of supply, down by 66.7% year-to-year. New listings are down by 6.5% year-to-year. However, in February 2021, new listings were at 1,525, up by 3.2% year-to-year.
The increase in new listings means that sellers are still willing to put their homes on the market. Buyers should expect to see more homes for sale, especially during the peak buying season.
It is a good time to buy or sell a house in Charlotte. In the current climate, inventory is still tight, and prices will stay high in the coming months.
Charlotte is still indeed a seller’s real estate market. Charlotte will remain to be a hot market for investors who plan to:
- Hold and rent out real estate
- Renovate or flip homes
- Invest in multi-family properties
However, note that the annual appreciation rate for Charlotte real estate is 2.10%. Now is the opportune time for sellers to put their Charlotte home for sale as home prices trend higher:
- Metro home values are up 11.9% over the past year.
- Home values in the metro are expected to rise 15%
Investors or homeowners who want to sell or cash out their homes should do so in the current phase.
The weather in Charlotte, NC includes 218 days of sunshine a year and an average temperature of 71 degrees. #TopRealEstateAgentInCharlotteNC #ShortSaleAgentsInCharlotteNC #NancyBraun #ShowcaseRealityhttps://t.co/7u2Q2til5A pic.twitter.com/aqJcIArwu8— Showcase Realty (@ShowcaseRealty) August 15, 2021
Why Are Real Estate Investors Choosing Charlotte, NC?
If you are thinking of investing in Charlotte, here’s what you should know:
1. Charlotte is a Fast-Growing City
Charlotte is the largest city in North Carolina. It’s also the third fastest-growing city in the US!
If this trend continues, the population is expected to rise almost 50% between 2010 to 2030. That’s about 600,000 more people.
Investors should note that millennials, baby boomers, seniors, and people from abroad choose Charlotte because of its lower cost of living.
2. Low Mortgage Rates
The low mortgage rates were instrumental in the Charlotte real estate boom. More people can afford to buy homes, including primary homeowners and investors.
With the stock market down, it’s the perfect opportunity to diversify your portfolio and invest in a popular city like Charlotte.
3. Job Opportunities in Charlotte
Charlotte is a bustling city. It boasts of a strong job market with an increase of almost 3% over the last year.
In the next ten years, job growth is predicted to be 45.2% compared to the national average of 33.5%.
The unemployment rate of 4.9% is also lower than the national average of 6%.
Major employers like American Airlines, Bank of America, Wells Fargo, Lowes, and Charlotte Motor Speedway attract employers looking for quality housing.
4. Affordable Real Estate
Home prices in Charlotte are higher compared to the rest of North Carolina. However, you will notice that North Carolina investment properties and homes for sale are lower than the national average.
5. Booming Renter’s Market
With its stable job market, high population, and increasing house prices, investors see a booming renter’s market in Charlotte, NC.
There is a large influx of millennials in the area. Thousands of millennials are still choosing to rent properties, which is great news for investors looking for property in NC.
Homeownership in Charlotte is at 52.9%, lower than the national average of 64%.
Investors can make significant money in Charlotte with such high demand for rental properties and increasing house prices.
Finding the right area is overwhelming and time-consuming, with thousands of homes and investment properties to choose from. Thankfully, you can trust property management companies to manage the transaction.
The best real estate agent in Charlotte NC, Showcase Realty, has sold over 1,000 properties in the Charlotte metro since 2008.
Nancy Braun and her team guarantee to sell homes three times faster and with $30,000 more in your pocket than other agents.
Nancy Braun Real Estate is the fastest-growing real estate team in Charlotte, North Carolina. With professional service that’s personally delivered, investors, buyers, and sellers are guaranteed to have all their needs and requests met. Contact Nancy Braun of Showcase Realty today at 704-997-3794.
In case you cannot view this video here, please click the link below to view Is Charlotte in a Housing Bubble? on my YouTube channel: https://www.youtube.com/watch?v=HwZ2AoJ8fjk