Is our local housing market overvalued and set for a huge correction? According to Fannie Mae, just 16% of consumers say NOW is a good time to buy a home.  With housing affordability conditions at the worst levels they’ve ever been & sky high mortgage rates, can we start seeing our housing market suffer? 

Many factors affect the Charlotte, North Carolina housing market, and a key driver behind its fluctuations is mortgage rates. These rates can determine buying power and affordability for many.

 In this post, we’ll explore the macro & micro trends affecting our housing market. We will review the most up-to-date local statistics, mortgage rates, the federal reserve, and some expert advice to help you if you’re considering buying or selling in our market.  

Charlotte North Carolina Housing Market Update:  

October 2023

1. The Federal Reserve & Mortgage Rates

2. Number of New Listings

3. Number of Pending Sales

4. Number of Active Listings

5.Number of Expired & Withdrawn Listings

6. Number of Closed Homes

7. Average Sales Price

8. Market Overview

9. What Does This Mean For Home Sellers?

10. What Does This Mean For Home Buyers?

1. The Federal Reserve & Mortgage Rates

There’s a key player that can significantly influence the fate of our local Charlotte housing market and the nation’s housing market as a whole – the Federal Reserve. Understanding their recent actions and their implications is crucial for anyone involved in real estate, whether you’re a buyer or a seller. Let’s delve into the latest updates and how they affect our housing market.

September’s Federal Reserve Meeting

Last month, on September 19 and September 20, the Federal Reserve gathered to discuss the state of our economy and, more importantly, interest rates. The outcome? They opted to maintain the status quo, keeping rates unchanged. However, the message they sent was crystal clear – they’re gearing up for one more rate increase before the year’s end.

The Impact on Mortgage Rates

Wondering how these Federal Reserve actions affect those in the market for a mortgage? Well, when the Fed decided to hike rates in September, we witnessed a direct impact on mortgage rates. They inched up a bit higher, and now they’re hovering just above the 8% mark.

Insights from the Federal Reserve Dot Plot

Based on the most recent Federal Reserve Dot plot, we can probably expect to see the higher rates for longer.  Projections showed a high likelihood of 1 more hike this year and only 2 rate cuts for 2024, most likely later in the year.  This is 2 fewer cuts than were indicated during the Fed’s June 2023 update.  

Anticipating Another Rate Hike

The Federal Reserve will meet 2 more times this year, once October 31st/ November 1st  & again December 12th/13th. These will be critical days to pay attention to and can give us valuable insight as to how the housing market will react for the rest of 2023 and into 2024. Currently, the Federal Reserve is eyeing one more rate hike for the current year. This suggests their confidence in the economy’s strength and their commitment to keeping it steady. For those tuned into the housing market, this indicates a potential shift in the financial landscape.

Economic Ripples

What does all of this mean for the broader economy and the real estate market? Well, these adjustments in the Federal Reserve’s outlook can send ripples through the financial world. A more cautious approach to rate cuts in the coming year implies some tightening in the financial landscape. This could impact credit availability and the cost of borrowing, including mortgage rates. Buyers and sellers should keep an eye on these evolving dynamics as they navigate the housing market.

2. Number of New Listings

In September, the Charlotte housing market saw a total of 1,216 new listings hit the market. This figure marks a 4% increase from the number of new listings that appeared in August, and it is down by 9% when compared to September of the previous year 2022.

Deciphering the Decline In New Listings 

This downward trend in new listings month over month can be attributed to a couple of key factors. First on the list are seasonal patterns. As we venture further into the winter months, it’s natural to see a decrease in the volume of homes hitting the market. This aligns with the typical ebb and flow of the real estate calendar.

However, the second reason behind this decline is particularly noteworthy. It relates to the slight increase in mortgage rates. If you’ve been following our previous market updates, you’re likely aware that throughout this year, higher mortgage rates have acted as a deterrent for potential home sellers, dissuading them from making the leap. As rates climb, we witness fewer individuals deciding to list their homes for sale.

So, in essence, the trajectory of mortgage rates can serve as a barometer for the willingness of homeowners to enter the market. As these rates continue to evolve, we’ll be here to provide you with the latest insights and their potential impact on the Charlotte housing scene. Stay tuned for more updates as we decode the ever-changing real estate landscape

This data serves as a reflection of the market’s evolving dynamics and can provide potential buyers and sellers with insights into the market’s trajectory and potential opportunities. 

The Ripple Effect Of Low Mortgage Rates

These historically low mortgage rates are acting as a powerful incentive for homeowners to stay put. Selling and buying a new property often means taking on a new mortgage. For many, this could result in higher monthly payments, given that current rates for new mortgages are now higher than what many existing homeowners are locked into.

This reluctance to sell isn’t just about the numbers, it’s contributing to a palpable tension in the Charlotte housing market. With so few homeowners willing to list their properties, prospective buyers are left with fewer options, which can lead to competitive bidding wars and continually rising home prices.

3. Number of Pending Sales

In September, 912 homes in Charlotte accepted an offer.This marks a 12% increase from August and an 29% drop compared to September of the previous year. Without a doubt, we’ve witnessed a significant dip in the number of pending sales.

Year-Over-Year Reality

It’s worth noting that year-over-year, we naturally anticipate fewer homes accepting offers. This can be largely attributed to the fact that there are fewer homes entering the market in the first place. We’ve observed a consistent trend of fewer homes available on the market, both in pending and closed statuses, compared to previous years.

Yet, the pronounced decline in pending sales from August to September raises eyebrows. While this could partly be attributed to seasonal shifts, it’s a substantial decrease that warrants attention. Another factor in play is the uptick in mortgage rates, which currently hover just above the 8% mark. These higher interest rates appear to be wearing down potential buyers, resulting in a reduced number of homes going under contract.

New Listings Outpacing Pending Sales

An interesting trend continues to emerge – the number of new listings consistently outpaces the number of pending sales. When new listings surpass pending sales, it typically signals an increasing inventory. In simpler terms, more homes are entering the market than there are homes receiving offers. This shift can be one of the initial signs of a transition from a buyer’s market to a seller’s market.

However, the paradox lies in the fact that despite this trend, our local active listing inventory continues to dwindle. In this enigmatic scenario, we see the delicate balance between supply and demand, and it’s a phenomenon we’ll be keeping a keen eye on as we navigate the evolving real estate landscape in Charlotte. Stay tuned for further updates as we decode the ever-changing dynamics of the housing market.

4. Number of Active Listings:

In September, Charlotte had about 3,016 homes listed for sale. This was a 2% drop from August and a bigger 23% drop from September 2022.

Fewer Homes Listed Compared to Last Year: We’ve noticed fewer homes are being listed over the past year. It seems many homeowners are waiting before selling.

Why the Drop in Listings?: Even though more new homes are being listed than sold, there are still fewer homes available overall. This might be because more listings are being removed without selling. Some sellers might be unsure about the current market and decide to wait because of things like changing interest rates or the economy.

5. Number of Expired/ Withdrawn Listings

In September, we noticed an increase in listings being taken off the market, either withdrawn or expired. Specifically, 1,351 listings were removed, a 10% rise from August. This change gives us some insights into the current state of Charlotte’s real estate.

Why the Increase in Withdrawals?:

Why did this happen? Some homeowners might not have received the offers or interest they expected. This could make them rethink their strategy. They might change their agent, adjust their marketing, think about renting out their property, or even delay their moving plans.

The Market’s Ups and Downs:

Charlotte’s housing market is strong, but it’s seen some changes. Some months had lower prices, and houses took longer to sell. This might be due to higher interest rates and buyers being more careful with their budgets.

Choosing the Right Agent Matters:

If you’re selling, pick a knowledgeable agent. They should understand the market, keep up with changes, and have a good marketing plan to attract buyers. The market’s still active, but it’s different from a few years ago.

There’s Still Hope for Sellers:

If you tried to sell and faced challenges, there’s still hope. We’ve helped many homeowners who had trouble at first. If you’re in this situation, give us a call. We can discuss a strategy because houses are still selling.

Now, let’s talk about the number of homes that were sold.

6. Number of Closed Homes

Shifting our lens to September’s housing transactions, we see that 968 homes were ushered to new beginnings. This figure is significant, indicating a 16% decline from the closures in August. Even more pronounced, there’s a 25% dip when stacked against September’s statistics from 2022. This trend is in line with what we’ve been observing — a downward trajectory in home sales.

The narrative of dwindling homes on the market, combined with a reduced number of properties securing contracts, naturally results in fewer ownership transfers.

A cornerstone of our housing market’s fortitude remains the sustained low housing inventory. This dearth of available homes has fostered a competitive landscape, catalyzing an upward drive in property valuations.

7. Average Sales Price

In September, the average sales price soared to $540,000, marking an impressive 4% surge from the average sales price recorded in August. What’s more, it demonstrates an even more substantial 11% increase when compared to the average sales price in September of the prior year, 2022. These numbers signal robust and healthy appreciation in real estate values year over year.

September’s Resurgence:

While the previous months may have shown a slight softening in the average sales price, September brought with it a notable surge in month-over-month housing valuations. Such a trend accentuates the enduring vitality of Charlotte’s housing market, even as it grapples with pronounced rate fluctuations.

A Market Steeled Against Storms:

The real marvel lies in Charlotte’s housing market’s unwavering resilience, especially when viewed against the backdrop of significant rate hikes. The market’s ability to remain buoyant amid such economic turbulence speaks volumes about its inherent stability and the sustained appeal of Charlotte real estate

.

8. Market Overview

Diving into the Current Climate: As we navigate the current ebb and flow of Charlotte’s housing market, it’s vital to understand the multitude of factors molding the landscape for both buyers and sellers.

The Echo of Student Loans: October ushered in a pivotal shift: the return of student loan payments. After a multi-year hiatus, this change brings with it a financial weight for over 40 million Americans, collectively shouldering an immense $1.7 trillion in student loan debt. For aspiring homeowners, this translates to added monthly expenses, ranging from a couple of hundred to several thousand dollars. Its ripple effect is vast, affecting not just Charlotte’s buyer demographic but also casting a nationwide shadow. This shift has the potential to impact inflation rates, influence purchasing capacities, and even sway the Federal Reserve’s strategic moves as they sift through this complex maze of economic indicators.

Navigating a Transformed Sellers’ Terrain: For sellers, the market is undergoing a metamorphosis. There’s a surge in the number of homes being listed, yet not all find eager buyers immediately. This imbalance has led to a slight uptick in the average days a property spends on the market. Now more than ever, it’s imperative for sellers to be agile, aligning with a savvy realtor to ensure strategic market positioning, and realizing the best possible price for their homes. Despite the shifting sands, the fact that numerous homes continue to change hands underscores the enduring vibrancy of Charlotte’s real estate sector.

Unyielding Fortitude Amidst Hurdles: The hallmark of Charlotte’s real estate market has always been its resilience. Even when confronted with rising interest rates and a dip in housing affordability, the market showcases a robust ability to bounce back. Challenges are ever-present, but so are opportunities for those equipped with knowledge and foresight.

Charting the Course Ahead: Our pledge is to remain steadfast in monitoring these shifts, ensuring that you’re always armed with the latest insights. Knowledge is power, and in the ever-shifting realm of real estate, staying informed is your best ally.

9. What Does This Mean For Home Sellers

For home sellers in Charlotte, NC, the current housing landscape may seem somewhat different than in the recent past. Here’s a breakdown of what’s happening and what you need to consider:

1. Increased Competition: The balance has slightly shifted with more homes entering the market than there are buyers. This inevitably means more competition. As a seller, it’s crucial to differentiate your property from the rest.

2. Longer Days on Market: Properties are taking a bit longer to sell. This extended timeframe means you’ll need patience and the right strategy to attract potential buyers.

3. The Importance of the Right Realtor: Now, more than ever, having an experienced realtor by your side can be the difference between a swift sale and a stagnant listing. Choose someone who understands the current market dynamics, can offer invaluable advice, and position your home to attract the best offers.

4. Market Resilience: Despite the challenges, the Charlotte housing market is showing resilience. Many properties are still selling, as evidenced by the successes we’ve had with our current and recent clients. It’s a testament to the city’s enduring appeal and the robustness of the housing market.

5. Factors to Watch: Two significant elements could influence the housing market shortly:

   • Federal Reserve Rate Hikes: The decisions made by the Federal Reserve, especially concerning rate hikes in October or December, can impact mortgage rates. A hike can make mortgages more expensive, which in turn affects buyer affordability. Notably, the recent rate hikes have had a pronounced effect on potential buyers.

   • Student Loans: With the commencement of student loan bills this month, it’s uncertain how this will impact potential buyers’ purchasing power. As these debts start to weigh on potential homebuyers, it might influence their decision to buy.

In conclusion, while there are changes in the horizon, with the right strategy and by keeping a close eye on evolving market conditions, sellers can still find success in the Charlotte housing market. If you’re considering selling your home, now is the time to be well-informed and proactive

If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

10. What Does This Mean For Home Buyers

For potential homebuyers in Charlotte, NC, navigating the current market might seem daunting. Let’s break down the current situation and key considerations for those looking to make a purchase:Affordability Concerns: The present market is considered one of the most unaffordable times to buy a home. It’s essential to assess your financial health before making such a significant commitment.

1. Buy Within Your Means: A crucial piece of advice we always give is to only buy a property if you’re financially comfortable. This means:
   • Ensuring job security.
   • Not overstretching your finances.
   • Avoiding putting yourself in a precarious financial situation by buying beyond your means.
2. Mortgage Rate Fluctuations: While the idea of purchasing a home with a higher mortgage rate and then refinancing when rates drop might seem tempting, it’s a gamble. Mortgage rates are unpredictable. Although they might decrease sooner or later, basing your buying decision solely on this anticipation can be risky. My personal experience, having recently bought a home well within our means, speaks to the peace of mind that comes with such a decision.
3. Housing Market Crash Unlikely: If you’re waiting for a housing market crash like the Great Recession, the current data doesn’t support such a scenario. With persistently low inventory, the market remains resilient, though minor fluctuations are always possible due to various factors, including student loans, rates, and broader economic conditions.
4. Risk of Waiting for Lower Rates: While it might seem wise to wait for mortgage rates to drop, remember you’re not alone. Millions are waiting for the same opportunity. When rates do drop, a surge in demand will likely follow, driving up prices and competition. In contrast, the current market might offer opportunities to negotiate more favorable terms.
5. Every Situation is Unique: While these insights provide a general overview, it’s essential to remember that everyone’s situation is different. Consulting with a realtor who understands your needs and the market’s nuances can help in making an informed decision.

In summary, while challenges persist in the current housing market, opportunities are still present. Ensuring that you make well-informed and financially sound decisions will pave the way for a successful home-buying journey.

Is it a right time for you to buy or sell? 

We would love to connect with you, discuss your real estate goals and help you determine if now is a good time to buy/sell or if it is better to wait. Feel free to call us, text us, or email us. We would love to be your real estate resource of choice! 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

The Federal Reserve has done it again. Interest rates have been raised, this time reaching a peak that we haven’t seen in over two decades. This historic increase is making waves across the nation, leaving many to wonder, how will this affect the housing market? In this blog post, we will delve into what these changes mean for real estate, with a specific focus on the housing landscape in Charlotte, North Carolina.

Charlotte North Carolina Housing Market Update:  

August 2023

1. The Federal Reserve And Mortgage Rates

2. Number of New Listings

3. Number of Pending sales

4. Number of Closed Homes

5. Average Sales Price

6. Market Overview 
   

7. What Does This Mean For Home Sellers

8. What Does This Mean For Home Buyers

1. The Federal Reserve & Mortgage Rates

In a significant move, the Federal Reserve has raised the Fed Fund rate to 5.5%. This is a notable shift, marking the highest level this key interest rate has reached since 2001.

Surging Mortgage Rates: Crossing the 7% Threshold 

Following the Federal Reserve’s decision, mortgage rates responded dramatically. In July, they surged past the 7% mark, a level that we haven’t seen in years. This sharp increase is a game-changer for many prospective homebuyers, as it significantly impacts what they can afford.

Higher mortgage rates invariably translate to higher monthly payments for borrowers. As a result, this rise in rates is further tightening the screws on buyers’ affordability. For many prospective homeowners, this might mean having to set their sights on smaller, more affordable properties, or considering different neighborhoods than they originally planned.

An Ongoing Inventory Crunch 

As if surging mortgage rates weren’t enough of a challenge, the housing market is still grappling with another critical issue: a lack of available homes for sale. This inventory crunch is a nationwide phenomenon, and it’s hitting us close to home here in Charlotte.

The numbers don’t lie. Current data clearly illustrates the severe inventory shortage in our backyard. With fewer homes available, buyers are often forced into bidding wars, pushing prices even higher in a market that is already challenging due to rising mortgage rates.

Looking Ahead in the Charlotte Housing Market 

As we navigate these unprecedented waters, it’s essential to stay informed and prepared. Whether you are a buyer feeling the pressure of these compounding factors or a seller questioning how this will affect your sale, the landscape of the Charlotte housing market is shifting and we are here to guide you through it. 

2. Number of New Listings

In July, the Charlotte housing market saw a total of 1,134 new listings hit the market . This figure marks a 17% decrease from the number of new listings that appeared in June, and it is notably down by 34% when compared to July of the previous year 2022.

Charlotte Housing Inventory: A Significant Dip!

The decrease in new listings compared to last year is a clear indicator of the ongoing inventory crisis. Homeowners are hesitant to list their properties due to the current market conditions, including high mortgage rates. This hesitancy is contributing to the shortage of homes on the market, creating a challenging environment for buyers.

So, why are so many homeowners refusing to make a move? A key factor appears to be the current state of mortgage rates. A substantial 80% of mortgage holders in the United States have locked in a 30 year fixed-rate mortgage of 5% or lower. Impressively, a quarter of these holders have secured a rate of 3% or less.

The Ripple Effect Of Low Mortgage Rates

These historically low mortgage rates are acting as a powerful incentive for homeowners to stay put. Selling and buying a new property often means taking on a new mortgage. For many, this could result in higher monthly payments, given that current rates for new mortgages are now higher than what many existing homeowners are locked into.

This reluctance to sell isn’t just about the numbers, it’s contributing to a palpable tension in the Charlotte housing market. With so few homeowners willing to list their properties, prospective buyers are left with fewer options, which can lead to competitive bidding wars and continually rising home prices.

3. Number of Pending Sales

In July, 1,083 homes in Charlotte accepted an offer. Interestingly, this marks a 1% decrease from June and an 8% drop compared to July of the previous year. At a glance, this might seem like a small shift, but in a bustling market, even slight changes can signal a broader trend.

These lower numbers in accepted offers aren’t occurring in a vacuum. They are directly tied to the number of homes available. With fewer homeowners listing their properties, it’s logical that there will be fewer pending sales. Simply put, fewer listings lead to fewer sales.

New Listings Outpacing Pending Sales

In July, the number of new listings added to the market outpaced the number of pending sales by approximately 5%. This suggests an unexpected dynamic, our inventory is actually growing.

This growing inventory is largely attributable to recent rate hikes. Even in a climate of historically low inventory levels, these rate increases appear to be making a tangible impact on the Charlotte market. What is the result? A steadily increasing number of listings available at any given time, a trend that has held strong throughout this year.

A Sellers Playground: But For How Long? 

Despite the uptick in available homes, make no mistake, Charlotte remains a heavily tilted seller’s market. Buyer affordability has been squeezed significantly due to rising interest rates, and the number of homes available, while growing, is still relatively low compared to demand. This combination continues to favor sellers, who often find themselves fielding multiple offers and enjoying favorable sale conditions.

For sellers, the current market dynamics present an opportune time to capitalize on high demand and potentially secure a premium price for their property. For buyers, the situation is more nuanced. While increased inventory offers more options and potentially less competition for each listing, reduced affordability due to higher mortgage rates presents a significant hurdle.

Navigating A More Patient Market

The classic law of supply versus demand is playing out vividly in Charlotte’s housing market. Inventory levels are indeed inching upward, offering a glimmer of hope for buyers seeking more options. However, this increase is far from the surge needed to genuinely alleviate our housing inventory shortage.

Throughout this year, one trend remains constant, the rise of average home sales prices. Despite the modest uptick in inventory, home prices are not taking a breather. They continue to appreciate, reflecting the sustained demand for properties in Charlotte’s vibrant market.

The average days on market this year has grown by approximately 29% compared to the same period last year. This suggests a subtle, yet potentially significant shift in market dynamics.

4. Number of Closed Homes

In July, the Charlotte housing market saw 975 homes successfully reach the closing table. This figure represents a sharp 24% drop compared to the number of homes closed in June. Even more notably, it marks a 25% decrease from the number of closings recorded in July of the previous year.

It’s important to note that closed data is, by nature, lagging data. It reflects deals that were likely initiated a month or two prior, making it a somewhat delayed indicator of market activity. Nevertheless, a pattern is emerging. Both month over month and year over year comparisons reveal a consistent downward trajectory in the number of closed homes.

Why is Charlotte experiencing this decline in closed transactions? The answer seems to lie largely in the supply side of the equation. Simply put, fewer homeowners are choosing to put their properties up for sale. This reluctance to list is constricting the supply of available homes, which in turn, is resulting in fewer closed deals.

5. Average Sales Price

In July, Charlotte’s housing market observed an interesting turn, the average sales price for a home in July was $534,500. This figure marks an 8% decline from June’s average sales price, but still reflects a solid 6% increase compared to July of the previous year. Notably, July was the first month this year that Charlotte witnessed a decrease in the average sales price.

Just like how we have seasons in the year, the housing market also goes through its own ups and downs. During the later part of summer, house prices usually stop rising so quickly or might even drop a little.

This isn’t something to worry about, it’s just how the market works. As we move further into the year, it will be interesting to see how Charlotte’s housing market changes, especially when compared to the bigger picture of what’s happening everywhere else.

6. Market Overview:

Imagine the housing market as a boat on the ocean. Lately, rising interest rates are like strong winds, pushing and challenging the boat’s direction. If these winds (or rates) keep getting stronger, they might make it tougher for our boat to sail smoothly.

When we step back and look at the past year in Charlotte, things have been going pretty well. The key question now is, how will these increasing rates shape the housing market’s journey in the upcoming months?

The Moves by the Federal Reserve:

Keep a close eye on Jerome Powell and the team there. The decisions they make can stir the waters even more. In their July meeting, Powell hinted at the possibility of interest rates increasing again. He left the door open to further rate hikes when they reconvene in September.

Now, even with the looming prospect of higher rates, Charlotte’s housing market remains robust. Why? We’re seeing a shortage of houses on sale. Think of it like everyone rushing to grab the last few popular toys on the shelf!

However, there’s a catch. If the Federal Reserve does decide to crank up these rates, we might find fewer homeowners wanting to sell their property. After all, why jump ship when it might mean dealing with a pricier loan on the next house? The next few months promise to be a revealing period for Charlotte’s housing market, as it reacts to these broader financial currents.

7. What Does This Mean For Home Sellers

Considering a move? Here’s what you need to know:

• If you decide to sell now, chances are good you’ll get a competitive price for your property. The current inventory in Charlotte is low, and many homes have recently sold above their asking price due to multiple offers.
• On the flip side, if you’re also planning to buy another home, anticipate potentially higher monthly mortgage payments due to rising rates.

If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

8. What Does This Mean For Home Buyers

Is now a good time to purchase a home? Here are some insights:

• Not every prospective buyer should jump into the market at this moment. Housing options are limited due to low inventory. Moreover, the homes that are available face high demand, which might stretch your budget.
• If you’re feeling uneasy about high monthly mortgage payments, it might be worth waiting. Some suggest buying now and refinancing later if interest rates drop. However, it’s unpredictable when or if that will happen. Base your decision on current conditions, not potential future scenarios.
• While some industry watchers think rates might lower slightly by the latter half of 2024, there’s no guarantee they’ll drop below 5% anytime soon. If they do decrease, expect a surge in buyer demand due to the many who have been waiting on the sidelines. This could potentially drive prices up further.
• Despite the challenges, if buying aligns with your personal and financial situation, then it’s a move worth considering. Always prioritize what’s best for you and your family, without banking on uncertain future rate changes.
• Given the resilience of our current housing market, a massive drop in home prices isn’t likely. Instead, we might see a steady growth in home values over the next few years.

In a nutshell, Charlotte’s housing scene is vibrant and ever-changing. While broader market trends provide guidance, the best choices always align with individual needs and circumstances.

Is it a right time for you to buy or sell? 

We would love to connect with you, discuss your real estate goals and help you determine if now is a good time to buy/sell or if it is better to wait. Feel free to call us, text us, or email us. We would love to be your real estate resource of choice! 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

What the heck is going on with the Charlotte North Carolina Housing Market? Rates are higher than ever and home prices are still going up! Are you interested in staying up to date on the Charlotte North Carolina Housing Market? Then this video is for you!

With a rapidly changing market and a myriad of factors influencing home prices, it’s more important than ever to stay informed. Whether you’re a seasoned investor, a first time homebuyer, or someone simply interested in the state of the market, this blog is designed to provide you with the insights you need.

Join me as we delve into the numbers, dissect the trends, and decode the market dynamics that could impact your real estate decisions.

Charlotte North Carolina Housing Market Update:  

July 2023

The Charlotte housing market is currently experiencing a unique dynamic. While new listings are increasing month over month, they’re still below the year over year trends. Active listings are down, and pending listings are decreasing. Despite these challenges, the market remains resilient, with the average sales price continuing to rise. This resilience is a testament to the strength of the Charlotte market, even in the face of national trends and economic factors.

1. Number of New Listings

2. Number of Active Listings

3. Number of Pending sales

4. Number of Closed Homes

5. Average Sales Price

6. Market Overview 
   

7. What Does This Mean For Home Sellers

8. What Does This Mean For Home Buyers

1. Number of New Listings

In June, we saw 1366 new listings hit the market, a 5% increase from May, but a 32% decrease from June 2022. While we’re seeing a month-over-month increase in new listings, we’re still below the year-over-year trends. The lack of housing inventory remains a significant theme in our housing market, with various factors contributing to this shortage.

The decrease in new listings compared to last year is a clear indicator of the ongoing inventory crisis. Homeowners are hesitant to list their properties due to the current market conditions, including high mortgage rates. This hesitancy is contributing to the shortage of homes on the market, creating a challenging environment for buyers.

One of the biggest contributors to this low levels of inventory is a lot of homeowners that would have put their homes on the market are not because they’ve locked in a much lower rate than what’s currently available on the market. It’s discouraging them from actually making a move, buying another house at a much higher rate.

2. Number of Active Listings

The average number of active homes available in June was 3193, a 20% decrease from June 2022. This decrease indicates fewer homes on the market compared to last year. From June to December of last year, we saw the number of active listings climb as homes sat on the market longer due to the effects of higher mortgage rates.

This decrease in active listings is a clear sign of the ongoing inventory shortage. With fewer homes on the market, buyers have fewer options, leading to increased competition and higher home prices. This trend is expected to continue until more homeowners decide to list their properties.

3. Number of Pending Sales

In June, 1140 homes accepted an offer, a 6% decrease from May, and a 14% decrease from June 2022. Despite record low inventory, the number of new listings continuously outpaces the number of pending sales, indicating a potential growth in active inventory.

This decrease in pending listings suggests that buyers are taking more time to make decisions, likely due to the high mortgage rates. So we are seeing that mortgage rates are having an effect on homebuyers out there because they’re making homes less affordable, but the inventory is not increasing fast enough to meet that demand.

For those of you who have recently been in the market either buying or selling, you know, we’re still seeing a lot of competition out there. There are still homes that are receiving multiple offers and selling above asking. But it’s not like the Euphoria we saw in the first half of 2022. And one of the big reasons is buyers affordability and higher mortgage rates.

4. Number of Closed Homes

In June, we saw 1229 homes close, a 1% increase from May, but a 21% decrease from June 2022. So we are still seeing a competitive market where homes are closing. We’re not seeing as many homes close as we saw last year, but it’s because fewer people are choosing to sell their home.

The average days on market for a home in Charlotte is around 31 days, a significant increase from the average days on market this time last year, which was around 20 days.  This could be due to a variety of factors, including higher mortgage rates and increased buyer hesitancy. However, the fact that homes are still closing at a steady rate indicates that the market remains active and competitive.

5. Average Sales Price

Despite high rates and low housing affordability, the average sales price in Charlotte in June was $580,000, a 2% increase from May and a 10% increase from June of last year. This increase shows that the Charlotte area is weathering high rates better than many other areas in the United States.

This increase in the average sales price is a positive sign for homeowners and sellers. It suggests that despite the challenges in the market, home values are continuing to rise. This trend is likely due to the ongoing inventory shortage, which is driving up home prices.

If we look at the US as a whole, we see the average sales price actually dropped year over year by about 1%. So there’s a lot of reasons we’re seeing our local Charlotte market outpace, the United States as a whole. We’re a rapidly growing city, a ton of people are moving here and we’re seeing a lot of growth.

6. Market Overview:

The Charlotte housing market remains competitive due to low inventory and high demand. However, the high mortgage rates are affecting homebuyers’ affordability, leading to a slight increase in inventory. For sellers, it’s still a good time to sell, but they should keep an eye on the creeping inventory. For buyers, the market remains competitive, and they might still find themselves in competitive situations for desirable homes.

The Federal Reserve met again on June 13th and June 14th and actually didn’t raise the prime rate after 10 consecutive rate hikes. While the Federal Reserve chose not to raise rates in June, it doesn’t necessarily signal an end to potential rate hikes this year. It’s crucial to mark your calendars for the Fed’s next meeting on July 25th and 26th. Current predictions from the futures market suggest a 70% likelihood of a rate increase during this meeting. So, while we’ve seen relative stability in rates throughout June, hovering around 7 to 7.5%, we’re not entirely in the clear yet when it comes to potential rate hikes.

7. What Does This Mean For Home Sellers

For home sellers in Charlotte, the current market conditions present a unique opportunity. Despite the high mortgage rates, the low inventory levels mean that there’s less competition for sellers. Many buyers have adjusted to the higher rates and are still actively looking for homes.

In recent weeks, we’ve seen multiple properties hit the market and quickly enter into multiple offer scenarios, often selling above the asking price. With the right marketing strategy and approach, sellers can find significant success in this market.

However, it’s important to keep an eye on the slowly increasing inventory. While it’s not yet enough to meet the high demand, any increase in available homes could potentially impact the seller’s market advantage. 

8. What Does This Mean For Home Buyers

For home buyers, the Charlotte market remains competitive. High mortgage rates and low inventory have created a challenging environment. More homes are coming onto the market, but they’re often snapped up quickly, especially those in desirable areas.

While it’s possible that mortgage rates may not drop in the coming years, it’s also important to consider that once rates start to decrease, many sidelined buyers may jump back into the market. This could potentially lead to a surge in home prices.

Despite these challenges, there are still opportunities for buyers. Homes are sitting on the market slightly longer than before, providing a small window for buyers to make their move. However, buyers should be prepared for potential competitive situations, especially for the more desirable homes on the market.

Remember, the decision to buy, sell, or invest in real estate is a personal one and can vary greatly depending on individual circumstances. If you’re considering making a move in the real estate market, my team and I are here to help guide you through the process.

If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

Is it a right time for you to buy or sell? 

We would love to connect with you, discuss your real estate goals and help you determine if now is a good time to buy/sell or if it is better to wait. Feel free to call us, text us, or email us. We would love to be your real estate resource of choice! 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com