Welcome to our in depth exploration of the housing market in Charlotte for 2024! Whether you’re interested in buying, selling or simply curious about the real estate scene you’ve come to the right place. In this blog we’ll delve into the trends and their implications for you whether you’re on the hunt for a new home considering selling your property or just keeping an eye on market developments. From discussions about mortgage rates, to a broader understanding of housing inventory we’ve got all your bases covered. So grab a cup of coffee. Lets dive right into what drives Charlottes real estate market in 2024. Are you ready? Lets begin!

Charlotte North Carolina Housing Market Update:  

Janurary 2024

1. Mortgage Rates Plummeting  

2. Number of New Listings

3. Number of Pending Sales

4. Number of Closed Homes

5. Average Sales Price

6. 2024 Housing Market Forecast

7. What Does This Mean For Home Buyers?

8. What Does This Mean For Home Sellers?

1. Mortgage Rates Falling:

In recent months, Charlotte, North Carolina’s housing landscape has undergone a significant shift. Mortgage rates, once soaring to a staggering 7.88% in October, have now taken a downward turn, settling around 6.5-6.6% by December’s end. This notable decrease has not only made housing more accessible but has also revitalized the local market.

The ripple effect of this change is profound. The median mortgage rate in the U.S. has plummeted by nearly $400 in just two months, sparking a 10% surge in buyer activity according to Redfin. This upswing is a clear indicator that potential homeowners, who were once hesitant, are now actively seeking opportunities as the cost of borrowing becomes more manageable.

Buyer Behavior in the Current Market

Interestingly, buyers aren’t necessarily driven by the price tag of a property but rather by the affordability of the mortgage payments. The rule of thumb in real estate suggests that a 1% change in mortgage rates can alter a buyer’s purchasing power by approximately 10%. Therefore, this recent adjustment in rates has had a dramatic impact, encouraging those who were previously on the fence to actively engage in the market.

As we dive deeper into the specifics of Charlotte’s real estate scene, we see a market that is rapidly adjusting to these new conditions. The fundamental principle of supply versus demand is at play here, suggesting a robust rebound in activity as mortgage rates continue their descent.

Stay tuned for more insights, including a forecast of what 2024 might hold for Charlotte’s housing market. A deeper understanding awaits as we explore the most current trends and data shaping the future of home buying and selling in this vibrant city.

2. Number of New Listings

The Impact of Lower Mortgage Rates on Home Listings

However, a year-over-year increase in new listings indicates a subtle yet significant shift. As mortgage rates continue to fall, homeowners who were previously hesitant are now more inclined to sell their properties. This trend suggests that the drop in rates is not only influencing buyers but also motivating sellers to enter the market, potentially balancing supply with the increasing demand.

What This Means for Potential Buyers and Sellers

For potential buyers, this could mean a broader range of choices in the coming months. Sellers, on the other hand, might find a more receptive market for their properties. These dynamics emphasize the interconnectedness of various factors in real estate, from mortgage rates to seasonal trends, all playing a crucial role in shaping Charlotte’s housing market.

3. Number of Pending Sales

December in Charlotte’s real estate market revealed some noteworthy trends, particularly in the realm of pending sales. The city saw 727 homes accepting offers, marking an 8% decrease from November, yet showcasing a 12% increase compared to December of the previous year. This pattern aligns with the expected seasonal slowdown due to the holiday period.

Despite the usual holiday dip, December 2023 stood out as the first month of the year where pending sales actually surpassed the number of new listings. This shift is more than just a monthly fluctuation; it’s a crucial indicator of the market’s direction.

Understanding Market Indicators

For those familiar with the nuances of real estate trends, the relationship between pending sales and new listings is a key metric. When pending sales exceed new listings, it signals a decrease in inventory, suggesting a seller’s market where demand is high. Conversely, if new listings outnumber pending sales, the market is likely seeing an inventory increase, leaning towards a buyer’s market.

This significant increase in pending sales, despite the overall decrease from November, underscores the impact of the recent drop in mortgage rates. As borrowing costs become more favorable, we observe a corresponding rise in buyer activity. This trend is crucial for both buyers and sellers to understand, as it shapes the landscape of real estate transactions in Charlotte.

4. Number of Closed Homes

In December there was a rise in the number of homes being closed in Charlottes housing market. A total of 845 homes were closed, which is an 8% increase compared to November. This unexpected growth is quite surprising considering the slowdown during the holiday season.

When looking at the numbers from December 2022 however there was a 7% decrease in the number of homes being closed. This decline from the year suggests that market conditions and buyer behaviors have been undergoing some changes.

There are a factors that could explain the increase in home closures on a monthly basis. One possible influence is the drop in mortgage rates, which might have encouraged more buyers to follow through with their purchases. Additionally as people engaged in end of year planning it’s possible that both buyers and sellers were motivated to close deals before the year ended.

On the hand when comparing to December 2022 this decline indicates broader shifts within the market over the past year. These shifts could be attributed to economic fluctuations and changes, in interest rates.

5. Average Sales Price

The housing market in Charlotte experienced some changes in December when it comes to the average sales price. The average settled at $509,000 showing a 2% decrease compared to November. However it’s worth mentioning that this number still represents a 3% increase from the sales price in December of the previous year.

It’s not uncommon to witness fluctuations in sales prices especially during the winter season. These changes are often influenced by trends as market dynamics shift with weather variations and buyer behavior.

Steady Year Over Year Growth Despite High Mortgage Rates

The noteworthy aspect is the 3% growth compared to the previous year. This growth demonstrates the resilience of Charlottes real estate market in challenging economic conditions and high mortgage rates. It showcases how this market maintains its appeal and stability despite fluctuating circumstances.

The pattern of varying resilient sales prices provides valuable insights, into the adaptability and strength of Charlottes housing market. Potential buyers and sellers can utilize this information to gain an understanding of market dynamics and make well informed decisions for their real estate ventures.

6. 2024 Housing Market Forecast 

The future of the Charlotte housing market in 2024 will be heavily influenced by two factors; mortgage rates and housing inventory. Experts predict a decrease in mortgage rates, which is expected to drive up demand from buyers. However the extent of this decrease is still uncertain. Will play a crucial role.

Forecasts indicate that by the end of 2024 rates may drop modestly to around 6% with a reduction to 5.5% by the end of 2025 as suggested by the National Association of Realtors and the Mortgage Bankers Association. It’s worth noting that while rates are declining they won’t dramatically plummet. The era of low mortgage rates like 2.5% to 3% seems to be behind us for now.

Adjusting to Higher Mortgage Rates

Homebuyers are gradually adjusting to these rates, which suggests that there will likely continue to be strong demand in the market. This resilience, combined with a shortage in housing inventory both locally in Charlotte and nationwide has been a significant factor in maintaining a robust housing market despite higher interest rates.

The shortage of homes for sale has been an issue for, over a decade and remains one of the key reasons why the market has remained resilient.
Given the supply it is anticipated that the housing market will remain strong until 2024.

Shifting Market Dynamics Ahead

In the coming years we can expect a transition towards a balanced market. The era of experiencing year over year hikes in home prices (10%, 15% or 20%) will be replaced by more moderate and sustainable growth. This shift signifies a progression in the market moving away, from rapid surges towards steadier and predictable trends.

7. What Does This Mean For Home Buyers

If you’re planning to buy a home it’s vital to adjust your expectations when it comes to mortgage rates. Setting your sights on the low rates of 2.5% to 3% may not be realistic anymore. The housing market is. So should your approach.

We can realistically expect a reduction in mortgage rates maybe around half a percentage point over the next six to twelve months. While any decrease in rates is advantageous for buyers it’s important to keep our expectations grounded regarding the speed and extent of these changes.

Rising Buyer Demand and Competition

Whenever mortgage rates go down we can anticipate a surge in buyer demand. This increased interest translates into competition for the homes you have your eye on. In a market where demand surpasses supply being prepared to act and decisively is more crucial than ever.

Being well informed and adaptable is key in this dynamic market environment. As competition intensifies with each drop in mortgage rates understanding market trends and being ready, for decision making can give you an advantage when it comes to securing your dream home.

8. What Does This Mean For Home Sellers?

If you’re considering selling your home in 2024 you’ll be happy to know that the real estate market in Charlotte is looking promising. Its expected to continue favoring sellers with demand and limited inventory. This means you can potentially receive offers and enjoy favorable conditions when selling your property.

One important aspect to consider in this market is knowing the value of your home. You can utilize tools available such as the free and instant home valuation link provided in the description to get an accurate estimate of what your property is worth. This information will be crucial for setting the price and making well informed decisions.

To fully leverage the market conditions as a seller it’s essential to understand the latest trends and buyer preferences. Factors like location, property condition and timing within the market can greatly impact the success of your sale.

In conclusion 2024 presents a landscape, for those looking to sell their homes in Charlotte.To make the most of this market it’s important to stay updated make use of the resources at your disposal and consider seeking guidance from experts. 

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. 

Visit Us:

3440 Toringdon Way, ste 205

Charlotte NC 28277