Get the inside scoop on the Charlotte North Carolina Housing Market with Josh Finigan! With recent activity in the market, everyone’s wondering if it can last. Plus, with mortgage rates rapidly increasing in February, the big question on everyone’s mind is how this will affect the local Charlotte North Carolina housing market.
Join Josh as he reviews the most up to date information on the Charlotte North Carolina housing market. Stay ahead of the news and media, and know exactly whats going on in our local housing market. Don’t miss out, watch the video or read the article now!
Join us today as we dive deep into the Charlotte NC housing market and explore the catalysts and trends that are currently shaping its future. Don’t let fear and doubt control your decisions. Know whats actually going on in our Charlotte housing market, so you can make the best decision for you and your family.
Plus, get an exclusive sneak peek into what we can expect from the Charlotte housing market in 2023. Real estate is a local game, and we’re here to help you navigate it with confidence. Don’t miss out on this informative and exciting discussion. In this article, we will discuss:
Housing Market Overview
Mortgage Rate & Effect On Housing Market
Number of New Listings
Number of Pending Listings
Number of Closed Homes
Average Sales Price
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1. Market Overview
Hold onto your hats, because the Charlotte North Carolina housing market is on fire! February 2023 brought even more heat to an already hot market, with pending sales outpacing new listings for the third month in a row. Translation? Buyer demand is soaring while housing inventory is dwindling. The average home price in Charlotte NC also rose by 3% month over month. It’s a wild ride in our local Charlotte North Carolina housing market, but our experts are here to help you make sense of it all.
So, what’s causing all this frenzy? Look no further than the lower interest rates. From their high point of 7.1% back in November 10th, rates have plummeted to 5.99% by the end of January. Combined with strong seasonal trends, buyers are feeling more confident than ever in their purchasing power and are snatching up properties left and right. Don’t be left in the dust. Stay ahead of the game and tune in now to get the inside scoop on the Charlotte NC housing market!
2. Mortgage Rate & Effect On Housing Market
The mortgage rates have proven to be one of the most influential factors affecting our local housing market. In 2022, November 10th marked the peak of mortgage rates.
However, since then, rates have been steadily declining, reaching an impressive low of 5.99% by the end of January. With the decline in the mortgage rates, we saw very strong pending sale data. The market responded immediately to the increase in buyers purchasing power.
The surge in rates in February made waves in the Charlotte housing market, warranting a closer look from buyers and sellers alike. Rates surged from 6% to 6.65%, causing buyers to lose a staggering 6.5% of their purchasing power within the span of a single month.
This dramatic shift in the mortgage rates remind us that we may see more turbulence in the housing market over the next few months.
The Federal Reserve
The Federal Reserve will meet again March 21 & March 22. The market is predicting the federal reserve to increase the prime funds rate by 25 basis points, however due to recent unfavorable inflation data, many believe a 50 basis point is becoming more and more likely.
We know that the Federal Reserve’s #1 goal is to bring inflation under the 2% target. While we have a long way to go to get below 2%, we’re moving in the right direction.
Selling A House Shouldn’t be Stressful
There is a pro-active way to sell your home that gets results
Why is this important?
Home buyer’s don’t buy for price point, they buy for payment. Remember the rule of thumb, for ever 1% change in mortgage rates, affects a buyers purchasing power by 10%.
Find out how much your house is worth!
3. Number of New Listings
In February, 1017 new listings hit the market, which was an 6% increase from the number of new listings in January 2023. We can expect to see more people list their homes as we get closer and closer to spring, due to seasonal trends of the market. However, we saw a 21% decrease in the amount of new listings year over year. This shows us that many homeowners are still choosing not to put their homes on the market, which is keeping the Charlotte housing inventory low.
The number of new listings coming to the market have continuously decreased throughout 2022 and into 2023. The year over year trends show a huge discrepancy in the amount of homes hitting the market. Most homeowners in the United States have a mortgage rate under 5% (many around 2-3.5%) , which could be persuading them to not make a move. If a homeowner wants to move, they would need to purchase a home at a much higher interest rate.
Selling A House Shouldn’t be Stressful
There is a pro-active way to sell your home that gets results
4. Number of Pending Sales
In February, 1217 homes in Charlotte NC accepted an offer. This was a 12% increase from January 2023 and a 5% decrease from the amount of homes that accepted an offer in February 2022.
Fewer homes listed = Fewer homes accepting offer’s.
We can expect the number of pending sales to increase, due to seasonal trends. However, there was a large increase in the number of pending sales from January 2023 to February 2023. One strong reason for this could be the mortgage rates. As we stated before, the mortgage rates fell by around 1.2% since their highs in November 2022, this means that buyers have 12% more in purchasing power. Buyers affordability had a boost, so we saw a boost in the number of pending sales in February 2023.
One of the best leading indicators for the housing market is the number of new listings compared to number of pending sales. This helps us determine how to project the inventory levels we can expect in the future.
Buyers Market | Increase In Inventory
If the number of new listings continuously outpace the number of pending sales, then we can expect the amount of homes for sale will increase. This means that there will be more homes avaliable and buyers will have more homes to choose from. If this trend continues, then you can expect for the market to eventually transition to a buyers market.
Sellers Market | Decrease In Inventory
If the number of pending sales continuously outpace the number of new listings, then we can expect the amount of homes for sale will decrease. This means that there will be less homes avaliable and buyers will have less homes to choose from. If this trend continues, then you can expect for the market to eventually transition to a sellers market.
February 2023 New Listings: 1017
February 2023 Pending Sales: 1217
This was the third month in a row that the number of pending sales out numbered the number of new listings. There are two factors that could have caused this trend:
1. Homeowners who would have put their homes on the market, are not.
2. The mortgage rates have slightly declined, increasing buyers purchasing power.
5. Number of Closed Homes
In February 816 homes closed in Charlotte, which was a 22% increase from January 2023 and a 30% decrease from February 2022.
We have seen the number of closed homes continue to decrease, mainly due to fewer homes coming on the market. The number of closed homes is a lagging indicator. Since we have seen fewer newer listings and fewer pending homes, we can expect to see the number of closed homes to be lower.
6. Average Sales Price
In February 2023, the average sales price was $470,000. This was a 3% increase from January 2023. Remember, sold home data is a lagging indicator. This means closed home data paints a picture of what happened 30-90 days previously in the housing market.
Most likely, the homes that closed in February 2023, accepted an offer in December or January. This means those buyers could have locked in a lower interest rate (by .75% to 1%), which means they had more purchase power. Due to this, we can expect to see the average sales price increase in March as well. However, the “party” may not last, as we have recently seen the mortgage rates surge. This could put more pressure on the overall housing market, which means we could see the market continue to soften.
Even though Charlotte has seen an average home price drop of 12% since June, we still see a healthy year over year appreciation of 3%. Charlotte is also outpacing the United States as a whole. The United States just experienced the first negative year over year home price appreciation since the Great Recession.
We can expect to see this inflection point to cause fear, uncertainty & doubt in the housing market. The media loves their salacious news, this could scare buyers and make them a bit more timid, causing more ripples in the housing market for March and April.
Even thought the Charlotte, NC housing market has soften, we are still outperforming the United States as a whole. The economic factors plus mortgage rates will affect everywhere, however some cities will be affected more than others.
For home sellers
The market has softened from the peaks we saw in Q1 & Q2, however we are coming off the best time in history to sell a home. You’re still seeing double digit year over year price appreciation. Also, if you bought in 2019, your homes value has increased by 75%. Will you see more competition on the market? Yes! However, homes are still selling, you just need the right agent with the right approach
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.
For home buyers
However, if you are in the market to purchase a home, you will find more avaliable homes to choose from. You may find you can negotiate more on the sales price and other terms. You could ask the seller to pay for your closing costs and/or a home warranty.
Strong strategies for buyers:
1. Ask for the seller to pay for your closing costs, and use the closing cost concession to “buy down” your mortgage rate.
2. If you have a home to sell, you can make an offer contingent on your home selling. Home sale contingencies have been almost impossible over the past few years, however, with the market softening more sellers are open to accepting a home sale contingency.
Should you buy a home right now?
It really depends on what you are looking to accomplish, your goals, and your timeline. If you are wondering if NOW is the right time to purchase, visit Is NOW a Good Time to Buy a House in Charlotte? We explore who should be purchasing a home and who should wait a little bit.
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!
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