Charlotte North Carolina Housing Market Update [July 2023]

Charlotte North Carolina Housing Market Update [July 2023]

by | Jul 14, 2023 | Blogs and Tips

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

Homes For Sale in Charlotte, NC:

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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.

We’ve recently crafted a comprehensive blog post that delves into the reasons behind the current inventory shortage in the United States. If you’re keen to gain a deeper understanding of this issue, click below

Click Here

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.

A recent study by Redfin found that 82.4% of homeowners in the United States have locked in a long term mortgage rate under 5%, and nearly one fourth of homeowners in the United States locked in a rate below 3%. We’ll probably see this continuous trend of homeowners being discouraged to make a move until rates begin to drop.

 

Redfin study. Housing Market

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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.

Average home sale price in the United States

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.

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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. 

Are you considering making a move? Give us a call today, we would love to discuss your goals and the market!

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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. 

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Charlotte North Carolina Housing Market Update May 2023

Charlotte North Carolina Housing Market Update May 2023

by | May 18, 2023 | Charlotte NC Housing Market Update

News flash: The Federal Reserve has upped the ante again, hiking interest rates. And if you’re wondering what kind of ripples this might cause in our bustling Charlotte housing scene, you’re in the right place!

We’re about to deep dive into the latest market insights, the nitty-gritty details that make all the difference. Whether you’re a buyer, a seller, or just a curious spectator in the dynamic game of real estate, we’ve got the lowdown you need.

 

 

So strap in, folks. This is your all-access pass to everything you need to know about the state of the Charlotte housing market. Join us as we peel back the layers of this crucial news and reveal what it means for you in the Queen City.

Charlotte North Carolina Housing Market Update:  May 2023

 

1. Housing Market Overview

2. Mortgage Rate & Effect On Housing Market

3. Number of New Listings

4. Number of Pending Listings

5. Number of Closed Homes

6. Average Sales Price

Homes For Sale in Charlotte, NC:

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1. Market Overview

The Charlotte North Carolina housing market has remained hot over the past few months. Rates have stabilized over the past month, which has lead to a stabilization in our housing market as well. Buyer demand remains high and homes are selling quickly, not as quickly as they have in previous years.. However, the average days on market is falling rapidly. 

It seems buyers have grown accustom to the higher interest rates and are back in the market taking advantage of the Spring/ Summer season. We’re not seeing the euphoria that we saw this time last year, however many homes are selling with multiple offers and above asking.  Our average days on market has declined from 61 days in February to 43 days in April. But it still, on average, takes longer to sell than this time last year.  

 

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.  Mortgage rates over the last decade have been historically low , and they were driven even lower by the massive stimulus campaigns by Jerome Powell and the Federal Reserve during the pandemic. 

The average mortgage rate in 2021 was 2.96%, the lowest we’ve ever seen.  Now though, rates are back up and have more than doubled since the pandemic era lows.  This leaves many would-be buyers who locked in lower rates, in recent years, reluctant to wade back into the real estate market. 

Charlotte Housing Market

We have recently seen the mortgage rates stabilize and hover around the 6-6.5% range.  This has caused our housing market to somewhat stabilize as well. 

Mortgage rates and Housing Market<br />

The Federal Reserve

The Federal Reserve met again May 2nd & May 3rd. The Federal reserve raised the prime rate by 25 basis points. This brought their prime rate to a target of 5-5.25%, which is the highest it’s been since 2007.h However, this may not be bad news for our housing market.  Redfin’s Deputy Chief Economist, Taylor Maru says: “The latest Fed’s rate hike should not affect mortgage rates as it was an expected move.”

Conformation of a pause, which the Federal Reserve all but stopped short of doing could have downward pressure or long-term bond yields and home buyers could see mortgage rate relief.  

The good news is recent data indicates that the Federal Reserves’ tightening policy seems to be working.  Sen though, some analysts say maybe too well – even the ongoing turmoil in the banking sector.  

 

Headline inflation coded to 5% in March – for the first time in nearly 2 years. This is well below the June 2022 peak of 91%.  This is a good sign, even though were far above the Federal Reserve’s 2% goal. 

Which, on the brighter side, Jerome Powell, acknowledged that the committee feels its work is much closer to the end than the beginning.  He signaled a pause may be in the cards BUT he put a Kibosh on the notion of a rate cut anytime soon. 

 

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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%.   

Mortgage rates have a strong impact on the housing market. Inflation and the Federal Reserve’s decisions will affect the mortgage rate.

Find out how much your house is worth!

3. Number of New Listings

In April, 1255 new listings hit the market, which was an 18% decrease from the number of new listings in March 2023. Due to seasonal trends, we should have seen an increase in the amount of homes coming onto the market, however that wasn’t the case.  We saw a 30% 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.

Low inventory isn’t just an issue in Charlotte, North Carolina.  We’re seeing this across the board, all over the United States. New Listings were down 20% year over year in the United States.

Redfin’s Chief economist Daryl Fairweather described the downturn in new listing inventory with a phrase thats been used in the labor markets to describe employees doing minimum work: “Homeowners are quiet quitting the housing market” 

Charlotte Housing Market Low number of homes for sale

Even though the number of new listings hitting the market continues to decrease, the number of active listings on the market is up year over year.  There is an average of 2859 listings on the market this year.  Which is 25% higher than what we saw just a year prior. 

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4. Number of Pending Sales

In April, 1309 homes in Charlotte NC accepted an offer. This was a 0% change from March 2023 and a 12% decrease from the amount of homes that accepted an offer in April 2022.  

Fewer homes listed = Fewer homes accepting offer’s.

So we saw the number of pending sales outpace the number of new listings, and with the exception of March, we’ve seen this trend since December 2022. This is important because this is a strong leading indicator as to where the market is going. The pending sales outpaced the number of new listings – so months inventory is decreasing. Overall, the number of available homes decreased over the past few months. 

 

 

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.

April  2023 New Listings: 1255 

April 2023 Pending Sales: 1309

With the exception of March, this trend has been consistent since December 2022. 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 April 1063 homes closed in Charlotte, which was a 13% decrease from March 2023 and a 27% decrease from April 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 April 2023, the average sales price was $526,500. This was a 2% increase from March 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.  

We’ve seen the mortgage rates stabilize, which has lead to us seeing gradual changes in the price range, rather than extreme fluctuations in the market.  We’re still positive year over year, which is good for you home sellers.  

The average price in the United States is -3% year over year, so we’re outpacing the United States.  This is especially true when you look at markets like Austin, TX & San Francisco California!

For home sellers

The market has recovered over the past few months and home sellers once again have the upper hand.  Year over year prices are still positive and buyer demand is strong.  Also, if you bought in 2019, your homes value has increased by 75%. We aren’t seen the euphoria we saw this time last year, however many homes are selling with multiple offers and above asking.. 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

Buyers purchasing power has been decimated this year. Housing affordability nationwide is the worst it has ever been on record due to spiking home prices and interest rates, Bloomberg reports.

However, if you are in the market to purchase a home, you more homes available.  There will still be competition on the best homes, so make sure you have everything ready to make an offer right when you find your dream home.

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!

 

Let’s Connect Today!

Phone:

704-631-3977

Email:

info@thefinigangroup.com

Visit Us:

3440 Toringdon Way, ste 205

Charlotte NC 28277

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Charlotte North Carolina Housing Market Update March 2023

Charlotte North Carolina Housing Market Update March 2023

by | Mar 7, 2023 | Charlotte NC Housing Market Update

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: 

  1. Housing Market Overview

  2. Mortgage Rate & Effect On Housing Market

  3. Number of New Listings

  4. Number of Pending Listings

  5. Number of Closed Homes

  6. 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.  

Housing Market Charlotte North Carolina Mortgage rates<br />

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.

 

 

Mortgage rates and Housing Market<br />

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.  

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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.

 

 

Charlotte Housing market

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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.  

United States Average home price Redfin

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

Buyers purchasing power has been decimated this year. Housing affordability nationwide is the worst it has ever been on record due to spiking home prices and interest rates, Bloomberg reports. 

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! 

 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

 

 

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Is the Charlotte NC Housing Market Crashing? February NC

Is the Charlotte NC Housing Market Crashing? February NC

by | Feb 9, 2023 | Charlotte NC Housing Market Update

Charlotte NC home prices saw a sharp decline of 8% in January. Is the Charlotte NC housing market crashing? The Charlotte NC housing market is changing rapidly. In January alone the average sales price here in Charlotte NC dropped by 8%. If you’re interested in staying “in the know” about the most up to date information on the Charlotte NC housing market than this video/article’s for you!

Today we will look at the catalysts and trends that are affecting our Charlotte NC housing market, the leading and lagging indicators that can help us identify the current and future state of the housing market. We also discuss what we can expect from the Charlotte housing market in 2023.

 It seems like everyone has their own take on whats going to happen in this housing market.  Everywhere you look, you’ll find headlines preaching fear, uncertainty, and doubt. Our goal is to help you sift through all of the crazy headlines and focus specifically on the greater Charlotte area. Real estate is very local in nature and not all markets will be affected the same.

  1. Housing Market Overview

  2. Mortgage Rate & Effect On Housing Market

  3. Number of New Listings

  4. Number of Pending Listings

  5. Number of Closed Homes

  6. Average Sales Price

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1. Market Overview

The Charlotte NC housing market started out with a ‘Bang’ in January 2023. The amount of pending sales increased rapidly, while the average home price dropped by over 8%. Numerous factors are: The average home price in Charlotte NC has dropped by 14% since the top of the market (In June 2022). However, the amount of pending sales increased by 80% from December 2022 to January 2023. To identify the fluctuation in the housing market, we can take a look at one of the major factors, the mortgage rate. 

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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. We can see that November 10th of 2022 proved to be the peak for mortgage rates in 2022. Since the peak in November, the mortgage rates have steadily fallen to end the year at 6.42%. 

Mortgage Rates in the United States affecting the housing market

In real time, we can see the effects in our local housing markets. Pending sales were very strong towards the end of December and into January. The mortgage rate started at 6.48% in January and steadily fell to over just above 6% at the end of January. 

 

 

When will the Charlotte Housing market crash

The Federal Reserve

The Federal Reserve met again on January 31st & February. At this meeting they raised the federal funds rate by 25 basis points, taking the FED prime rate to a targeted range of 4.5% and 4.75%. This takes the federal funds rate to the highest since October 2007. Currently, the market’s predicting the FED will raise rates one last time in March 2023. After this last rate hike, it’s expected the FED will keep rates where they are until the end of the year. This means, unless worsening inflation data is released, we are getting very close to the end of the FED’s rate hikes.

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.  

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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%.   

 

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3. Number of New Listings

In January, 954 new listings hit the market, which was an 50% increase from the number of new listings in December 2022. We can expect to see more people list their homes as we enter into the new year due to seasonal trends of the market. However, we saw a 19% 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.

 

 

Charlotte Housing market

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4. Number of Pending Sales

In January, 1107 homes in Charlotte NC accepted an offer. This was a 80% increase from December 2022 and a 9% decrease from the amount of homes that accepted an offer in January 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 HUGE increase in the number of pending sales from December 2022 to January 2023. One strong reason for this could be the mortgage rates. As we stated before, the mortgage rates fell by around 1% since their highs in November 2022, this means that buyers have 10% more in purchasing power. Buyers affordability had a boost, so we saw a boost in the number of pending sales in January 2022. 

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.

 

January 2023 New Listings: 954 

January 2023 Pending Sales: 1107

This was the second 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 January 647 homes closed in Charlotte, which was a 28% decrease from December 2022 and a 48% decrease from January 2022. 

We have seen the number of closed homes continuously decline throughout 2022. 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 January 2023, the average sales price was $456,000. This was a 8% decrease from December 2022. 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 January 2023, accepted an offer in mid November 2022.  This means those buyers were faced with the highest mortgage rates of 2022. We know that buyers buy for payment, and they had the lowest affordability. This pressure on buyer affordability shows up in the closed home data of January 2023.  

This means we are now down 14% from the peak of the market in June 2022. 

Even though Charlotte has seen an average home price drop of 6% since June, we still see a healthy year over year appreciation of 6%. Charlotte is also outpacing the United States as a whole. The United States is only seeing a year over year appreciation of 1%. 

Even thought the Charlotte, NC housing market has soften, we are still outperforming the United States as a whole. The economic factors + 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

Buyers purchasing power has been decimated this year. Housing affordability nationwide is the worst it has ever been on record due to spiking home prices and interest rates, Bloomberg reports. 

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? 

It really depends on what you are looking to accomplish, your goals, and your timeline. 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

 

 

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Is NOW a good time to buy a house in Charlotte? Or WAIT for the bottom?

Is NOW a good time to buy a house in Charlotte? Or WAIT for the bottom?

by | Dec 30, 2022 | Home Ownership Education, Moving to Charlotte NC

Today, we will answer the #1 question that almost everyone is asking our real estate team.  Is now a good time to buy a house in Charlotte? 

You might think the answer is obvious, right? There is a potential recession coming in 2023, mortgage applications have dropped to 25 year lows, and buyers affordability has diminished this year. To top that all off, we just had ANOTHER interest rate hike from the Federal Reserve.

So isn’t it obvious? You shouldn’t buy, right? Well, maybe, maybe not. In this article we’re going to be digging a bit deeper than just the headlines. We will take a look at the actual sales data, economic trends, and some basic principles that will help guide you to a good decision for your personal situation.

Is NOW a Good Time To Buy A House In Charlotte? 

 The reality is that some of you should absolutely not be investing in real estate right now.  But, there’s also some of you who should be taking action right now and buying property. 

To answer the question of “Is NOW a good time to buy a house in Charlotte?” we will want to consider a couple important details like your personal financial situation and your job security.

In this article we will cover:

1. Who shouldn’t be buying a house right now?

2. Who should be buying a house right now?

3. Why waiting for the market to “Bottom” is a bad idea. 

 

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Who shouldn't be buying a house right now?

1. Who shouldn’t be buying a house right now?

Homeownership has long been the American dream. A picturesque house of your own with a bright green lawn is deeply ingrained in our culture as something to aspire to. It has helped generations of homeowners build wealth that has been passed down to their children and their children’s children. However, for some of us out there, now may not be a good time to purchase a home. 

A. If you have to stretch yourself financially

If you have to stretch yourself financially, you absolutely shouldn’t be buying a home right now. Think about it, we’ve been experiencing record high inflation right now. If inflation continues at even 4, 5, or 6% in 2023 and your wage doesn’t also increase by 4, 5, or 6% to match those. extra costs then it just means you’re going to feel even more stretched. You don’t want to be “House Poor.”

Rapid inflation

B. If you’re facing any job insecurity

If you have any job insecurity right now, that would be the 2nd reason you wouldn’t want to purchase a property right now. Many experts are predicting that we could see layoffs and higher unemployment in 2023. If you lose your job and are forced to sell in the next 6 to 9 months then you will be in a compromising position. It doesn’t matter if prices don’t come down. Even if they go up a little bit, or stay the same, you could lose thousands of dollars. 

The cost of moving is very expensive and you would be faced with different fee’s and expenses. You can experience mortgage fee’s, you will have to pay movers, and you will be subject to fees associated with agents commissions, lawyers, taxes, etc. These fee’s can add up to 5 to 10% of the value of your property. That’s not something you want to be facing when the economic outlook can potentially be leading towards a recession. 

How much does it cost to sell a house? 

If you are considering selling your home and would like to know how much it ACTUALLY costs to sell your home, then check out our article: Selling your home: How much does it cost to sell a house?  We specifically outline all of the expenses, fee’s, and costs you could experience when selling your home.

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C. If you’re not ready, don’t rush

It seems like every time you turn on the news, they are talking about the recession coming in 2023.  It’s probably the most anticipated recession that’s ever been announced. It’s kind of like we penciled it in.  

So, if we are headed into an economic recession, and you still want to invest in real estate BUT you are not quite ready, DON’T RUSH.  Use this time to prepare yourself to make a much better decision a little bit further down the road. 

If you’re not ready, how should you prepare?

Here’s what I would be doing to prepare myself:

1. The first thing I would do is hop on a bit of a budget. 

2. Lower some of your unneeded expenses (Netflix, Starbucks, things you may not need).

3. Start saving as much as you can and build up an emergency fund. 

4. Pick up a “Side Hustle” to earn some extra cash.

5. Pay off as much debt as you can. 

I know that’s not the sexiest advice, but its the truth.

Anything you can do to prevent yourself from making a hasty, or quick, decision means you will likely put yourself in a better financial position down the road. If you can reduce your expenses, pay off debt, and save more money you will increase your debt to income ratio have a larger down payment.  This could lead you to getting better rates and terms in the future, when you are ready to purchase a home.

 

Budget

The Charlotte labor market is strong!

When it comes to Job insecurity, we do have some great news. The Charlotte NC job market is still very strong. Even if we see higher unemployment rates, and more job loss throughout the US, we will be more insulated from these effects in the greater Charlotte NC area.

So, being in the Charlotte area, you may be in a position to get a better job with better income. This will give you more permanence during uncertain times. 

 

Selling A House Shouldn’t be Stressful

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Who should be buying a house right now?

2. Who should be buying a house right now?

If you are someone who has strong job security, low debt levels, and will not be over extended by a home purchase then now may be a great time for you to buy a home. Here are a few reasons why:

1. Rent prices have skyrocketed: Rental rates in the US and in Charlotte have skyrocketed over the past year, which means that purchasing a home may be more attractively priced than renting a home right now. 

2. House prices have fallen: Pricing is a lot more affordable than it was just 6 months ago. Even in the Charlotte area, we have seen around an 9% decrease in the price of homes in some areas. So you may be able to get into a home at a much better price.

3. Home buyers can now negotiate: Due to the economic trends, there are fewer buyers in the marketplace. This means you will be able to negotiate much favorable terms and can potentially get the home at a much better price.  Home buyers are now able to request the seller to pay for closing costs, request a home sale contingency, or other favorable terms!

4. Charlotte’s Booming: The fundamentals we see here in Charlotte NC are still very strong.  The job growth is still robust, there are a ton of people moving to the greater Charlotte area every day, and the average cost of living is still very attractively priced compared to other metropolitan areas.

Skyrocketing rent prices

So, if you are thinking of making a move, and are in a good position to do so: Don’t worry!  You’re not alone! We have so many people moving to the greater Charlotte area because of the affordability, the high paying jobs, and the great things to do, that we should be insulated from the worst effects of any recession.

It is true, over the past few months the Charlotte real estate market has softened, but not nearly as much as the United States real estate market as a whole.  Inventory is still very low in the greater Charlotte area and we are still selling many of our listings in just a couple of days. 

These are the ingredients that will keep Charlotte insulated from the worst effects from this potential economic downturn we may see in 2023. 

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Why waiting for the market to bottom is a bad idea

3. Why waiting for the market to “Bottom” is a bad idea. 

For those of you on the sidelines, waiting on the real estate market to “bottom,” you may have issues with this strategy. The problem with this is, even if you were able to predict the prices perfectly and they did go down, you’re not going to be able to call the bottom. The reason is, housing is a lagging indicator. This means the data that you would use to indicate we hit the bottom happened 3 to 4 months ago. By the time you knew to act, it would already be too late.  

And if you were able to overcome all of that then you would probably lack the courage to act. It’s not because of something you’re doing wrong, it’s just in our nature. Once we hit the “bottom” we will have peak fear, uncertainty, and doubt. The headlines and news will be so bleak the last thing you will want to do is step into the housing market and make a purchase.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

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There is also an opportunity costs for waiting on the sidelines. While you’ve been waiting on the sidelines, waiting for the bottom, you will be paying those record high rental rates rather than paying that money towards your own equity, in your new home. 

The far better strategy than “trying to time the market” is “time in the market” because no one knows exactly what’s going to happen in the future. One thing we do know though, the longer you do own real estate as an asset, the more likely it is that you will see great returns.

 

We know that all of our clients are looking to accomplish different goals on different timelines. If you are curious if NOW is the right time for you to make a move, we would love to sit down with you and discuss your personal situation and see if now is in fact a good time to sell. Feel free to call, text, or email us today! 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

💻Website: www.thefinigangroup.com

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. 

 

“Find what moves you”
Contact us today

Buy a home
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