Whats Next for The 2025 Housing Market?

Whats Next for The 2025 Housing Market?

by | Dec 27, 2024 | Charlotte NC Housing Market Update

Whats Next for The 2025 Housing Market?

The Charlotte housing market has been anything but predictable lately. After years of skyrocketing prices and intense competition, things are finally starting to shift. But what does that mean for you? Whether you’re a homeowner, a prospective buyer, or just someone with a keen interest in real estate, it’s essential to understand the forces at play.

This blog will be your guide to navigating the Charlotte housing market in 2025. We’ll delve into the latest trends, analyze key factors like interest rates and inventory levels, and provide valuable insights to help you make informed decisions.

Get ready to uncover the secrets of the Charlotte real estate scene and discover what the year ahead may hold. Let’s get started!

Looking Back at 2024

Before we dive headfirst into 2025, let’s take a quick glance in the rearview mirror at 2024. Nationally, the real estate market experienced a bit of a slowdown, and Charlotte definitely followed that trend. We saw a noticeable decrease in the number of homes sold compared to the red-hot market of 2021 when seemingly everyone was buying and selling.

But here’s where things get interesting: one of the biggest shifts we observed in 2024 was a steady increase in the number of new listings hitting the market each month. Remember those dramatic interest rate hikes that started back in March of 2022? Well, they finally started to have a real impact on seller behavior. Many homeowners who had locked in those incredibly low mortgage rates were understandably hesitant to sell and take on a new mortgage with a much higher interest rate. It just didn’t make financial sense for a lot of people.

However, as 2024 progressed, we saw more and more of those homeowners decide to bite the bullet and make a move anyway. Life happens, right? People need more space, they need less space, they relocate for jobs, families grow… All those factors that motivate people to move were still in play, even with higher interest rates. This led to that increase in inventory we saw as the year went on.

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What the Experts Predict for 2025

Now, let’s zoom out a bit and see what the experts are saying about the national housing market in 2025. Economists are predicting a few key trends. First, they anticipate an increase in the overall number of homes sold across the United States. This makes a lot of sense, as lower interest rates are expected to entice more buyers back into the market. When it’s more affordable to borrow money, more people can afford to buy homes.

They’re also forecasting a period of more moderate price growth, somewhere around 2% nationally. This is a welcome change from the rapid price increases we saw in recent years. While some appreciation is healthy, double-digit growth isn’t sustainable in the long term.

And finally, the general consensus is that mortgage rates will gradually decline throughout the year. This is probably the most anticipated prediction! Everyone’s hoping to see those rates come down and make homeownership more attainable.

Now, while I think Charlotte will generally align with these national trends, I do believe our market has some unique characteristics that will set us apart and lead to even stronger performance.

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My Predictions for the Charlotte Housing Market

Here’s where I think things get really exciting! I’m predicting that Charlotte will experience a much more significant jump in home sales in 2025 compared to the national average. Why am I so bullish on Charlotte? Well, for starters, Charlotte is simply a hot market! People are moving here from all over the country, drawn by our strong job market, vibrant culture, and excellent quality of life. We have a ton of pent-up buyer demand. Remember all those folks who were essentially priced out of the market when interest rates went through the roof? They’re eager to buy, and as rates begin to fall, they’ll be back in the game with a vengeance.

Plus, we have a lot of homeowners who purchased homes during the pandemic buying frenzy who may now be looking to make a change. Maybe they need more space for their growing family, or perhaps they’re looking to downsize now that the kids have moved out. These “move-up” and “move-down” buyers will add even more fuel to the fire and drive market activity.

Home Prices

When it comes to home prices, I’m confident that Charlotte will continue to outperform the national average. We’re a rapidly growing city with a strong economy, a diverse range of industries, and a fantastic quality of life. People want to live in Charlotte, and that demand will continue to drive prices upward.

While I don’t think we’ll see a return to the double-digit price increases of the past few years, I do anticipate healthy appreciation in the 5-6% range. Charlotte’s desirability and continued growth will help to insulate our market from any significant price corrections.

It’s important to remember that real estate is a long-term investment. While there will always be fluctuations in the market, Charlotte’s strong fundamentals make it a great place to invest in real estate.

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Mortgage Rates

Mortgage rates are a huge factor in the real estate market, and I’m watching them very closely. I tend to agree with the experts that we’ll see a gradual decline in mortgage rates throughout 2025. We’ve already seen the Federal Reserve start to lower rates, and I believe that trend will continue. This is good news for buyers!

My prediction is that we’ll see rates settle somewhere in the high 5% to low 6% range by the end of the year. One thing I’ve noticed is that every time mortgage rates dip closer to 6% or even into the 5s, we see a huge surge in buyer activity. So, if you’re thinking about buying, keep a close eye on those rates!

Of course, it’s impossible to predict the future with 100% certainty. There are always unforeseen factors that can influence the market. But based on current trends and expert opinions, I’m optimistic that mortgage rates will continue to trend downwards.

Charlotte’s Growth

I’ve lived in the Charlotte area practically my whole life, and it’s been incredible to witness its transformation firsthand. Charlotte is growing and evolving at an amazing pace, and I truly believe it’s all for the better. Yes, traffic can be a bit of a challenge these days, but that’s a sign of a thriving city!

There are so many exciting things happening in Charlotte: new businesses are opening, cultural attractions are expanding, and fantastic new residential areas are popping up all over the place. From the bustling Uptown area to the charming neighborhoods surrounding the city, there’s something for everyone in Charlotte.

It’s a dynamic city with a bright future, and I’m incredibly optimistic about what lies ahead for Charlotte. I’m proud to call this city home, and I’m excited to see what the future holds.

Connect with Us

Whether you’re a first-time homebuyer, looking to upgrade to a larger space, or ready to downsize for a new chapter in life, the Finngeiger team is here to guide you through the Charlotte real estate market. We have a deep understanding of the local trends, neighborhoods, and the intricacies of buying and selling real estate.

We’re passionate about helping our clients achieve their real estate goals. We believe in building strong relationships with our clients, providing honest and transparent advice, and going the extra mile to ensure a smooth and successful transaction.

So, if you’re thinking about buying or selling a home in the Charlotte area, we encourage you to reach out to us. Give us a call, shoot us a text, or send us an email. We’d love to chat with you, answer any questions you might have, and help you navigate the exciting world of Charlotte real estate.

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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

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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 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%.   

 

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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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