How Much Is My Home Worth? [The Ultimate Guide]

How Much Is My Home Worth? [The Ultimate Guide]

by | Aug 22, 2023 | Blogs and Tips

You’ve worked really hard to turn your house into your home, and chances are it’s your most valuable asset. But how do you determine its actual value?

Checking your home’s value isn’t as easy as quickly checking a random stock price, right? It takes a little bit more time, knowledge, and finesse.

Your home makes up a large chunk of your net worth, not to mention it’s a really big deal. You know, I’ve heard that half of Americans actually cry when selling their home, and those may be tears of joy, tears of sadness, or, frankly, tears of stress. You know, I get it because your home is probably one of the most valuable things that you own.

Today we’ll dive into the different types of home value, the different factors that affects your home’s value, and different market conditions you want to pay attention to as well. We’ll also discuss the online home value estimators and much, much more. Our goal is to lay out a roadmap for you to help you determine your home’s value!

1. Types of Home Values

2. How to Determine Your Homes   Value

3. Home Value Estimator 

4. Reach Out to a Professional Realtor

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1. Types of Home Values 

First off, there’s a few different types of values that we can look at. You have the fair market value, you have the appraised value of your property, and the as is value, or the value an investor would give you for your property.

 

Fair Market Value 

Fair market value is what your home would sell for on the open market, giving every buyer a potential to bid on your home. So you can find the buyer willing to pay you the most amount of money.

But in layman’s terms, the fair market value is what the buyer and seller agree the home is worth and agree to sell the home for. This would be done by having a professional Realtor perform a comparative market analysis and an absorption rate. Statistical analysis is the best way to really determine your fair market value for your home.

How Much Is My Home Worth? [The Ultimate Guide]

Your Home Apprasial

 Your appraised value is how much your mortgage lender determines your home’s value to be at. They come to this value by hiring a licensed appraiser appraise your home. The appraiser will actually take a look at your home, take into account the square feet, bedrooms, bathrooms, the location, the updates you have compared to other properties in the area. They put this in an analysis and put it in an appraisal report to help lenders determine your home’s value.

You’ll usually run into this scenario if you’re selling your home on the open market and the buyer that’s buying your home is planning to finance the property. The lender wants an appraiser to give their opinion on the value to make sure they’re not lending $1,000,000 on a home that’s worth $200,000. You will also find this when you are refinancing the property. A lot of the times, the lender will hire an appraiser to go appraise the value and to get a true estimate of your home’s equity.  

How Much Is My Home Worth? [The Ultimate Guide]

As-is Value | Investor’s cash offer

If you’re considering selling to an investor, your home usually needs some work, and the homeowner doesn’t want to do the work. Your home may not be quite move and ready now, so you just want to sell it and be done with the property.

A lot of times, you’re not going to get the most amount of money for the home, but you may be able to avoid some costly repairs that you may need to do to get that fair market value. Investors usually pay anywhere between 60-80% of fair market value for the home.  Are you interested in learning more about the different types of investors? Click Here to view the blog where we dive deep in the different types of cash offers. 

How Much Is My Home Worth? [The Ultimate Guide]

2. How to Determine Your Homes Value

So now that we know the three different types of home values, we’ll go through the steps that you need to take so you know your home’s value. Step number one, you want to make sure you learn the facts about your home in particular, and also the facts about your local housing market.

1. Learn the facts about your home

Believe it or not, your home’s value is not based on what you purchased it for or how great you think your home is. In a nutshell, your home’s value is basically what buyers are willing to pay you for it. So it may be worth a lot more than what you paid for it, or it may be worth a little bit less.

It really comes down to the condition of your home, the features of your home, and the overall market conditions. Here are some of the main factors you’ll want to consider when you’re really trying to determine your home’s value.

          • Location: One of the biggest factors is location, right? Location, location, location. We all know it. Everybody says it. So, is your home located in a good part of town? Is it close to a lot of shops, restaurants, dining? Can you walk to certain places from your home? Is there a certain aspect of your location that adds value or makes your home less desirable? Is your home waterfront? Does it have a golf course view? Are you on a busy road? A lot of these questions will affect your homes value. 
          • Curb Appeal: Does your home really have that wow factor? When buyers pull up, will they be instantly impressed with your home? 
          • Size: You want to pay attention to your homes square feet. How many bedrooms & bathrooms do you have? How big is it compared to some of the other recent sales in the area? 
          • Layout: Do you have an open concept? Is your home a little more congested and closed off? 
          • Stories: How many stories does your home have? The most expensive thing on any home is the roof and the foundation, so it’s cheaper to build up than it is to build out. What this means is when you’re comparing your home to other homes, pay attention to the amount of stories the home has. If your home is a two story home and has 2,500 square feet and you compare your home to a one story home with 2,500 square feet, it could lead to an incorrect valuation. The one story home is much more expensive to build than your two story home is. 
          • Updates/Renovations:  Buyer’s preferences always change, does your home possess the most modern and desired updates? Do you have granite countertops, quartz countertops? Do you have nice hardwood floors throughout? Is your home freshly painted? Does your home possess a more modern color palette?
A lot of things like that will really play into your home’s value and there is frankly a ton of different factors that go into your home’s actual value and buyers weigh them all differently. It’s a little more of an art than a science. Are you interested in learning more about the updates that will maximize your homes value? Click here to learn the 5 updates you can do to MAXIMIZE your homes value.

2.  Learn The Factors Affecting Your LOCAL Housing Market 

Let’s delve into the core elements of the Charlotte housing market that influence your home’s value. While some of these factors are beyond your control, being aware of them can help you make informed decisions.

          • Mortgage Rates: Now a mortgage is a huge financial decision and a higher rate means higher monthly payments. Buyers don’t buy for price point, they buy for payment. So if you see higher mortgage rates, that could actually discourage a lot of buyers from purchasing properties.
          • Seasonal Trends: You also want to consider the time of year. There’s definitely a lot of seasonal trends at play. When you look at the real estate market, statistically, most homes go under contract March, April and May. So you’re going to see a lot more activity then. Now if you get towards the end of the year when school is already in session, maybe November, December, you’re going to see fewer buyers in the market at that time. So that’s something you want to make sure you consider.
          • Supply vs Demand: If you’re looking on the market and you see that there’s a lot of homes currently sitting on the market, that means you got a lot of competition. This could make it harder for you to sell your home.  Now, if you don’t see many homes for sale and the homes on the market are selling quickly, that probably means there’s a lot of buyers and there’s not much to choose from. This has pretty much been the market that we’ve been in for the past few years. If this is the case, you can be more competitive with your price and really push the envelope to get top dollar. A really good way to judge supply versus demand in your market is really take a look at that absorption rate statistical analysis that judges the amount of months inventory currently in your area.

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3.  Look at Similar Homes that Have Recently Sold

When determining your homes value, you want to take a look at some of the recent homes that have sold either in your neighborhood or right in your area.  Please note, location is key. There can be BIG differences from neighborhood to neighborhood. The farther away you get from your home, the worse that comparable property is.

When you take a look at the homes that have recently sold, it gives you a good idea about what buyers have proven they’re willing to pay for homes in the past. You can compare those homes to your house to help you determine how you compare to them. 

I know there’s a lot of things to take into account when you’re trying to determine your home’s value, but a quick online search going to some of the national websites out there can help you find some recent solds near you.

Reaching out to a trusted Realtor is a great way to streamline the process and really help you determine your home’s value. Realtors have access to much better data sets and can help find and determine the best comparable properties, to ensure that you can get top dollar for your home.  

Mortgage rates

3.  Home Value Estimator 

Another great place to start is to get a free online home value estimate or get an AVM, which means Automated Value Model. If you put your address in Google, a lot of different websites will pop up such as Zillow and Redfin.

You can go on those websites and it’ll give you a lot of facts about your home like the square feet, beds, baths, what you bought it for, and what the previous owner bought it for. All that data is public record. It’ll also give you a rough estimate of your home’s value. Now, a lot of times that value is pretty inaccurate. If you have any questions about the Zillow’s estimate and how accurate it actually is, we shot a video diving deep into that very question. Feel free to check it out below:

There are a lot of AVMs out there and not all of them are created equal. So there are some that are a lot more accurate than others. So if you do want to make sure you follow your home’s value like a pro, we actually have a very accurate AVM model that we offer to all of our clients, friends and neighbors. You can sign up below: 

Our tool is completely free. It’s just a service to help you stay up to date on your home’s value. It gives you monthly reports, and it’s actually powered by CoreLogic, so you know it has the most up to date information available. It pulls tons of different data and resources like market conditions and recent sales in your area to give you an automated value so you can track it month to month.

Our system can also keep you up to date on your home’s equity position based on the estimated price. It’s a great way to really stay in touch with how much money you’re sitting on your home and also track your net worth.

There’s a lot that you can actually do to utilize your equity to build wealth. And if you have any questions or want to know more about that, I shot a video diving deep into that with my buddy and lender, Adam Kelly. Feel Free to check that video out below: 

Those are things that will help you determine how you fit in the market. This is all really great data and information that you can give to your Realtor. When you meet with your Realtor you will discuss your home selling goals and what’s the optimal price that you want to put your home on the market for.

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4. Reach Out to a Professional Realtor

The most accurate way to determine your home’s value is to reach out to a professional Realtor you trust in your local market. Realtors have access to better databases, and can look at your home’s nitty gritty details and compare to the most accurate recent sales and current listings and frankly, no algorithm can do that.

A good Realtor will personally come out and take a look at your home. They will take into account the landscaping, the condition of your home, the layout, and the upgrades that you have spent time and money putting into your property as well.

They’ll also take a look at the local market conditions to really help you determine the best price range so you can maximize your profit. One thing you definitely do not want to do is you don’t want to overprice your home. You definitely don’t want to underprice your home either. There’s definitely a sweet spot that’ll help you maximize your value without putting you in a bad position to lose money.

The true value of your home is not based on a formula. It’s based on what a buyer is willing to pay for your home. There’s a lot of factors to consider when you’re trying to determine the best price point, and these four steps will be your roadmap and your guide to help you find the optimal price point to make sure your home sells as quickly as possible for as much money as possible, while making the process easy as well.

.

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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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Zillow Zestimates: How Accurate Are They?

Zillow Zestimates: How Accurate Are They?

by | May 11, 2023 | Home Ownership Education, Selling My House

In the world of real estate, there’s one topic that consistently ignites a spirited debate among buyers, sellers, and industry professionals alike — the accuracy of Zillow’s Zestimate. Is it trustworthy? Can it be relied upon to determine the true value of your home? Today, we’re going to delve into an unbiased analysis of Zillow’s infamous Zestimate, revealing whether it’s a tool you should be utilizing or not.

Our goal is to take a non biased look at Zillow’s Zestimate and identify if you can use it to accurately estimate your homes value.

Let’s unravel the mystery together, shall we?

Today, we’re going to embark on a two-part journey of discovery. First, we’ll unravel what the Zestimate truly is, and then, we’ll shed some light on the facts often hidden in plain sight. By the end, you’ll have insights you’ve probably never come across before. In this article, we’ll cover:

 

1. What is a Zestimate? 

2. How is a Zestimate Calculated

3. Zestimate’s Accuracy

4. How to Update Your Home’s Information on Zillow.

5. The Role of Zestimates in Today’s Housing Market 

6. What’s Your Home’s True Value?

 

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1. What is a Zestimate?

In simple terms, a Zestimate is Zillow’s estimated market value for a home. Zillow uses a sophisticated algorithm that considers a wide range of information to provide this estimate. The Zestimate is not an appraisal, but it can offer a starting point for understanding a home’s value.

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2. How is a Zestimate Calculated?

Zillow’s Zestimate algorithm uses a proprietary formula, which considers many data points. These can include physical attributes, such as square footage, number of bedrooms, and bathrooms, as well as location-specific elements such as proximity to amenities, neighborhood trends, and local market conditions. It also takes into account historical and current transaction data, like recent sales of similar homes in the same area.

However, it’s important to note that Zestimates don’t account for everything. They don’t consider certain elements, like recent renovations or unique features and interior finishes, as this kind of information might not be available in public records or reported to Zillow.

Obviously, the best way to get an accurate evaluation of your home’s value is to hire an appraiser or chat with an expert real estate agent in your area!

 

3. Zestimate’s Accuracy

Zillow has been transparent about the accuracy of their Zestimates, stating that it has a median error rate of roughly 2-3% for on-market homes. This means that half of the Zestimates are within 2-3% of the selling price, and half are off by more. The accuracy can vary depending on the location and the availability of data in a particular area. To judge Zillow Zestimate’s accuracy levels, there are two different categories of Active, or On-Market listings, and Off-Market listings.

The Active Listings Accuracy section are the homes that are currently listed online. Zillow breaks down the accuracy down by state, but it can be narrowed down to your specific city. Researching Charlotte’s data for homes that were listed online and sold, 78.6% of the time the Zestimate was within 5% of the sales price. 93.8% of the time the Zestimate was within 10% of the sales price.  According to that data, the values are pretty accurate between the Zestimate and the current list price of a home.

Comparing the Off-Market sales data, only 41.44% of the homes sold were within 5% of the Zestimate price. That’s 78% for active listings versus 41% off-market, which is a big difference!  Zillow is much less accurate when it comes to off-market homes than when it comes to active listings. 

Researching homes currently listed for sale in the Charlotte, NC market the Zestimate changes whenever the home is officially listed for sale.  For example, a home is currently on the market listed at $689,000 and the Zestimate is at $702,000, a difference of $13,000.  The Zillow Zestimate appears pretty accurate. When taking a closer look at the home value button on Zillow, it will take you down to a chart that shows a Zestimate chart over time. The Zestimate value shown on the example’s home right before it was listed was $509,000.  When the home was officially listed for sale, the value jumped up to $702,000!  Now, that’s a big difference!

Check out the video for several other examples of Zestimates before and after a home is listed in the active market and how they mimic the actual list price!

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4. How to Update Your Home’s Information on Zillow

The information that Zillow has on your home may be incorrect. There is a way you can update your information on Zillow to get an updated value on your home. Go to Zillow’s website and “Claim Ownership” of your address, verify ownership, and “Update Facts”.  Correcting the number of  bedrooms and bathrooms, square feet of your home, and other features will provide an updated Zestimate.  

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5. The Role of Zestimates in Today’s Housing Market

In today’s digital-driven housing market, Zestimates play a significant role. They offer a quick, easy-to-access estimation of a home’s value. However, Zestimates are a starting point and not a definitive appraisal of a home’s value. They are a helpful tool but should be supplemented with professional appraisal, comprehensive market analysis, and expert real estate advice.

Zestimates are a valuable tool in today’s fast-paced, information-hungry real estate market. They provide homeowners and prospective buyers with an immediate, albeit rough, estimate of a property’s worth. But remember, while they are a good starting point, nothing beats the human touch and local market expertise that a professional realtor can provide.

6. What is Your Home’s true value?

If you’re curious on what your home’s TRUE value is? Want to know how much it could be worth on the market? Sign up for a free home evaluation today! Our expert team will provide you with an accurate and comprehensive report, giving you insight into the current market and helping you make informed decisions about your property. Sign up now and take the first step towards unlocking the TRUE potential of your home!

As your trusted realtor, I’m here to help you make the most of your assets and guide you on this rewarding journey. If you’re ready to explore the possibilities that your home’s equity offers, don’t hesitate to reach out.

Thank you for taking the time to read this article. I’m excited to assist you in unlocking the full potential of your home’s equity and creating a lasting legacy for your family.

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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

 

 

“Find what moves you”
Contact us today

Buy a home
Sell a home

Selling and Buying a House at the Same Time: How You Can Make it Work

Selling and Buying a House at the Same Time: How You Can Make it Work

by | Nov 21, 2022 | Home Sellers and Buyers, Moving to Charlotte NC, Selling My House

In a perfect world, you can put your current house on the market, sell quickly to get your equity out of your home to use for a down payment, and find your next dream home just as quickly. In the real world, however, it’s not always that easy, and you can usually expect some overlap as you navigate how to sell and buy a house at the same time.

At best, you’re dealing with a bit of a juggling act with some element of risk, which can be very stressful. But it does happen, and it happens much more often than you might think. According to the National Association of Realtors, 71% of repeat homebuyers owned their previous residences, which means it’s highly likely that a considerable number of them did double-duty as both buyer and seller.

Knowing that it’s a common situation doesn’t necessarily make it any less nerve-wracking, however! That’s why we wanted to share 4 proven strategies that we employ for our clients  that may work for you if you decide to sell and buy a house at the same time. 

 

1. Sell your home & rent the property back from the buyer

In this scenario, the buyer agrees to rent back the home to the seller for an agreed-upon amount of time (typically, no more than 60 days) after closing. It can be mutually beneficial, saving the seller from the additional expense and inconvenience of moving twice, and providing a little cash inflow for the buyer.

 

2. Sell your home, then move into a short term rental

For some, renting after selling can be the perfect way to avoid the mad rush to find a new place — especially if you’re in a seller’s market with low inventory and fierce buyer competition. You are able to relax, take your time, and find the home that is perfect for you and your family

 

3. Using a bridge loan to help the transition

 

A bridge loan is often used in real estate transactions to provide cash flow during a transitional period, such as while moving from a current residence into a new home. Homeowners can use these short-term loans, which can help quickly put more cash in their pockets, to finance a new home or pay off an existing debt obligation. However, like any form of financing, bridge loans come with their own benefits and drawbacks. 

4. Use Home Buying Programs (i.e Ribbon) 

Many companies, like Ribbon, have created unique programs to help position you to succeed. There are numerous programs and options out there that will allow you to choose what works best for you! 

 

While no one ever said buying and selling at the same time was easy, it is doable. If you are looking to either buy, or sell, and would like to identify which strategy may be the best for you; feel free to call, text, or email us today! 

 

 

 

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Selling and Buying a House at the Same Time: How You Can Make it Work