Mortgage Rates PLUMMET Charlotte NC Housing Market Update November 2023

Mortgage Rates PLUMMET Charlotte NC Housing Market Update November 2023

by | Nov 14, 2023 | Charlotte NC Housing Market Update

The mortgage rates plummet after the Federal Reserve’s most recent meeting. Could this reinvigorate our local housing market? There’s a lot to unpack. In this month’s Housing market update, we saw the Federal Reserve meet again. We’ve seen that price decreases are on the rise and our housing inventory is increasing as well. We will cover all this and more this month as we review Charlotte, North Carolina’s housing market.

The Current State of Charlotte’s Housing Market

As we dive into November, Charlotte’s housing market presents a mixed bag of trends and opportunities. The Federal Reserve’s latest meeting has led to a significant drop in mortgage rates, potentially breathing new life into the market. This month, we’ve observed a notable increase in housing inventory coupled with rising price decreases. These developments could signal a shift in the market dynamics, offering both challenges and opportunities for buyers and sellers alike.

 In this post, we’ll explore the macro and micro trends affecting our housing market. We will review the most up-to-date local statistics, mortgage rates, the federal reserve, and some expert advice to help you if you’re considering buying or selling in our market.  

Charlotte North Carolina Housing Market Update:  

October 2023

 

1. The Federal Reserve & Mortgage Rates

2. Number of New Listings

3. Number of Pending Sales

4. Number of Active Listings

5. Number of Expired & Withdrawn Listings

6. Number of Closed Homes

7. Average Sales Price

8. Market Overview

9. What Does This Mean For Home Sellers?

10. What Does This Mean For Home Buyers?

Charlotte NC Housing Market

1. The Federal Reserve & Mortgage Rates

On October 31st and November 1st, the Federal Reserve held a pivotal meeting, resulting in a decision that’s set to impact home buyers and sellers alike. In a move that brought a collective sigh of relief, they announced that rates would remain steady, between 5.25% and 5.5%. This stability is certainly welcoming news in the real estate world.

A Word of Caution from Jerome Powell

However, it’s not all clear skies ahead. Jerome Powell, the Federal Reserve Chair, hinted at the possibility of another rate hike during their next meeting on December 12th and 13th, the final one for 2023. This leaves the door open for a potential increase in rates before the year wraps up.

Mortgage Rates Take a Dip

Post meeting, the mortgage rates took a surprising turn, dropping from just above 8% to slightly below 7.5%. This half a basis point change might seem small, but its impact is significant. Remember, in the world of real estate, it’s not just about the price, it’s about the payment.

Charlotte NC Housing Market

The Rule of Thumb in Mortgage Rates

There’s a rule of thumb in real estate that every 1% change in mortgage rates alters a buyer’s purchasing power by approximately 10%. So, with the recent shift, buyers can now afford about 5% more house than they could just a couple of weeks ago. In Charlotte, where the average sales price is considered, this translates to an increase in purchasing power of around $25,000.

A Potential Boost for Home Buyers

This recent change in mortgage rates could be the spark needed to reinvigorate home buyers and add some zest to our local housing market. It’s a development that could potentially increase activity, at least in the short term, giving both buyers and sellers new opportunities in Charlotte’s dynamic housing landscape.

The Rule of Thumb in Mortgage Rates<br /> There's a rule of thumb in real estate that every 1% change in mortgage rates alters a buyer's purchasing power by approximately 10%. So, with the recent shift, buyers can now afford about 5% more house than they could just a couple of weeks ago. In Charlotte, where the average sales price is considered, this translates to an increase in purchasing power of around $25,000.<br /> A Potential Boost for Home Buyers<br /> This recent change in mortgage rates could be the spark needed to reinvigorate home buyers and add some zest to our local housing market. It's a development that could potentially increase activity, at least in the short term, giving both buyers and sellers new opportunities in Charlotte's dynamic housing landscape.<br />

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2. Number of New Listings

In October, the Charlotte housing market saw a total of 1,212 new listings hit the market. This figure marks a 1% decrease from the number of new listings that appeared in September and it is down by 2% when compared to October 2022. 

Comparing Yearly Trends

The number of new listings are almost on par with last year’s numbers, a notable point for those who’ve been tracking our monthly updates. This year has seen a huge decrease in the number of new listings compared to the previous year. The persistently low levels of housing inventory have played a crucial role in shaping the dynamics of Charlotte’s housing market. This scarcity of available homes has not only intensified competition among buyers but also contributed to a steady increase in home prices. With fewer options on the table, buyers are often finding themselves in bidding wars, pushing prices upwards.

 

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

Click Here

The Ripple Effect Of Low Mortgage Rates

These historically low mortgage rates are acting as a powerful incentive for homeowners to stay put. Selling and buying a new property often means taking on a new mortgage. For many, this could result in higher monthly payments, given that current rates for new mortgages are now higher than what many existing homeowners are locked into.

This reluctance to sell isn’t just about the numbers, it’s contributing to a palpable tension in the Charlotte housing market. With so few homeowners willing to list their properties, prospective buyers are left with fewer options, which can lead to competitive bidding wars and continually rising home prices.

October’s Encouraging Sign

One uplifting aspect of October’s market was the number of homes that accepted offers. This shows that, despite the market’s ups and downs, Charlotte’s housing scene remains active and resilient, with buyers and sellers still keenly engaged in the market.

 

Charlotte NC housing market

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3. Number of Pending Sales

 

In October, 937 homes in Charlotte accepted an offer. This marks a 8% increase from September and an 6% rise compared to October 2022. Defying typical seasonal trends, this surge in pending sales highlights a bustling period of activity in our local market.

Personal Insights from the Field

From my own experience, having personally closed deals on 13 homes in October, I can attest to this uptick in market activity. It’s a trend that deserves attention, especially considering that mortgage rates remained high throughout the month. 

Balancing New Listings and Pending Sales

Interestingly, the number of new listings in October outpaced pending sales. This means more homeowners listed their properties than those that had offers accepted, a pattern we’ve observed throughout the year. This is a key indicator suggesting a growth in housing inventory. This trend, where more homeowners are listing their properties than those securing offers, has been a consistent theme throughout the year. It’s a fascinating development, indicating a gradual shift in the market’s rhythm.

A Market in Transition

This rise in inventory suggests that Charlotte’s housing market is possibly transitioning from the extreme seller’s market we’ve seen in recent times. It’s a development that requires both buyers and sellers to stay informed and adapt their strategies accordingly. For buyers, it’s an opportunity to find homes that might have been out of reach in a tighter market. For sellers, it’s a reminder to focus on presenting their homes attractively to stand out in a gradually expanding market.

 

4. Number of Active Listings:

October marked a notable point in Charlotte’s housing market, particularly in terms of active listings. The average number of homes available for sale at any given time was 3,178. This represents a 5% increase from September, indicating a slight but significant uptick in available properties.

Year-Over-Year Comparison

However, when we compare these figures to the same period last year, there’s a stark contrast. We’re looking at a 17% decrease in active homes compared to last year. This year-over-year comparison is crucial as it highlights the ongoing trend of fewer homes being available in the market, despite the recent increase in active listings. 

Contextualizing the Current Market

While the increase in active listings might seem like a positive shift, it’s essential to view it in the broader context of the year’s trends. Throughout the year, the number of new listings consistently outpaced pending sales. However, the overall number of active listings at any given time has been on a decline. This was partly due to a significant rise in expired and withdrawn listings over a few months.

A Shift in the Recent Trend

October’s data, however, paints a slightly different picture. This month diverged from the recent trend, showing an increase in active listings. This change is noteworthy as it could signal a shift in the market dynamics, offering more options for buyers who have been navigating a tight market.

 

Charlotte NC Housing Market

5. Number of Expired/ Withdrawn Listings

In October, we observed a decrease in the number of expired and withdrawn listings. Specifically, 1,279 homes were either expired or withdrawn from the market. This figure represents a 4% decrease compared to September, indicating a subtle yet noteworthy shift in seller behavior and market conditions.

Balancing Active Listings with Market Withdrawals

This change becomes even more significant when we consider it alongside the 5% increase in active listings during the same period. The simultaneous occurrence of these two trends, an increase in active listings and a decrease in expired/withdrawn listings. This paints a complex picture of the current market dynamics.

Interpreting the Market Indicators

The relationship between new inventory, pending sales, and the number of expired/withdrawn listings is a critical one. It provides valuable insights into the health and direction of the housing market. In this case, the decrease in expired and withdrawn listings, coupled with the increase in active listings, suggests a market that is slightly shifting gears.

What This Means for the Charlotte Market

These trends are leading indicators that help us gauge the future trajectory of the housing market. The decrease in expired and withdrawn listings could imply that sellers are either more confident in the market or adjusting their strategies to align with current buyer demands. It might also indicate that homes are being priced more realistically, aligning better with buyer expectations and market values.

The Bigger Picture

For buyers and sellers alike, understanding these nuances is key to making informed decisions. Sellers might take this as a sign of a stabilizing market, where their properties have a better chance of selling without the need to withdraw or let listings expire. Buyers, on the other hand, can interpret this as a signal of a competitive market with fewer homes being pulled off the market.

In summary, October’s decrease in expired and withdrawn listings, against the backdrop of an increase in active listings, offers a unique perspective on the evolving Charlotte housing market. It’s a reminder that in real estate, every trend and shift counts in understanding the bigger market picture.

6. Number of Closed Homes

In October 863 homes sold, marking a 15% decrease from September. More strikingly, this represents a 19% drop compared to the number of homes that closed in October of the previous year.

Year-Over-Year Decline & Its Implications

This 19% year-over-year decrease is quite telling. It underscores a trend where fewer homes are entering the market, leading to fewer homes going under contract and, consequently, fewer homes reaching the final stage of sale. This pattern is a clear indicator of the changing dynamics in the local real estate market.

The Impact of Higher Mortgage Rates

One of the key factors behind this trend is the recent rise in mortgage rates. This increase has led to an unexpected consequence. Many homeowners are choosing not to sell. With 80% of homeowners in the United States currently enjoying a mortgage rate of 5% or lower, and a significant 33% locked in at rates below 3%, there’s a reluctance to move. These low rates have essentially ‘trapped’ people in their current homes, as they are hesitant to give up these favorable rates for the uncertainty of a new mortgage.

The Role of Low Housing Inventory

This reluctance to sell has contributed to the low levels of housing inventory, one of the most significant factors in maintaining the stability of our housing market. With supply at an all time low, buyers have had fewer options to choose from. Despite this, there remains a strong demand with many buyers actively searching for homes.

7. Average Sales Price

In October, Charlotte’s housing market saw the average sales price settle at $537,000. This figure represents a slight dip from September’s average, yet it’s important to note that it still signifies a 9% increase compared to October of the previous year.

Fluctuations & Year-Over-Year Growth

The average sales price in the Charlotte area has experienced some fluctuations over the past few months. Despite these variations, the year-over-year trend reveals a robust increase in the average sales price. This growth is a testament to the resilience of the housing market in the area, even in the face of challenging economic conditions.

The Impact of Higher Mortgage Rates

The recent period has been marked by significantly higher mortgage rates, which have inevitably impacted buyer affordability, now at near all time lows. These higher rates are beginning to take a toll on home buyers, as evidenced by the changing dynamics in the market.

Market Resilience Amidst Challenges

Despite these hurdles, the Charlotte housing market has shown a remarkable degree of resilience. The steady year-over-year increase in the average sales price indicates a market that, while adjusting to new economic realities, continues to maintain its strength and appeal.

.

Charlotte NC Housing Market

8. Market Overview

Inventory Trends:

    • In October, there was a 5% increase in active listings compared to September, totaling 3,178 homes.
    • However, this represents a 17% decrease compared to the same period last year, indicating a long-term reduction in available homes.

Market Dynamics:

      • The number of new listings slightly decreased compared to last year, reflecting a trend of fewer homes entering the market.
      • Despite more new listings than pending sales, overall inventory remains low.
      • Expired and withdrawn listings decreased by 4% in October, affecting the overall market dynamics.

Sales & Prices:

    • Home closures in October decreased by 15% from September and 19% year-over-year.
    • The average sales price in October was $537,000, a slight decrease from September but a 9% increase from October of the previous year.
    • High mortgage rates have impacted buyer affordability and influenced market trends.

Mortgage Rates and Buyer Impact:

    • Post Federal Reserve meeting, mortgage rates dropped from just above 8% to below 7.5%.
    • This decrease in rates potentially increases buyer purchasing power by about 5%, equating to around $25,000 more in buying capacity.

Seller & Buyer Considerations:

    • Homeowners are hesitant to sell due to low mortgage rates locked in previous years.
    • Buyers face a market with limited supply but potentially more purchasing power due to recent rate decreases.

Future Outlook:

    • The market’s direction will be influenced by the Federal Reserve’s decisions in upcoming meetings.
    • Any further decrease in mortgage rates could increase competition among buyers.

 

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9. What Does This Mean For Home Sellers

For home sellers in Charlotte, NC, the current housing landscape may seem somewhat different than in the recent past. Here’s a breakdown of what’s happening and what you need to consider:

Market Stability Despite Challenges: Despite the overall decrease in the number of homes sold year-over-year, the Charlotte housing market remains relatively stable. The average sales price in October was $537,000, showing a healthy 9% increase from October of the previous year. This indicates that while the volume of transactions may be lower, property values are still appreciating.

Impact of Low Inventory: The current low inventory levels are a significant advantage for sellers. With fewer homes on the market compared to last year, sellers face less competition. This can lead to more favorable selling conditions, such as better offers and potentially quicker sales.

Influence of Mortgage Rates: The recent drop in mortgage rates, from just above 8% to below 7.5%, could reinvigorate buyer interest and activity in the short term. For sellers, this means there might be an increase in the pool of potential buyers, especially as buyers’ purchasing power has increased slightly.

Charlotte Home Sellers, What Should You Consider? 

Optimal Time to Sell: With the current market conditions, including the slight increase in active listings and the decrease in expired and withdrawn listings, it’s a favorable time for sellers to enter the market. The reduced competition and potential increase in buyer interest create a conducive environment for selling.

Pricing Strategy: Given the stable yet fluctuating market conditions, pricing your home correctly is crucial. The market shows resilience with a steady increase in average sales prices, but being mindful of current trends and buyer affordability is key to attracting serious offers.

Future Market Trends: Sellers should keep an eye on the Federal Reserve’s decisions and mortgage rate trends. Any further reduction in rates could lead to increased buyer activity, while a hike could dampen it. Staying informed will help in making timely and strategic decisions regarding the sale of your property.

In conclusion, for home sellers in the Charlotte area, the current market presents a unique set of opportunities. The combination of low inventory, increasing average sales prices and fluctuating mortgage rates creates a potentially advantageous situation for sellers ready to enter the market

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. 

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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10. What Does This Mean For Home Buyers

For potential homebuyers in Charlotte, NC, navigating the current market might seem daunting. Let’s break down the current situation and key considerations for those looking to make a purchase:

Challenging Inventory Levels: The current market is characterized by low inventory levels, with a 17% decrease in active listings compared to last year. This means buyers have fewer options to choose from, which can lead to a competitive buying environment.

Recent Increase in Listings: There was a slight increase in active listings in October compared to September. While this offers a bit more choice, the overall low inventory still makes it a seller’s market.

Impact of Mortgage Rates: The recent decrease in mortgage rates, from just above 8% to below 7.5%, is beneficial for buyers. This reduction can increase purchasing power, allowing buyers to afford more expensive homes than they could have just a few weeks prior.

Charlotte Home Buyers, What Should You Consider?

Market Timing: For buyers, navigating the current market requires a balance of urgency and caution. The slight increase in inventory provides more options, but the overall low supply means good properties may still sell quickly.

Budget & Affordability: With the average sales price in Charlotte at $537,000 and showing a 9% increase from last year, buyers should be mindful of their budget. The recent drop in mortgage rates can help, but it’s important to factor in long-term affordability, especially with the possibility of future rate hikes.

Strategic Approach: Buyers should be prepared for potential competition and have their financing in order. Working with a knowledgeable real estate agent can help navigate the market, make competitive offers and find the right property within budget constraints.

Future Market Trends: Keeping an eye on mortgage rate trends and Federal Reserve decisions is crucial. Any further decrease in rates could make buying more attractive, while an increase might reduce affordability.

In conclusion, for home buyers in the Charlotte area, the current market presents both challenges and opportunities. The key is to stay informed about market trends, be clear about budget limitations, and act decisively when the right opportunity arises. With strategic planning and a thorough understanding of the market, buyers can navigate these conditions successfully.

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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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Mortgage Rates EXPLODE! [Charlotte Housing Market Update] -August 2023

Mortgage Rates EXPLODE! [Charlotte Housing Market Update] -August 2023

by | Aug 17, 2023 | Blogs and Tips

The Federal Reserve has done it again. Interest rates have been raised, this time reaching a peak that we haven’t seen in over two decades. This historic increase is making waves across the nation, leaving many to wonder, how will this affect the housing market? In this blog post, we will delve into what these changes mean for real estate, with a specific focus on the housing landscape in Charlotte, North Carolina.

Charlotte North Carolina Housing Market Update:  

August 2023

 

1. The Federal Reserve And Mortgage Rates

2. Number of New 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. The Federal Reserve & Mortgage Rates

In a significant move, the Federal Reserve has raised the Fed Fund rate to 5.5%. This is a notable shift, marking the highest level this key interest rate has reached since 2001.

Surging Mortgage Rates: Crossing the 7% Threshold 

Following the Federal Reserve’s decision, mortgage rates responded dramatically. In July, they surged past the 7% mark, a level that we haven’t seen in years. This sharp increase is a game-changer for many prospective homebuyers, as it significantly impacts what they can afford.

Higher mortgage rates invariably translate to higher monthly payments for borrowers. As a result, this rise in rates is further tightening the screws on buyers’ affordability. For many prospective homeowners, this might mean having to set their sights on smaller, more affordable properties, or considering different neighborhoods than they originally planned.

An Ongoing Inventory Crunch 

As if surging mortgage rates weren’t enough of a challenge, the housing market is still grappling with another critical issue: a lack of available homes for sale. This inventory crunch is a nationwide phenomenon, and it’s hitting us close to home here in Charlotte.

The numbers don’t lie. Current data clearly illustrates the severe inventory shortage in our backyard. With fewer homes available, buyers are often forced into bidding wars, pushing prices even higher in a market that is already challenging due to rising mortgage rates.

Looking Ahead in the Charlotte Housing Market 

As we navigate these unprecedented waters, it’s essential to stay informed and prepared. Whether you are a buyer feeling the pressure of these compounding factors or a seller questioning how this will affect your sale, the landscape of the Charlotte housing market is shifting and we are here to guide you through it. 

2. Number of New Listings

In July, the Charlotte housing market saw a total of 1,134 new listings hit the market . This figure marks a 17% decrease from the number of new listings that appeared in June, and it is notably down by 34% when compared to July of the previous year 2022.

Charlotte Housing Inventory: A Significant Dip!

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.

So, why are so many homeowners refusing to make a move? A key factor appears to be the current state of mortgage rates. A substantial 80% of mortgage holders in the United States have locked in a 30 year fixed-rate mortgage of 5% or lower. Impressively, a quarter of these holders have secured a rate of 3% or less.

 

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

Click Here

The Ripple Effect Of Low Mortgage Rates

These historically low mortgage rates are acting as a powerful incentive for homeowners to stay put. Selling and buying a new property often means taking on a new mortgage. For many, this could result in higher monthly payments, given that current rates for new mortgages are now higher than what many existing homeowners are locked into.

This reluctance to sell isn’t just about the numbers, it’s contributing to a palpable tension in the Charlotte housing market. With so few homeowners willing to list their properties, prospective buyers are left with fewer options, which can lead to competitive bidding wars and continually rising home prices.

 

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3. Number of Pending Sales

 

In July, 1,083 homes in Charlotte accepted an offer. Interestingly, this marks a 1% decrease from June and an 8% drop compared to July of the previous year. At a glance, this might seem like a small shift, but in a bustling market, even slight changes can signal a broader trend.

These lower numbers in accepted offers aren’t occurring in a vacuum. They are directly tied to the number of homes available. With fewer homeowners listing their properties, it’s logical that there will be fewer pending sales. Simply put, fewer listings lead to fewer sales.

New Listings Outpacing Pending Sales

In July, the number of new listings added to the market outpaced the number of pending sales by approximately 5%. This suggests an unexpected dynamic, our inventory is actually growing.

This growing inventory is largely attributable to recent rate hikes. Even in a climate of historically low inventory levels, these rate increases appear to be making a tangible impact on the Charlotte market. What is the result? A steadily increasing number of listings available at any given time, a trend that has held strong throughout this year.

A Sellers Playground: But For How Long? 

Despite the uptick in available homes, make no mistake, Charlotte remains a heavily tilted seller’s market. Buyer affordability has been squeezed significantly due to rising interest rates, and the number of homes available, while growing, is still relatively low compared to demand. This combination continues to favor sellers, who often find themselves fielding multiple offers and enjoying favorable sale conditions.

For sellers, the current market dynamics present an opportune time to capitalize on high demand and potentially secure a premium price for their property. For buyers, the situation is more nuanced. While increased inventory offers more options and potentially less competition for each listing, reduced affordability due to higher mortgage rates presents a significant hurdle.

Navigating A More Patient Market

The classic law of supply versus demand is playing out vividly in Charlotte’s housing market. Inventory levels are indeed inching upward, offering a glimmer of hope for buyers seeking more options. However, this increase is far from the surge needed to genuinely alleviate our housing inventory shortage.

Throughout this year, one trend remains constant, the rise of average home sales prices. Despite the modest uptick in inventory, home prices are not taking a breather. They continue to appreciate, reflecting the sustained demand for properties in Charlotte’s vibrant market.

The average days on market this year has grown by approximately 29% compared to the same period last year. This suggests a subtle, yet potentially significant shift in market dynamics.

4. Number of Closed Homes

In July, the Charlotte housing market saw 975 homes successfully reach the closing table. This figure represents a sharp 24% drop compared to the number of homes closed in June. Even more notably, it marks a 25% decrease from the number of closings recorded in July of the previous year.

It’s important to note that closed data is, by nature, lagging data. It reflects deals that were likely initiated a month or two prior, making it a somewhat delayed indicator of market activity. Nevertheless, a pattern is emerging. Both month over month and year over year comparisons reveal a consistent downward trajectory in the number of closed homes.

Why is Charlotte experiencing this decline in closed transactions? The answer seems to lie largely in the supply side of the equation. Simply put, fewer homeowners are choosing to put their properties up for sale. This reluctance to list is constricting the supply of available homes, which in turn, is resulting in fewer closed deals.

5. Average Sales Price

In July, Charlotte’s housing market observed an interesting turn, the average sales price for a home in July was $534,500. This figure marks an 8% decline from June’s average sales price, but still reflects a solid 6% increase compared to July of the previous year. Notably, July was the first month this year that Charlotte witnessed a decrease in the average sales price.

Just like how we have seasons in the year, the housing market also goes through its own ups and downs. During the later part of summer, house prices usually stop rising so quickly or might even drop a little.

This isn’t something to worry about, it’s just how the market works. As we move further into the year, it will be interesting to see how Charlotte’s housing market changes, especially when compared to the bigger picture of what’s happening everywhere else.

6. Market Overview:

Imagine the housing market as a boat on the ocean. Lately, rising interest rates are like strong winds, pushing and challenging the boat’s direction. If these winds (or rates) keep getting stronger, they might make it tougher for our boat to sail smoothly.

When we step back and look at the past year in Charlotte, things have been going pretty well. The key question now is, how will these increasing rates shape the housing market’s journey in the upcoming months?

The Moves by the Federal Reserve:

Keep a close eye on Jerome Powell and the team there. The decisions they make can stir the waters even more. In their July meeting, Powell hinted at the possibility of interest rates increasing again. He left the door open to further rate hikes when they reconvene in September.

Now, even with the looming prospect of higher rates, Charlotte’s housing market remains robust. Why? We’re seeing a shortage of houses on sale. Think of it like everyone rushing to grab the last few popular toys on the shelf!

However, there’s a catch. If the Federal Reserve does decide to crank up these rates, we might find fewer homeowners wanting to sell their property. After all, why jump ship when it might mean dealing with a pricier loan on the next house? The next few months promise to be a revealing period for Charlotte’s housing market, as it reacts to these broader financial currents.

 

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7. What Does This Mean For Home Sellers

Considering a move? Here’s what you need to know:

  • If you decide to sell now, chances are good you’ll get a competitive price for your property. The current inventory in Charlotte is low, and many homes have recently sold above their asking price due to multiple offers.
  • On the flip side, if you’re also planning to buy another home, anticipate potentially higher monthly mortgage payments due to rising rates.

 

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. 

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

Is now a good time to purchase a home? Here are some insights:

  • Not every prospective buyer should jump into the market at this moment. Housing options are limited due to low inventory. Moreover, the homes that are available face high demand, which might stretch your budget.
  • If you’re feeling uneasy about high monthly mortgage payments, it might be worth waiting. Some suggest buying now and refinancing later if interest rates drop. However, it’s unpredictable when or if that will happen. Base your decision on current conditions, not potential future scenarios.
  • While some industry watchers think rates might lower slightly by the latter half of 2024, there’s no guarantee they’ll drop below 5% anytime soon. If they do decrease, expect a surge in buyer demand due to the many who have been waiting on the sidelines. This could potentially drive prices up further.
  • Despite the challenges, if buying aligns with your personal and financial situation, then it’s a move worth considering. Always prioritize what’s best for you and your family, without banking on uncertain future rate changes.
  • Given the resilience of our current housing market, a massive drop in home prices isn’t likely. Instead, we might see a steady growth in home values over the next few years.

In a nutshell, Charlotte’s housing scene is vibrant and ever-changing. While broader market trends provide guidance, the best choices always align with individual needs and circumstances.

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Charlotte North Carolina Housing Market Update June 2023

Charlotte North Carolina Housing Market Update June 2023

by | Jun 14, 2023 | Charlotte NC Housing Market Update

Americans overall are feeling worse about the housing market! Unless, of course, you’re trying to sell your home! With mortgage rates recently ticking up, home buyers affordability is really being strained. But, because of the record low levels of housing inventory, home sellers are still sitting pretty.

So, what’s really going on in our local Charlotte, North Carolina housing market? What are the latest trends? What can we expect moving forward? You’ve came to the right place and thats exactly what we’ll discuss today!

 So strap in, folks, this is your all access pass to everything you need to know about the sstate 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:  June 2023

 

1. Number of New Listings

2. Number of Pending Listings

3. Number of Closed Homes

4. Average Sales Price

5. Market Overview 

6. My Thoughts

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1. Number of New Listings

In May, 1300 new listings hit the market, which was an 4% increase from the number of new listings in April 2023. We saw a gradual increase in the amount of new listings coming to the market month over month. We saw a 26% 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, North Carolina 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.

We also have a 11% decrease in the amount of homes on the market at any given time compared to last year. The supply of available homes are one of the biggest factors affecting our housing market! 

Even though there are less homes available, the median days on the market for a home is 33.6 days, which is a 67% increase from the median days on market for a home this time last year! 

Charlotte North Carolina Housing Market

It’s interesting, we’re seeing a reduced level of available homes, but homes are sitting on the market for longer. This shows us that the higher mortgage rates are taking its tole on the home buyers. Even though home buyers are feeling the squeeze of higher mortgage rates, low levels of supply are helping home sellers maintain their negotiating power. 

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2. Number of Pending Sales

In May, 1243 homes in Charlotte NC accepted an offer. This was a 2% decrease from April 2023 and a 15% decrease from the amount of homes that accepted an offer in May 2022.  

Fewer homes listed = Fewer homes accepting offer’s.

The number of pending sales have been steadily decreasing since March 2023. One factor that could be affecting this is the average mortgage rates ticking up in recent months. In May, mortgage rates ticked up by around .5%. Many buyers were locking in mortgage rates around the mid 7.5%. 

The number of new listings outpaced the number of pending sales by 5%. With the acceptation of March, listings have continued to outpace pending sales for this entire year! This means the number of available homes at any given time has steadily increased since January 2023. 

 

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.

3. Number of Closed Homes

In May, 1202 homes closed in Charlotte, which was a 8% increase from April 2023 and a 22% 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. 

4. Average Sales Price.

In May 2023, the average sales price was $569,000. This was a 9% increase from April 2023. This was a huge increase in just one month. The local Charlotte, North  Carolina home owners should love this. You gained a good bit of equity over the last 30 days! We’ve seen the average sales price appreciate by 10% since May 2023.  

June 2022 proved to be the peak of the housing market at $528,500. So, unless we see any major changes, we shouldn’t see home price depreciation this year! In fact, quite the opposite, we should see a healthy increase in the price of homes this year! 

The average price in the United States has dropped by about 2% year over year, so we’re outpacing the United States by around 12%. This is especially true when you look at markets like Austin, TX and San Francisco, California!

Average home sale price in the United States

5. Market Overview:

So, inventory is increasing, but prices are increasing as well, what’s going on? Inventory is increasing but not nearly to the levels to match buyer demand. The low levels of inventory are really propelling our market. It all boils down to supply vs demand. There are many factors affecting our housing market shortage, like: 

 

  1. “Institutional investors: Over the past few years, institutional investors have purchased about 30% of all of the homes that have sold in the Charlotte area. They usually do not sell as often as a regular homeowner would, so this ties up a large portion of the inventory. 
  2. Lack of new construction over the last decade: New home builders have never caught back up from the great recession. Over the past decade, home builders have been very cautious and haven’t built enough homes to keep up with supply. 
  3. “Would be” home sellers not moving: Many “would be” home sellers are discouraged from moving because they locked in a 30 year fixed rate mortgage between 2.5% and 3%. When they are looking to move, their getting quoted rates 7%+ which is discouraging them from making a move. 

 

Yes, the average days on market are ticking up but many homes are still selling quickly.  The nice homes that are located in the desirable areas are still getting multiple offers.  Many times theres a competitive bidding war for these homes. Just last week, we sold one of our listings for $25,000 above asking! The average number of offers received per sold property in the U.S. in April 2023 was 3.1. 

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6. My Thoughts: 

So, what do I think? Well, inventory is very low and buyers are beginning to get accustomed elevated mortgage rates. I feel we may see some small fluctuating in the market depending on rates, unemployment, etc. But, with the low levels of inventory and the growth we’re seeing in the Charlotte area, I believe that the worst of the housing market is behind us.  

Now, 2021 and 2022 were “Unicorn Years.” Euphoria fueled the housing market. I feel we’re also past that crazy and excitement and were getting back to something resembling the market prior to COVID.  

Once the Federal Reserve reduces rates, we will see a bump in housing prices. When this happens, many buyers on the sidelines will jump in. This could create a small frenzy to take advantage of the lower rates. When this happens, we could also see some inventory come onto the market, from the homeowners who have been putting off their move recently due to the higher rates. Experts predict the Federal Reserve will not reduce rates until we’re well into 2024. 

 

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 haven’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 will find 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!

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[Is The Worst Behind Us?] Charlotte North Carolina Housing Market Update March 2023

[Is The Worst Behind Us?] Charlotte North Carolina Housing Market Update March 2023

by | Apr 11, 2023 | Charlotte NC Housing Market Update, Uncategorized

The Charlotte North Carolina Housing Market saw surge in activity. What does this mean for the rest of the year? Mortgage rates decreased in March. How will this affect our local Charlotte North Carolina housing market? Join Josh Finigan as he reviews the most up to date information on the Charlotte North Carolina housing market.

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 are 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 North Carolina housing market saw some interesting trends in March 2023. According to recent data, home prices increased by 10% and the number of new listings hitting the market increased by 50% compared to the previous month. This surge in activity is indicative of a market that is heating up, which is not surprising given the season and the decline in mortgage rates.

Historically, the housing market tends to pick up in the spring and summer months, as families look to move before the start of the new school year. This is why we often see a spike in home sales and prices during this time. The increase in new inventory also suggests that sellers are feeling confident about the market and are putting their homes up for sale.

Another factor contributing to the current state of the housing market in Charlotte is the decline in mortgage rates. Lower rates mean lower monthly payments, which can make buying a home more affordable for many people. This can lead to increased demand for homes, which can drive up prices even further.

It is important to note that while the current trends may be encouraging for sellers, buyers may be faced with more competition for the most desired homes. However, buyers will also benefit from the amount of new inventory coming onto the market. Buyers will also benefit from the declining mortgage rate, helping increase buyers affordability and purchasing power.

Overall, the housing market in Charlotte North Carolina is showing signs of heating up, with increased activity and rising prices. While this may present unique challenges and opportunities for sellers and buyers, there’s still a lot of great opportunities for those of you looking to buy, sell, or invest in real estate. As always, it is important to stay up to date on the latest trends and market conditions in order to make informed decisions when buying or selling a home.

 

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 saw that rates declined throughout the month of March. The declining mortgage rates coupled with seasonal trends lead to this marketing heating up! In March, the mortgage rate fell by around .5%. Which means home buyers gained 5% in purchasing power throughout the month of March.  

 

 

Charlotte North Carolina Housing Market. Mortgage rates in March 2023

When you combine declining mortgage rates and a strong seasonal push, you can better understand the surge in activity in our local housing market. But, why did we see mortgage rates fall?

The recent collapse of banks like Silicon Valley Bank and Signature Bank has had a significant impact on the mortgage industry, leading to a fall in mortgage rates. Banks are a major source of funding for mortgage loans, and when banks fail, it can disrupt the flow of capital into the market.

As banks struggle, investors seek out safer assets, such as bonds, which can lead to a drop in mortgage rates. This is because mortgage rates are tied to the rates on 10 year Treasury notes, which are themselves influenced by the demand for bonds.

The collapse of these banks has also led to increased scrutiny of the financial industry, with regulators looking closely at how banks are managing risk and ensuring the stability of the market. This increased oversight can lead to tighter lending standards and more conservative underwriting practices, which can in turn lead to lower mortgage rates.

Overall, the collapse of banks like Silicon Valley Bank and Signature Bank has had a significant impact on the mortgage industry, leading to a fall in mortgage rates. While this may present challenges for banks and investors, it represents a great opportunity for home buyers and home sellers out there.

Bank failures and mortgage rates

The Federal Reserve

The Federal Reserve met again on March 21 & 22nd. At this meeting they raised the federal funds rate by 25 basis points, taking the FED prime rate to a targeted range of 4.75% and 5%. This takes the federal funds rate to the highest levels since May 2006. They decided to continue to raise rates, in spite of the recent banking crisis. This shows us how seriously Jerome Powell is taking the inflation crisis. Jerome Powell note’s that inflation is slowing down, which is a good sign. He feels more work needs to be done, so the fight against inflation continues. We may just see a less aggressive fight than before. 

Jerome Powell goes on to say “Inflation remains too high and the labor market continues to be very tight.” He says, “Reducing inflation is likely to require a period of below trends growth and some softening in the labor market.” This means we may not see rate cuts in 2023.

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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If we look at the Federal Reserve Dot Plot, it shows the Fed’s prime rate peaking at 5.1%. This means we may only have one rate hike left.   

Currently, no officials are predicting rate cuts this year, although they do see rates coming down to 4.3% in 2024. 

 

Fed Dot Plots Mortgage Rate and hosuing market

What does this mean for mortgage rates?  

We may have seen the highest mortgage rates behind us, however they are unlikely to return to the rock bottom levels we saw in 2020 and 2021. 

We can expect mortgage rates to remain volatile. They will probably yo-yo a bit, at least until there is a firm consensus on when the fed will conclude raising rates. See below for the most recent predictions for mortgage rates to the end of 2023:

 

Mortgage rates through the end of 2023

3. Number of New Listings

In March, 1,530 new listings hit the market, which was an 50% increase from the number of new listings in February 2023. We can expect to see more people list their homes as we move further into Spring due to seasonal trends of the market. This is a strong sign though, buyers will welcome this increased inventory on the market. However, we saw a 6% decrease in the amount of new listings year over year. This shows us that we’re still below trend for the amount of new listings coming onto the market. However, we are getting closer to year over year norms. The number of new listings coming to the market have continuously decreased throughout 2022 and into 2023 and this surge in new inventory shows us that homeowners are now feeling more comfortable putting their home on the market. 

 

 

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4. Number of Pending Sales

In March, 1,371 homes in Charlotte NC accepted an offer. This was a 19% increase from February 2023 and a 4% decrease from the amount of homes that accepted an offer in March 2022.  

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 February 2023 to March 2023. One strong reason for this could be the mortgage rates. As we stated before, the mortgage rates fell by around .5% through the month of March, this means that buyers have 5% more in purchasing power. Buyers affordability had a boost, so we saw a boost in the number of pending sales in March 2022. That coupled with strong seasonal trends, lead to a very active month in the Charlotte North Carolina housing market. 

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.

March  2023 New Listings: 1,530 

March 2023 Pending Sales: 1,371

This was the first month in the past 4 months that the number of new listings outpaced the number of pending sales. This indicates that the amount of inventory on the market increased by 12% in March. March was very strong for buyers and sellers alike.  

 

1. Home Sellers: Home sellers saw a huge increase in the average sales price and buyer demand.  

2. Home Buyers: Home buyers saw a surge in new inventory, giving them more options to choose from. Home buyers also enjoyed falling mortgage rates, making the homes more affordable. 

 

5. Number of Closed Homes

In March 1,182 homes closed in Charlotte, which was a 37%  increase from February 2023 and a 3% increase from March 2022. 

We have seen the number of closed homes continuously decline throughout 2022. However, we were slightly higher than the year over year trends. Which could be due to a strong 2023 selling season this year. Inventory remains lower, so it will be interesting if this continues. 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

March proved to be a very strong month for home sellers here in Charlotte, North Carolina. In March 2023, the average sales price was $513,000. This was a 10% increase from February 2023 and a 6% increase from the average sales price in March 2022. With March’s data, Charlotte home prices are only 3% off the peak of the market (in June 2022). We’ve seen a 13% increase in home prices since January 2023.

The Charlotte North Carolina average sales price is continuing to chart with the mortgage rates. We’ve seen lower rates, which has spurred more activity in the market and helped home prices appreciate. 

For home sellers

With strong seasonal trends and declining mortgage rates, the market has somewhat revitalized in the recent months. We have likely seen the peak of the mortgage rates, and with this a resurgence in homebuyer demand. Many homeowners have started to take advantage of the lower interest rates and started making a move, which has increased the total inventory on the market. However, this has not affected the demand for homes.  

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

Competiton for the best homes are increasing. However, the lower mortgage rates will help with overall affordability.  Also, more and more homeowners are deciding to put their homes on the market, which will allow more options for you to choose from. 

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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