A Charlotte Real Estate Market Update
This data, derived from Canopy MLS Data through May 4, 2023, and compared to the same time period in 2022.
Housing inventory remains tight
One of the biggest challenges facing Charlotte homebuyers is a lack of inventory. This spring phenomena is here for the year at least. Higher interest rates make the move up buyer less inclined. There simply aren’t enough homes for sale to meet demand, which has led to bidding wars and rapidly rising home prices since 2020.
Demand remains strong
Despite the high prices and higher interest rates, demand for homes in Charlotte remains strong. The better the home condition, and popular functionality, multiple offers and only strong offers prevail. This is due in part to the region’s growing economy, which has attracted new residents from across the country. Simple supply and demand-too many buyers seeking too few homes.
Interest rates remain low
One factor that is helping to drive demand for homes in Charlotte is the ongoing low interest rate environment. With mortgage rates still near historic lows, many buyers are eager to lock in a low rate and take advantage of the opportunity to own a home. The decrease in new listings is worth noting, particularly the sharp drop in Waxhaw, nearly 28%- double the Charlotte area drop of 14.7%. However, it’s worth pointing out that the Lake Norman area has only seen a small decrease in new listings, under 3%, suggesting that different areas within Charlotte may be experiencing varying levels of supply and demand.
Despite rising median and average sales prices, the cost per square foot has remained steady at $219 per square foot, virtually identical to the 220/sf a year ago. This suggests that the high prices are due in part to folks buying a bit larger homes rather than a true “price increase.”
Home prices in the Charlotte MSA are neither rising rapidly or declining, regardless of what you read elsewhere. However your neighborhood WILL vary, and the homes with the very best collection of features, inside and out, will determine the ultimate demand and sales price. That is why you need a professional to determine the likely sale price of your home, a strategy to achieve or surpass it- well before it goes on the market. Call us, if you haven’t made a Realtor choice.