Every quarter I share my “market update” which usually consists of what the team and I have experienced in recent months along with my thoughts on what we anticipate seeing moving forward. But spring always feels like a good time to dive a little deeper into Charlotte’s real estate market.
Our local Realtor Association just finished presenting its 2023 Housing Outlook. It is always nice to see what we are experiencing backed up by the data. So let’s dive in…
Supply and Demand
Charlotte’s biggest issue continues to be the supply not meeting the demand. Charlotte has been growing since the 2009/2010 recession and as the economy grew stronger Charlotte found itself adding more households than housing.
Charlotte started to catch up to its own growth in 2018/2019 (we also felt a stabilization in pricing then). However, then pandemic the hit, and Charlotte became one of the most sought-after cities to move to for the quality of life and what many thought was affordable real estate.
Dr. Yongqiang Chu, UNC Charlotte Childress Klein Center for Real Estate Distinguished Professor, shares that, from January 2020 – September 2022, Charlotte’s median home price increased 54%. Then, from June 2022 – December 2022, it decreased -6.6%, which Dr. Chu felt was a normal seasonal slowdown as the market activity typically cools towards year-end.
Sold Above Listing Price
In the last two years, roughly 50% of the homes sold have sold for over asking. Dr. Chu argues that, when you look at the growth rate vs. the housing price of Charlotte compared to regional competitors and national competitors, it is very unlikely housing prices will decrease. To slow the price increases we would have to slow the city’s growth and create affordable housing, but, as of now, we are about 30,000 – 40,000 homes short of those needs.
Median House Price (Regional Competitors)
Median House Price (National Competitors)
The data above gives no indication that this trend will subside. There was an initial pause in the market when the pandemic started then, once things got moving again, it created a frenzy within the market that lasted almost two years (from September 2020 – June 2022). The fall of 2022 and the first quarter of this year have felt a little more like “the norm”. Spring has arrived and so has Charlotte’s busy spring housing market where we historically see peak activity, pricing, and sales. So, we again find ourselves in multiple offers, bidding wars, appraisal waivers, high due diligence fees, etc. And no, the interest rates haven’t slowed anything down in Charlotte as of yet!
Have any Charlotte market questions? Reach out! My team and I are always happy to help.