Spring 2025 Market Update
As we move deeper into the busy spring season, what’s happening in Charlotte real estate? Despite some national trends of cooling markets, the Charlotte market continues to show resilience and growth. We consistently rank as one of the hottest housing markets in the U.S. and 2025 is no exception. These are the current trends we are seeing that are shaping the Queen City this season:
Strong Buyer Demand Continues
Buyer demand remains high in Charlotte. Many buyers who have wanted to make a move over the last couple of years are taking the leap now to capitalize on interest rates that have stabilized in the mid-6% range in recent months. New residents also continue to move to the Charlotte area in droves — about 117 people each day! — which adds to the housing demand. Coming from New York, California, Virginia, and more, newcomers are attracted to Charlotte’s expanding job market driven by finance, tech, and healthcare and our better cost of living.
Inventory Challenges Persist
While we welcomed a 11.1% increase in new listings (14,233) from January – March 2025, the overall supply of available homes remains undeniably tight. At the close of March, greater Charlotte had 2.6 months supply of homes for sale compared to 5 – 6 months in a balanced market. This lack of inventory, combined with strong buyer demand, means we are still regularly experiencing multiple offers and above list price deals for well-priced houses in sought-after neighborhoods.
Moderate Pricing Appreciation
Overall, prices in Charlotte have continued to appreciate, but at a more moderate pace than in previous years. The average sales price for the region was up 6.8% in March and up 5.6% year-to-date. While this is absolutely a solid rate of appreciation, it’s more sustainable than the massive double-digit growth we have seen over the last few years especially 2021 – 2023.
Slowed New Construction and Development
In response to the ongoing demand for housing, developers in Charlotte are pushing forward with new residential projects, most notably in the suburbs where larger areas of land are more readily available. In-town neighborhood development is seeing more multi-family projects such as townhomes versus single-family home developments. However, supply chain challenges and rising construction costs have impacted the pace of new builds. The build rate is slower than demand, which has kept the price point of new construction on the higher side.
Outlook for the Rest of 2025
Looking ahead to the remainder of the year, Charlotte's real estate market will continue to perform well and outpace most other markets in the U.S. The shortage of available listings will continue to be a big hurdle for the market and we all have a close eye on larger economic factors at play from inflation to interest rates.
For sellers, now remains a strong time to list as demand, especially in certain neighborhoods, shows no signs of slowing down. However, pricing strategy will be critical to avoid added days on market, which have been on the rise locally.
For buyers, act quickly in this competitive market, especially in high-demand neighborhoods. While some fluctuation is natural, interest rates are expected to remain relatively stable so you can make financial plans with more confidence.
Whether you are thinking of making a move or simply want to be informed about your current home and neighborhood, my team and I are here to help. Reach out anytime. We’d love to hear from you.
— Genevieve