Due to lack of inventory, Charlotte’s spring market is proving to be one of the most challenging markets I have ever experienced, and I was selling real estate in the housing crash of 2008! In one recent article I read, the writer used the word “unhinged from fundamentals” to describe today’s home prices, but that buyers are continuing to pay the “exuberant” prices because they’re afraid if they wait, the pricing will just go higher. Today’s market is literally being owed to FOMO (aka “fear of missing out”)!!
In speaking with another peer in the industry earlier this week, it was stated that “all rules are broken” when trying to price a listing. We are seeing most offers come in tens of thousands over asking, and in some cases, hundreds of thousands over asking. We have seen six-figure due diligence fees being offered; buyers are waiving inspections and appraisals. Appraisals are coming low across the board, but buyers are moving forward regardless. Buyers are purchasing with cash or putting fifty percent down. Interest rates on the rise, along with pricing still rising, are causing buyers to be priced out of hoods that were affordable just months ago.
Talk of a bubble, talk of the market being overvalued, and yet, the talk isn’t slowing down the market in most places, and definitely not here in Charlotte. When you have an influx of buyers moving from the Northeast and West Coast, who see our real estate as affordable, all comps are thrown out the window. They are comparing our market to the markets they left, which in most cases are much pricier. We are fortunate to be in Charlotte for many of these reasons, but I also fully believe we need the market to be steady in order to remain healthy. Interest rates don’t seem to be doing that as of yet. As I have shared in other market updates, our current market is not inflated by false and subprime lending and the homeowners are financially healthy, so a crash is unlikely. A stabilization would give us a little relief.
Here is a glance at year-over-year, and how tight the market has gotten:
Last year, my team and I sold 70 houses. This year, we could certainly sell that many, if not more, but we can’t find them. We will probably fall about 20 short this year. If you are thinking about selling, you know where to find us!
Charlotte Skyline Photo by The 5 and 2 Project.