There seems to be a “fear factor” holding the market back and experts are divided on whether or not the economy is headed into a recession. With lower interest rates, solid demand and increasing inventory there should be a gain in sales, yet 2019 sales are flat compared to 2018 due to supply and affordability.
Even interest rates at an eight-year low have not yet pulled buyers back into the market. In discussions with mortgage brokers, a majority of their business is refinancing, not new purchases. The uncertainty of the economy and trade relations is undoubtedly holding back demand and the need for affordable home availability continues. If interest rates remain low, which is expected, then we can anticipate an acceleration in home-price gains.
Home prices are also pushed upward by continued tight housing inventory. An increase in home building could assist in improving economic growth because without more supply the industry cannot grow. However, there were fewer new homes built this year than last.
Charlotte still ranks as one of the fastest-growing cities in the country. Fortune 500 companies continue to move here, job growth is great, and the real estate market is growing. If you have questions about your specific neighborhood and its localized market, don’t hesitate to contact us.