Did you know that the Charlotte metro area is one of the fastest-growing cities in the United States? For instance, its population has increased by over 8% (an increase of 201,349 people) from 2016 to 2021.
As a result, the demand for Charlotte real estate has also increased. After all, a higher population means more people need homes.
So, what does that mean for those looking to buy, sell, or rent houses in Charlotte?
Below, we’ve compiled the latest trends and predictions you should know about, so read on.
1. Local House Prices May Increase
In November 2022, homes in the Charlotte metro had a median listing price of $401,427. That’s a considerable drop from the previous month’s median of $414,714. Historical data also shows how prices have gone down since June 2022.
This 2023, experts say prices of residential real estate in Charlotte may spike again. They forecast a 5.5% increase over the year.
So for those looking to buy Charlotte houses, now may be the time to do so before their prices increase again.
2. Charlotte Real Estate Market’s Low Inventory
The demand for Charlotte homes exceeds its number of available housing units. For example, it was 10,000 housing units short in 2020 and 2021.
Despite Charlotte’s low housing inventory, it’s still attracting many potential buyers. As a result, they try to outbid each other, resulting in higher sales prices.
So if you’re a current homeowner and have thought about selling, use this to your advantage.
First, check the average listing prices of homes comparable to yours within your area. You can hire a real estate appraiser if you want a more accurate value.
Next, consider listing your home for that price or even a little lower. This can attract several potential buyers who’ll make multiple offers. So even if your initial listing price was low, you could expect your final sales price to be much higher.
3. Strong Rental Demand
Rising home prices are forcing potential buyers to remain in the rental market. Another factor is the overall spike in homeownership costs, particularly mortgage rates. These have led to the demand for Charlotte homes for rent to increase, as well.
After all, many of these homes for rent have monthly rental fees lower than mortgage payments. So if you need a house but aren’t prepared to buy yet, consider renting until your finances are ready.
On the other hand, if you’re looking for an investment, consider owning a rental house in Charlotte. You can purchase one of the lower-cost homes in the area, renovate it, and then rent it out. With strong rental demand, you’ll likely have a long list of tenant applicants.
Keep These Charlotte Real Estate Trends in Mind
At this time, the Charlotte real estate market is still a seller’s market. So if you’re a buyer, consider holding off until it balances out, and while doing so, keep renting instead. However, if you’re a seller, take advantage of this time to secure a buyer and snag a much better offer.
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