Charlotte housing market: Everything you need to know

If you’re considering purchasing a home in North Carolina, Charlotte is likely on your radar. As the largest city in the Tar Heel State, Charlotte offers abundant professional opportunities, particularly in the banking industry, coupled with a relatively affordable cost of living. With its ranking among the top 10 fastest-growing cities in the U.S. according to the 2022 American Growth Project, the real estate market in Charlotte is thriving. In this guide, we’ll provide you with everything you need to know about buying and selling in the dynamic Charlotte housing market.

Charlotte Housing Market Overview:

The Charlotte region encompasses a vast geographical area, spanning 12 counties in North Carolina and 4 in South Carolina. Depending on your specific location within this region, the housing market dynamics may vary. For instance, in Mecklenburg County, home to Charlotte itself, the median sale price in May 2023 was $445,000. In Union County to the east, it was slightly higher at $465,000, while in Gaston County to the west, it was notably lower at $286,000.

Market Competitiveness:

The Charlotte housing market is known for its competitiveness. According to Redfin data, homes sold in May received an average of three offers, indicating that sellers hold a strong position. However, there has been a slight slowdown compared to the previous year.

Charlotte Housing Trends and Stats:

• Median home price in the Charlotte region as of May 2023: $385,000 (a 2% year-over-year decrease).
• This closely aligns with the nationwide median of $388,800 reported by the National Association of Realtors.
• New listings have declined by over 25% since May of the previous year, with closed sales dropping by 16.6%.
• Homes spent an average of 34 days on the market in May 2023, a significant increase from 14 days in May 2022.
• Homes typically sold for 98% of their list price, indicating they are selling just under the asking price, as opposed to the previous year when they were going for slightly over.

Closing Costs and Considerations:

In North Carolina, closing costs typically amount to 1.1% of the purchase price, according to Core Logic’s ClosingCorp. It’s important to factor this into your budget when buying or selling a home in Charlotte.

Is it a Buyer’s or Seller’s Market?

Determining whether Charlotte leans towards a buyer’s or seller’s market is nuanced. While inventory is notably low, signaling a seller’s market with only 1.3 months of supply, other factors such as lower prices and extended time on the market suggest some advantages for buyers.

Advice for Home Sellers:

• Given the short supply of homes for sale, sellers have an advantage, but they should be aware of high mortgage rates affecting potential buyers.
• Understanding your home’s value through comparable sales in your neighborhood is crucial.
• Consider closing costs, including state excise tax and real estate commissions.

Advice for Home Buyers:

• Buyers have some leverage, with homes staying on the market longer than in the previous year.
• Negotiating concessions for closing costs may be possible, as more than 50% of sellers in Charlotte have agreed to concessions in 2023.
• Getting preapproved for a mortgage is essential to determine your budget and streamline your search.

Charlotte Housing Market Predictions:

Experts anticipate a healthy housing market in Charlotte for the summer, particularly if mortgage rates stabilize. Long-term projections indicate a bright future for the city, with an estimated population of 4.5 million by 2050, further bolstering home values.

Conclusion:

In the dynamic Charlotte housing market, having the right real estate agent can make all the difference. With the expertise of a seasoned local Realtor, you can navigate this fast-paced market with confidence, ensuring a successful transaction in this exciting city.