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Is Charlotte The Best Market For Real Estate Investment?

How is The Charlotte Real Estate Market in 2019?

If you’re keen to invest in the Charlotte real estate market in 2019, you must read till the end. When someone considers investing in real estate, attention tends to drift to the hot markets like San Francisco or the places those residents are fleeing to due to the high cost of real estate.

In other cases, investors focus on the “cool” places people want to be and assume that will yield a good return on the investment. We’ve taken the time to look for the better long term opportunities, and that brought us to the Charlotte real estate market. Charlotte is the largest city in North Carolina. The city proper is home to more than 800,000 people.

The Charlotte metropolitan area is even larger – home to roughly two and a half million people. It is one of the country’s fastest growing metro areas, and it was the second fastest growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014.

The Charlotte housing market is a hot market for investors whether they want to renovate and flip, buy to hold and rent or invest in multi-family properties. Is Charlotte still one of the hottest markets for real estate investment in 2019? Let’s take a deep look at the latest Charlotte housing market trends to come to a conclusion.

Charlotte Real Estate Market

Original Photo via Pixabay

Charlotte Real Estate Market Forecasts 2019 & 2020

Zillow, in a new report, named Charlotte the fourth-hottest U.S. housing market in 2018 as prices and rent keep going up. Charlotte was ranked in the top 10 in another forecast for 2018, coming in at No. 7 in a Realtor.com prediction.

Like many fast-growing cities, the housing market in Charlotte has been defined by tight inventory, rising prices and climbing rent. As per Zillow.com’s data, the median home value in Charlotte is $229,100. Charlotte home values have gone up 6.8% over the past year and their Charlotte real estate market prediction is that the prices will rise 3.2% within the next year.

The median list price per square foot in Charlotte is $150, which is higher than the Charlotte-Concord-Gastonia Metro average of $134. The median price of homes currently listed in Charlotte is $292,000 while the median price of homes that sold is $230,500.

The median rent price in Charlotte is $1,525, which is higher than the Charlotte-Concord-Gastonia Metro median of $1,505. Here is the Charlotte, NC real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.2% till Aug 2020.

Charlotte Real Estate Market Forecast

Graph Credits: Zillow.com

Charlotte Housing Market Forecast 2019 – 2021

The Charlotte housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Charlotte is 88%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Charlotte, NC is 88% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Charlotte, North Carolina Real Estate Market Forecast..

Charlotte Real Estate Market Trends

Charlotte real estate market trends indicate an increase of $15,000 (7%) in median home sales and and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $147, up from $136.

At present, Trulia has 3,468 resale and new homes for sale in Charlotte, NC, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price of homes in Charlotte is $263,000. Homes are selling for about $159/sqft.

Charlotte Real Estate Market Trends

Graph Credits: Trulia.com

As per the housing stats released by the Charlotte Regional Realtor Association, a total of 4,735 homes were sold in Charlotte in August 2019, which is down (-2.9%) from 4,876 a year ago.

The year to date (August 2019) sales recorded were 33,942, which is up (+1.6%) from 33,405 a year ago. The total inventory of homes for sale in Charlotte (Aug 2019) was 9,142, which gives about 2.3 Months Supply of Inventory.

Charlotte Real Estate Market Data

   Credits: Charlotte Regional Realtor® Association

Charlotte Housing Market Statistics

As per Redfin.com’s data, the Charlotte housing market is somewhat competitive. Homes for sale in Charlotte have a median listing price of $305,000. Homes in Charlotte receive 1 offers on average and sell in around 46 days. The average sale price of a home in Charlotte was $254K last month, up 5.0% since last year. The average sale price per square foot in Charlotte is $137, up 7.0% since last year.

In the past month, 3714 homes have been sold in Charlotte. The median price per square foot in Charlotte has increased by 7.0% over the past year. Homes typically receive 1 offer. Homes in the Charlotte housing market sell for about 1% below list price and go pending in around 46 days. Hot homes in Charlotte, NC can sell for around list price and go pending in around 27 days.

There are 5,038 homes for sale in Charlotte, NC on Realtor.com. 418 of which were newly listed within the last week. Additionally, there are 1,719 Charlotte rentals for sale, up to $7.4K per month. In August 2019 the Charlotte housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

Charlotte Housing Market Trends

Sale-to-List Price Ratio: 98.86% | Realtor.com

According to Realtor.com, the median list price of homes in Charlotte, NC was $293.4K in August 2019, trending down -12.4% year-over-year. The median listing price per square foot was $148. The median sale price was $257.8K. Homes in Charlotte, NC sold for 1.14% below asking price on average in August 2019. On average, homes in Charlotte, NC sell after 54 days on the market. The trend for median days on market in Charlotte, NC is flat since last month, and slightly down since last year.

Charlotte Housing Market Trend

Graph Credits: Realtor.com

On Movoto.com, the median list price in Charlotte is $365,480. The median list price in Charlotte went up 1% from August to September. Charlotte’s home resale inventories is 2,490, which decreased 2 percent since August 2019. The median list price per square foot in Charlotte is $174. August 2019 was $171. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in September.

Charlotte Home Prices Trends

Graph Credits: Movoto.com

Charlotte Single Family And Multi-Family Homes

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Charlotte, NC is $225,723, which indicates that home prices in Charlotte are well above the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Charlotte, accounting for 56.21% of the city’s housing units.

Three and four bedroom single-family detached homes are the most common housing units in Charlotte. The city has a mixture of owners and renters, with 53.09% owning and 46.91% renting. Other types of housing that are prevalent in Charlotte include large apartment complexes, row houses, few duplexes and homes converted to apartments.

Currently, there are 2,231 single family homes for sale in Charlotte, NC on Zillow. Additionally, there are 1,192 single family homes for rent in Charlotte, NCUnder potential listings, there are about 15 Foreclosed and 259 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Charlotte, NC Foreclosures And Bank Owned Homes 2019

As per the Charlotte foreclosure data by Zillow, in Charlotte, 0.5 homes are foreclosed (per 10,000). This is lower than the Charlotte-Concord-Gastonia Metro value of 0.7 and also lower than the national value of 1.2. The percent of delinquent mortgages in Charlotte is 1.2%, which is higher than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Charlotte homeowners underwater on their mortgage is 6.3%, which is higher than Charlotte-Concord-Gastonia Metro at 6.0%

Charlotte is the largest city in North Carolina. The city proper is home to more than 800,000 people. The metropolitan area is even larger – home to roughly two and a half million people.

It is one of the country’s fastest growing metro areas, and it was the second fastest growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014.

Foreclosures in Charlotte 906
Homes for Sale in Charlotte 2,803 (RealtyTrac)
Recently Sold 11,856
Median List Price $272,750 (3% ⇓ vs Jul 2018)

There are currently 906 properties in Charlotte, NC that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,803. In August 2019, the number of properties that received a foreclosure filing in Charlotte, NC was 9% lower than the previous month and 51% lower than the same time last year.

Best Neighborhoods to Invest in Charlotte Rental Real Estate

If you are looking to invest in the Charlotte rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Charlotte rental real estate and you should be able flip it for a lump sum profit.

When looking to invest in Charlotte real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Charlotte investment property should be low. The neighborhoods in Charlotte must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 126 elementary schools, 61 middle schools, 46 high schools and 59 private & charter schools in Charlotte.

There are 161 neighborhoods in Charlotte. Some of the best neighborhoods in or around Charlotte, North Carolina are Ballantyne West, Highland Creek, Provincetowne, Myers Park, Beverly Woods, Cherry, Eastover, Barclay Downs, Elizabeth, Dilworth, Foxcroft, NoDa, Madison Park, Cotswold, Greenville, Sedgefield, South End, and Belmont.

Myers Park has a median listing price of $1.1M, making it the most expensive neighborhood. Newell is the most affordable neighborhood in Charlotte, with a median listing price of $215.5K.

Appreciation rates for homes in Charlotte have been tracking above average for the last ten years, according to NeighborhoodScout data. The cumulative appreciation rate over the ten years has been 21.28%, which ranks in the top 30% nationwide.

Here are the best neighborhoods to invest in Charlotte rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 E 3rd St / S Mcdowell St

2

 S Kings Dr / S Independence Blvd

3

 East Blvd / South Blvd

4

 South Blvd / Hartford Ave

5

 Central Ave / Hawthorne Ln

6

 Eastway Dr / Arnold Dr

7

 Hawthorne Ln / Belvedere Ave

8

 Central Ave / Saint Julian St

9

 New Life Theological Seminary / N Davidson St

10

 Grace St / Parson St

Is Charlotte a Good Place to Invest in Real Estate?

Charlotte Real Estate Market

Now that you know where Charlotte is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Charlotte rental real estate?

Many real estate investors have asked themselves if buying a rental property in Charlotte is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Charlotte housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Charlotte but we have collected ten evidence based positive things for those who are keen to invest in the Charlotte rentals in 2019.

Investing in Charlotte rentals will fetch you good returns in the long term as the home prices in Charlotte have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Charlotte real estate market which can help investors who are keen to buy an investment property in this city.

1. The Job Market

Why do people move to an area? They may relocate because they want to retire there or they think it is safer. However, the general reason people move to – or away from – an area is economic opportunity. North Carolina’s unemployment rate dipped below 4% in August, 2018.

The area’s historically strong economy explains why roughly 100 people a day move into the area. And that propels demand for the Charlotte real estate market.

2. Its Affordability for Investors

The median home/condo in Charlotte was worth $200,000 in 2016. Home prices here are somewhat more expensive than the rest of North Carolina but affordable when you look at national prices. Detached homes cost around $300,000, townhomes around $200,000.

You can buy duplexes roughly $400,000. Three and four unit structures cost around $120,000 apiece. This makes the Charlotte real estate market a particularly good value for real estate investors.

3. Demographic Momentum

Charlotte has a median age of 34, several years younger than the national average. That is because many people are moving here for work. This means the Charlotte real estate market is going to see demand from both people moving here for work and young adults who stay and raise families here; young adults who come here for school and work will eventually move up in the Charlotte housing market, whether in the city or in the suburbs.

The fact that the city is a top destination for Millennials guarantees long-term growth for the Charlotte real estate market.

4. Quality of Life

Charlotte, North Carolina ranks rather high in the U.S. News rankings of the best places to live. They were ranked 22nd in both on the list of best places to live and best places to retire.

Other places ranked higher on desirability, sometimes due to a “coolness” factor that brings people to Austin, Texas. Charlotte’s good score was due to the availability of jobs, overall value, amenities and safety of the community.

That will attract people who may not be moving specifically for work and lead many who were raised here to stay. This suggests the Charlotte real estate market is going to remain strong even if the local economy isn’t so hot in the future.

The huge demand for homes in Charlotte provides uncommon stability in its housing market. There are also intangibles such as quality of life and strong southern comfort than can’t be measured by metrics. Residing in the south usually equates to easy living, but few southern cities offer Charlotte’s stable housing market.

5. The Mobile Home Market

We’re not going to spend time gushing about the upper end of the Charlotte housing market. Instead, we’re going to address a market that is generally overlooked, the affordable options in the Charlotte real estate market. Per-capita income in Charlotte is around $35,000 a year.

This prices many out of the housing market, since median gross rent was roughly $1000 a month in 2016. The solution for many is staying in a mobile home. Mobile homes cost around $40,000 a year, still out of reach for many would-be renters.

The relatively mild climate of the Carolinas eliminates the problem of keeping mobile homes warm in the winter, as well. The Carolinas contain large number of mobile homes, so they’re considered an acceptable alternative for many renters.

Nearly 20% of homes in South Carolina are mobile homes, and 17% of homes in North Carolina are. Yet there are relatively few people building mobile home parks, though they’re still regularly installed on private rural land.

Given the incredibly high ROI of mobile home parks due to their low maintenance requirements, we couldn’t neglect this unique aspect of the Charlotte real estate market.

6. Charlotte’s Landlord Friendliness

North Carolina is considered landlord friendly. The state doesn’t have notice of entry laws. A written agreement is recommended by not mandated for leases that last less than a year. There’s a five day grace period before you can assess late fees on rent.

You don’t have to have a rental license to be a landlord. The state doesn’t have rent control or rent regulation. If they don’t pay the rent, you can begin eviction on the 11th day. If they violate the lease, especially for criminal offenses, there’s no need to give notice and the eviction process is expedited.

A new law makes Charlotte even more landlord friendly. A law that passed in the summer of 2018 allows landlords to recover attorney’s fees and court costs from tenants when the eviction goes to court.

Therefore, one of the reasons we recommend the Charlotte housing market is the fact that you won’t own a property where the tenants aren’t paying rent for months while you rack up insane legal bills.

7. Low Property Taxes in Charlotte

South Carolina has the sixth lowest property taxes in the U.S. North Carolina did worse at 22nd out of the 50 states, but that’s certainly better than neighboring Georgia; that state was literally average at 25th place.

You would pay a little more than locals if you’re an out of state land owner. Factor in its cheaper than average real estate, though, and you’ll pay an average of $1300 a year in property taxes on a South Carolina property.

Compare that to the median $2700 bill in Texas, $3300 you’d pay in Wisconsin, $4000 you’d be billed in Illinois and the whopping $7600 bill for a home in New Jersey.

8. Charlotte’s Overall Balmy Tax Climate

Property taxes are but one aspect of a state’s tax code. South Carolina has relatively low overall taxes. If you’re buying property as a corporation, their top corporate income tax rate is 5%.

However, if the corporation counts as a pass-through business, you may be able to get the income taxed at the flat rate of 3% instead.

The top individual income tax rate is 7%. This is better than the national average. In fact, South Carolina’s per capita tax rate is one of the lowest in the country according to the Census Bureau.

9. The Diverse, Sizable Student Market

Being the largest city in the state guarantees there’s a sizable university in town. Charlotte boasts several of them. The University of North Carolina has a campus here, of course. Queens University of Charlotte, Davidson College, Johnson C. Smith University and two dozen others are located in and around Charlotte, North Carolina.

You could buy up apartment buildings in and around massive campuses or literally next door to smaller schools like Johnson and Wales University.

10. The Redevelopment in Charlotte Downtown

Investing in Charlotte Real Estate

Charlotte is seeing a wave of redevelopment of downtown. Properties along transit corridors are eligible for grants and special privileges. The city has targeted specific corridors for redevelopment like Rozzelles Ferry Road and Beatties Ford Road.

North Charlotte, too, is slated for redevelopment. If you buy up properties in the vicinity and renovate them, you could either rent them out at higher rates in the future or sell them at a sizable profit.

The interesting opportunity lies in the car-free city center that could result in rundown buildings becoming upscale properties. That project is called the North Tryon Vision Plan, and it covers a sixty acre, 50 city block area.

Charlotte Real Estate Investment

Maybe you have done a bit of real estate investing in Charlotte, North Carolina but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Charlotte real estate investment opportunity would be a key to your success. in If you invest wisely in Charlotte rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Charlotte rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Charlotte, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Charlotte, NC. One advantage to living in a big city like Charlotte is the constant demand for homes. Buying a home in Charlotte is a better investment, depending upon several factors.

There are so many major companies and professional sporting events that people will always be interested in residing here. Therefore, interested investors aren’t likely to allow the listing prices to get to low before they swoop in and take advantage.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Charlotte real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Similarly, the St. Louis real estate market is red hot! Homes are selling fast because inventory is low, creating a banner selling season for homeowners looking to move. If you’re looking for an amazing opportunity, the St. Louis real estate market can’t be beat.

There are many opportunities in the St. Louis real estate market to investors regardless of who you want to target for renting or selling a newly renovated home. St. Louis is old enough to have aging inner-ring suburbs.

You can find redevelopment opportunities in suburbs like University City, home to Washington University in St. Louis. About 800 acres are slated for redevelopment in University City. Wellston is receiving funds from HUD specifically for redevelopment.

Another housing market in Texas to go for diversifying your investments is the Austin real estate market. The Austin housing market may be one of the more expensive ones in the state of Texas, but it stands out for its large rental market and high rental rates. It is an excellent place to invest in real estate in the Lone Star State.

Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $350,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Demographics
https://en.wikipedia.org/wiki/Charlotte,_North_Carolina
http://www.city-data.com/city/Charlotte-North-Carolina.html

Mobile homes
http://www.statemaster.com/graph/hou_per_of_hou_uni_tha_are_mob_hom-housing-percent-units-mobile-homes
https://www.reonomy.com/blog/post/how-to-invest-in-mobile-home-parks

Quality of life
https://realestate.usnews.com/places/north-carolina/charlotte

Landlord friendliness                                                                                      https://www.avail.co/education/laws/north-carolina-landlord-tenant-law                        https://portcitydaily.com/local-news/2018/06/30/heres-how-north-carolinas-new-eviction-fee-law-changes-things-for-landlords-and-tenants

Property taxes
https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585/

tax climate
https://taxfoundation.org/state/south-carolina/
https://carolinaliving.com/financial-matters/south-carolina-taxes

University
https://www.collegesimply.com/colleges-near/north-carolina/charlotte/

Redevelopment
http://charlottenc.gov/ED/Development/Pages/Corridor.aspx
https://www.bizjournals.com/charlotte/news/2017/02/17/developments-planned-for-north-end-neighborhoods.html
https://nextcity.org/features/view/charlotte-moves-toward-a-car-free-city-center

Market Trends And Forecast                                                                                          https://www.zillow.com/Charlotte-nc/home-values                                    https://www.trulia.com/real_estate/Charlotte-North_Carolina https://www.realtytrac.com/statsandtrends/nc/mecklenburg-county/charlotte        https://www.movoto.com/charlotte-nc/market-trends            https://www.redfin.com/city/3105/NC/Charlotte/housing-market                      https://www.carolinahome.com/market-data/monthly-reports

Best Neighborhoods In Charlotte                                              https://www.neighborhoodscout.com/nc/charlotte/real-estate


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