The Charlotte housing market has experienced a significant surge in demand over the past few years, fueled by a booming economy, job growth, and a desirable quality of life. Queen City is one of the fastest-growing cities in the country, attracting young professionals and families alike with its diverse neighborhoods, excellent schools, and vibrant cultural scene. As a result, the real estate market in Charlotte has remained highly competitive, with limited inventory and rising home prices.
In this article, we'll explore the latest trends and data in the Charlotte housing market, including home prices, inventory, and sales activity. We'll also provide a forecast for the year ahead, with insights for both buyers and sellers. Whether you're looking to buy or sell in Charlotte, understanding the latest market trends and forecasts is crucial to making informed decisions about your real estate investments.
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Charlotte Housing Market Trends for 2023
The following analysis of the Charlotte housing market has been prepared by the “Canopy Realtor® Association.” The figures are for the ten-county Charlotte MSA which includes Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, and Union Counties in North Carolina and Chester, Lancaster, and York Counties in South Carolina. The report compares key housing statistics of the Charlotte MSA from Jan 2023 to Jan 2022.
The Charlotte region's housing market has experienced significant changes since last year. According to the market update for January 2023, the median sales price increased by 7.2% year-over-year to $375,000, while the average sales price rose 6.2% to $417,430. However, sellers in the region received less than the asking price for their homes, as the original list price-to-sales price ratio was 94.5%.
Pending contracts, which are an indication of buyer demand, decreased by 12% year-over-year, with 3,638 properties going under contract. Closed sales decreased significantly by 37.9%, while new listings also decreased by 20% year-over-year, with 3,184 new homes listed for sale. Despite the decrease in new listings, inventory rose by 55.8% year-over-year, with 5,768 homes for sale, representing 1.5 months of supply.
One of the notable changes is the increase in the average days on the market, which rose from 23 days in Jan 2022 to 46 days in Jan 2023, indicating a slowdown in the housing market. These changes suggest that the Charlotte region's housing market is shifting towards a buyer's market, with more inventory and fewer buyers.
Looking ahead to 2023, the Charlotte region's housing market is likely to remain relatively stable, with a gradual increase in inventory, as more sellers enter the market. Buyers can expect more bargaining power and negotiating room in their transactions, as the market shifts in their favor. However, sellers should be prepared for longer marketing times and may need to adjust their pricing strategy accordingly. Overall, the Charlotte region's housing market is a promising place for both buyers and sellers, with ample opportunities for growth and investment.
Charlotte Rent Price Trends
The Zumper Charlotte Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The North Carolina one bedroom median rent was $1,255 last month. Charlotte was the most expensive city with one bedrooms priced at $1,560 while Hickory was the most affordable city with rent at $850.
The Fastest Growing Cities For Rents in Charlotte Metro Area (Y/Y%)
- Concord had the fastest growing rent, up 25% since this time last year.
- Hickory saw rent increase 21.4%, making it second.
- Kannapolis was third with rent jumping 18.8%.
The Fastest Growing Cities For Rents in Charlotte Metro Area (M/M%)
- Concord had the fastest growing rent last month, up 5.3%.
Charlotte Real Estate Market Forecast 2023-2024
The Charlotte-Concord-Gastonia real estate market has been experiencing steady growth over the past year. The average home value in this region is $354,073, up 7.3% from the previous year. The median sale to list ratio is 0.985, indicating that homes are typically selling below the asking price. However, a significant percentage (20.8%) of sales are occurring above the list price, suggesting that there is still competition among buyers.
Looking ahead to 2023-2024, the market is expected to continue its growth trend with a 1.9% one-year market forecast. This is positive news for both buyers and sellers as it suggests a stable and healthy market. Additionally, the median days to pending in February 2023 was 24 days, indicating that homes are selling quickly in this region.
For buyers, this market forecast suggests that it may be a good time to purchase a home in the Charlotte-Concord-Gastonia area, as prices are expected to continue to rise, albeit at a moderate pace. However, with a significant percentage of sales occurring below the list price, buyers may be able to negotiate better deals.
For sellers, the forecast indicates that there will be continued demand for homes in the Charlotte-Concord-Gastonia area. However, sellers should keep in mind that homes are currently selling below the asking price on average, and should therefore set realistic expectations for their home’s value. Additionally, it’s important to note that inventory is on the rise, which may lead to increased competition among sellers. Overall, the Charlotte-Concord-Gastonia real estate market is poised for growth in the coming years, offering opportunities for both buyers and sellers.
Charlotte Real Estate Investment Overview
Charlotte is a bustling city in North Carolina, known for its thriving economy, rich culture, and abundance of outdoor recreational activities. With a growing population and a strong job market, the real estate market in Charlotte is poised for steady growth in the coming years. The average home value in the Charlotte-Concord-Gastonia area is $354,073, up 7.3% over the past year. Additionally, the 1-year market forecast predicts a 1.9% increase, making it a promising market for investors.
One of the top reasons to invest in Charlotte's real estate market is the city's strong job market. With a diverse range of industries and companies, including the headquarters of Bank of America and Duke Energy, Charlotte has a low unemployment rate and a growing population. This combination of factors is likely to continue to drive demand for housing in the city.
Another reason to consider investing in Charlotte's real estate is the city's attractive rental market. With a growing number of young professionals and families moving to the area, there is a strong demand for rental properties. The rental market in Charlotte is also experiencing significant growth and demand. With the influx of new residents and a strong job market, the demand for rental properties has been steadily increasing.
This has led to an increase in rental rates. One of the main factors contributing to the growth of Charlotte's rental market is the high demand for housing in the city's urban core. Many young professionals and families are seeking to live close to the city's vibrant downtown area, and are willing to pay a premium for the convenience and amenities this area offers. This has led to a surge in new apartment developments and mixed-use properties being built in and around downtown Charlotte.
Another contributing factor to the growth of Charlotte's rental market is the city's strong job market. With the presence of major employers like Bank of America, Wells Fargo, and Lowe's, many people are relocating to Charlotte for work and are looking for rental properties to live in while they establish themselves in the area.
Investing in rental properties in Charlotte can be a lucrative opportunity for real estate investors. With the city's strong job market and population growth, there is a consistent demand for rental properties. Additionally, with the high demand for urban housing, investing in properties in or near downtown Charlotte can provide a steady stream of rental income and the potential for long-term appreciation.
Charlotte also offers a relatively affordable real estate market compared to other major cities in the United States. This makes it an attractive option for investors looking to enter the market or expand their portfolio.
Finally, Charlotte has a strong and growing economy, which bodes well for the future of the real estate market. As the city continues to attract new businesses and residents, the demand for housing is likely to increase, creating opportunities for investors to capitalize on this growth.
In summary, Charlotte's real estate market offers investors a promising opportunity for long-term growth and income. With a strong job market, attractive rental market, affordable prices, and a growing economy, there are many reasons to consider investing in Charlotte's real estate market.
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 areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Charlotte.
Consult with one of the investment counselors who can help build you a custom portfolio of Charlotte turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Charlotte.
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Apart from Charlotte, you can also invest in the Durham real estate market. There are many reasons to buy investment properties in Durham. An unusual combination of features makes Durham attractive to real estate investors since it creates a large population of renters willing and able to pay more per month to live here because they cannot necessarily find their dream home. Durham is going to see heavy population growth over the next decade. Another seventy thousand people are expected to contribute to the demand for properties in the Durham real estate market overall.
Let us know which real estate markets you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
- https://www.zillow.com/Charlotte-nc/home-values
- https://www.zillow.com/Charlotte-Concord-Gastonia-nc/home-values/
- https://www.carolinahome.com/market-data/monthly-reports
- https://www.zumper.com/blog/charlotte-metro-report/
- https://www.neighborhoodscout.com/nc/charlotte/real-estate
- https://www.realtor.com/realestateandhomes-search/Charlotte_NC/overview
