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.
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 April 2023 to April 2022.
Based on the provided document, here are the key metrics for the Charlotte region's local market update for April 2023:
New Listings: In 2022, there were 5,808 new listings, but in 2023, the number decreased to 4,349, indicating a decline of 25.1%.
Looking at the year-to-date figures, there was a decrease of 17.6%, with 19,258 new listings in 2022 compared to 15,873 in 2023.
Pending Sales: The number of pending sales in April 2023 was 4,328, showing a decline of 9.1% compared to 4,762 in 2022.
For the year-to-date figures, there was a decrease of 11.6%, with 17,738 pending sales in 2022 and 15,678 in 2023.
Closed Sales: The number of closed sales in April 2023 was 3,581, representing a significant decrease of 21.8% from 4,579 in 2022.
Year-to-date figures also showed a decline of 23.7%, with 16,663 closed sales in 2022 compared to 12,719 in 2023.
Median Sales Price: The median sales price for April 2023 was $375,900, experiencing a slight decrease of 1.1% from $380,000 in 2022.
Year-to-date figures, however, showed a positive change, with a 1.2% increase in the median sales price from $365,000 in 2022 to $369,348 in 2023.
Average Sales Price: The average sales price in April 2023 was $460,498, reflecting a 2.6% increase from $448,967 in 2022.
Year-to-date figures also showed a positive change, with a 3.8% increase in the average sales price from $422,136 in 2022 to $438,366 in 2023.
Percent of Original List Price Received: The percent of the original list price received in April 2023 was 97.5%, indicating a decrease of 5.2% compared to 102.8% in 2022.
Year-to-date figures showed a similar decline of 5.3%, with 96.1% in 2023 compared to 101.5% in 2022.
Days on Market Until Sale: The average days on the market until sale increased significantly in April 2023, reaching 39 days, a substantial rise of 143.8% from 16 days in 2022. Year-to-date figures also showed a significant increase of 114.3%, with an average of 45 days on the market until sale in 2023 compared to 21 days in 2022.
Months Supply of Inventory: The months supply of inventory increased to 1.3 months in April 2023, indicating a growth of 62.5% from 0.8 months in 2022.
Average List Price: The average list price for April 2023 was $523,738, showing an 8.3% increase from $483,477 in 2022.
Year-to-date figures also demonstrated an 8.2% increase, with the average list price reaching $490,003 in 2023 compared to $452,717 in 2022.
Inventory of Homes for Sale: The inventory of homes for sale in the Charlotte region experienced an increase of 27.7% in April 2023. The rise in inventory suggests that more homes are available on the market compared to the previous year. This increase could be an encouraging sign for potential buyers, as it provides them with a wider selection of properties to choose from. However, it is essential to monitor whether this trend continues in the coming months and how it impacts the overall market dynamics.
Looking ahead to 2023, the housing market trends in the Charlotte region indicate a decrease in new listings and closed sales, along with a stable median sales price. However, there has been a significant increase in the average days on market until sale, suggesting a longer selling process. On the positive side, the inventory of homes for sale has grown, leading to a higher months supply of inventory.
These trends suggest a market that is experiencing some shifts in supply and demand dynamics, potentially providing buyers with more options and a less frantic market atmosphere. Continued monitoring is recommended to assess the long-term implications of these trends on the Charlotte region's housing market in 2023.
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 $1,254 last month. Charlotte was the most expensive city with one bedrooms priced at $1,570 while Hickory was the most affordable city with rent at $750.
The Fastest Growing Cities For Rents in Charlotte Metro Area (Y/Y%)
- Charlotte had the fastest growing rent, up 12.1% since this time last year.
- Hickory saw rent increase 8.7%, making it second.
- Rock Hill was third with rent jumping 8.6%.
The Fastest Growing Cities For Rents in Charlotte Metro Area (M/M%)
- Gastonia had the fastest growing rent last month, up 1%.
Charlotte Real Estate Market Forecast 2023-2024
The Charlotte real estate market is showing positive signs for the future. According to Zillow, the average home value in the Charlotte-Concord-Gastonia area is $365,067, representing a 2.7% increase over the past year. This upward trend in home values is expected to continue, with a forecasted 6.2% increase over the next year.
The market is currently competitive, with a median sale to list ratio of 0.988, indicating that homes are selling close to their listing prices. Additionally, 23.2% of sales are happening above the list price, demonstrating strong buyer demand. However, 59.4% of sales are occurring below the list price, suggesting some room for negotiation.
One notable aspect of the market is the relatively short time it takes for homes to go pending, with a median of 12 days. This indicates a quick pace of activity, with homes receiving offers and going under contract relatively swiftly.
Overall, the forecast for the Charlotte real estate market looks promising, with expected price appreciation and a balanced market favoring both buyers and sellers. However, it's important to closely monitor market conditions and adapt strategies accordingly as the dynamics may change over time.
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.
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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
