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.
How is the Charlotte housing market doing currently?
The Charlotte Metropolitan Statistical Area (MSA) encompasses Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, and Union Counties in North Carolina, along with Chester, Lancaster, and York Counties in South Carolina. Let's delve into the comprehensive local market update provided by the Canopy Realtor® Association for December 2023.
Key Metrics – Year to Date Comparison:
Examining the data for December 2023, we observe significant changes in key metrics compared to the same period in 2022. Let's break down the numbers:
- New Listings: In December 2023, there were 1,980 new listings, representing a slight decrease of 1.3% compared to the previous year.
- Pending Sales: The number of pending sales increased by 7.0%, reaching 2,054, indicating a positive trend in buyer interest.
- Closed Sales: However, closed sales experienced a decline of 13.8%, dropping to 2,233 transactions.
- Median Sales Price: The median sales price saw a minor decrease of 3.5%, settling at $376,210.
- Average Sales Price: The average sales price, on the other hand, showed a 2.2% increase, reaching $462,963.
Market Dynamics and Trends:
Understanding the dynamics of the Charlotte housing market involves analyzing additional metrics and trends:
- Percent of Original List Price Received: Sellers received 96.7% of the original list price, indicating a competitive market.
- List to Close: The list-to-close duration increased by 10.3%, reflecting a lengthier process from listing to closing.
- Days on Market Until Sale: Homes spent an average of 33 days on the market until sale, a decrease of 21.4% from the previous year.
- Inventory of Homes for Sale: The inventory of homes for sale decreased significantly by 21.6%, totaling 4,236 homes.
- Months Supply of Inventory: The months' supply of inventory dropped by 11.8% to 1.5, indicating a lower housing supply.
Price Trends and Buyer Considerations:
Examining the price trends and overall market conditions can provide insights for both buyers and sellers:
- Are Home Prices Dropping? While the median sales price experienced a slight decrease, the average sales price increased, suggesting varied price trends across different segments of the market.
- Is It a Buyer's or Seller's Housing Market? The decrease in closed sales, coupled with a lower inventory and increased list-to-close duration, indicates a market leaning towards sellers. However, the months' supply of inventory suggests a balanced market.
- Is Now a Good Time to Buy a House? With a positive increase in pending sales and a relatively stable median sales price, it may still be a favorable time for buyers, although they should navigate the market carefully.
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 $1,200 last month. Huntersville was the most expensive city with one bedrooms priced at $1,550 while Hickory was the most affordable city with rent at $800.
The Fastest Growing Cities For Rents in Charlotte Metro Area (Y/Y%)
- Salisbury had the fastest growing rent, up 10.2% since this time last year.
- Huntersville saw rent increase 9.9%, making it second.
- Mooresville was third with rent climbing 2.8%.
The Fastest Growing Cities For Rents in Charlotte Metro Area (M/M%)
- Salisbury had the fastest growing rent last month, up 5.4%.
- Statesville saw rent climb 5.2%, making it second.
- Huntersville was third with rent increasing 2%.
Charlotte Housing Market Forecast for 2024
With a median sale to list ratio of 1.000, it indicates a balanced market. However, the percentage of sales over list price (38.2%) suggests a competitive atmosphere, making it more favorable for sellers. Home prices have experienced a 1.1% increase over the past year. This suggests a stable or appreciating market rather than a decline. The forecast indicates a positive trend, making a housing market crash less likely in the near future.
The average home value in the Charlotte-Concord-Gastonia area: $369,964, reflecting a 1.1% increase in the past year. Homes typically go pending within approximately 14 days. (Zillow's Data through November 30, 2023)
Market Forecast and Inventory
- 1-year Market Forecast (as of November 30, 2023): +1.2%
- For sale inventory (as of November 30, 2023): 7,806
- New listings (as of November 30, 2023): 2,513
Key Metrics for October 31, 2023
- Median sale to list ratio: 1.000
- Median sale price: $364,167
- Percent of sales over list price: 38.2%
- Percent of sales under list price: 43.6%
Is Now a Good Time to Buy a House?
Considering the current market conditions: The balanced median sale to list ratio suggests reasonable opportunities for both buyers and sellers. However, the competitive nature, with a significant percentage of sales over list price, might make it challenging for buyers.
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 $369,964. Additionally, the 1-year market forecast predicts an 8.2% 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.