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Housing Market In Charlotte

Housing Market in Charlotte: Prices, Trends, and Forecasts through 2022

Below is the housing market in Charlotte: prices, trends, and forecasts through 2022. The property market in Charlotte has been a continuous seller’s market, which has reduced supply and increased home prices. Charlotte’s real estate market is still experiencing rapid growth despite the pandemic. Homes are selling swiftly, there is a small supply, and prices are rapidly increasing. The increase in housing prices last year was the tenth in a row. In the Charlotte MSA, the number of houses for sale has now reached its lowest point in 17 years. There are only three weeks left of inventory.

Home sales and the median price paid for such properties climb in May 2022, maintaining the recent upward trend in the Charlotte region’s housing market. The Charlotte real estate market continues to be driven by a combination of strong demand and a lack of available housing. Since newcomers are drawn to Charlotte, there will be enough demand to prevent a steep decline in housing prices. Newcomers are moving there from pricey locations in the North and West.

Buyers from California, Chicago, New York, New Jersey, and Connecticut are in high demand. Here are this region’s most recent housing indicators. While inventory is still short, analysts predict that it will become more plentiful in 2022 as sellers who held off last year list this summer. This summer will be less hectic than last year because both housing prices and interest rates are predicted to rise in 2022.

Housing Market Trends & Forecasts for Charlotte 2022

In Charlotte, there are approximately more buyers than there are available homes for sale, making it a seller’s market. Housing demand is greater than housing availability. The median list price of a home in Charlotte, North Carolina, in May 2022 was $425.9K (according to Realtor.com), rising 18.3% from the previous year. $226 was the average listing price per square foot. $415,000 was the median sale price.

Homes in Charlotte typically sold for 3.53% more than the asking price in May, according to the sale-to-list price ratio of 103.53%. An ideal sale-to-ask price ratio for a buyer is closer to 90%. In the last month, the sellers in Charlotte have been able to maintain a strong position of leverage. A seller will always favor scenarios that have a ratio of at least 100%.

The “Canopy Realtor® Association” has created the analysis of the Charlotte housing market that is presented below. The statistics apply to the ten-county Charlotte MSA, which includes the South Carolina counties of Chester, Lancaster, and York as well as the North Carolina counties of Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, and Union. Key housing statistics for the Charlotte MSA from May 2022 and May 2021 are compared in the report. Homes in the Charlotte MSA typically sell after 13 days on the market.

In Charlotte, the average number of days on the market before a sale has decreased by 23.5% since last year. It would take roughly six months for the supply to reach zero in a robust, balanced market. If the supply rises to more than six months of inventory, the Charlotte market may shift in favor of buyers in terms of months of supply. However, based on the present patterns, we don’t anticipate any quick changes. A hot seller’s real estate market is one where there is less than 0.7 months’ supply of available houses on the market.

Trends in the Charlotte MSA Housing Market

In May 2022, the median sales price ($405,000) increased 22.0 percent from the previous year.

The average sales price increased 17.2 percent over the previous year to $475,778.

The original list price to sales price ratio for the month increased to 103.4 percent as the average list price ($500,871) rose by 23.3 percent.

It suggests that Charlotte area house sellers are getting more for their properties than they had originally asked for.

As 4,379 properties entered into contracts, pending contracts—a measure of buyer demand—were down from May 2017 and down 3.5 percent from the same month last year.

May 2022 closed sales were 8.3% lower than May 2021 closed sales.

Sellers posted 4,998 new houses for sale, a 3.3 percent rise in new listings from the previous year.

There are 2,963 properties for sale, or 0.7 months’ worth of supply, down 12.8% from a year ago (21 days).

Data shows that houses were on the market for an average of 13 days before a sale, down from 17 days in May 2021. Days on the market before a sale continued to decline.

Trends in the Charlotte Housing Market

The study that follows contrasts significant housing indicators for the “City of Charlotte” between January 2022 and January 2021.

In the City of Charlotte, the median sales price increased by 22.6 percent to $415,000.

In the City of Charlotte, the average sales price ($519,749) increased 15.9 percent over the previous year.

The original list price to sales price ratio for the month increased to 104.0 percent as the average sales price ($544,851) rose by 19.5 percent.

It suggests that City of Charlotte house sellers are getting far more for their properties than what they are asking for.

As 1,553 homes entered into contracts, pending contracts, which measure buyer demand, were down 6.5 percent from the previous year.

May 2022 closed sales were 9.6% lower than May 2021 closed sales.

Sellers posted 1,760 new houses for sale, a 3 percent rise in new listings from the previous year.

There were 988 homes for sale, or 0.7 months’ supply, in the inventory, a 24.8 percent decrease year over year (21 days).

Data shows that houses were on the market for an average of 12 days before a sale, down from 17 days in May 2021. Days on the market before the sale also continued to decline.

Trends in Charlotte’s Rent Prices

In Charlotte, North Carolina, a 1-bedroom apartment presently costs $1,490 a month on average. Comparing this to the prior year, there has been a 13% increase. The average monthly rent in Charlotte for a studio apartment rose by 1% to $1,547 over the previous month. A 1-bedroom apartment’s average rent grew by 1% to $1,490, and a 2-bedroom apartment’s average rent increased by 1% to $1,700.

In Charlotte, North Carolina, the average rent for a 2-bedroom apartment is currently $1,700, an increase of 13% from the year before.

Currently, a three-bedroom apartment in Charlotte, North Carolina, costs $1,926, an 8% rise over the previous year.

Currently, a four-bedroom apartment in Charlotte, North Carolina, costs $2,125 on average, up 5% over the previous year.

The Zumper Charlotte Metro Area Report examined recent active listings from five metro areas to determine which cities were the most and least costly, as well as which had the fastest-rising rents. In North Carolina, the median one-bedroom rent for the previous month was $1,100. The most costly city was Charlotte, where a single bedroom cost $1,430, while Gastonia had the lowest rent at $1,010.

The Charlotte Metro Area’s Fastest Growing Cities For Rents (Y/Y%)

The fastest-growing rent was in Rock Hill, up 22% from this time last year.

Rent in Charlotte increased by 15.3%, placing it second.

Rents in Gastonia increased 14.8%, placing it third.

The Charlotte Metro Area’s Fastest Growing Cities For Rents (M/M%)

The fastest-growing rent last month was in Rock Hill, up 5.2%.

Concord came in second with an increase in rent of 4.2%.

Charlotte came in third with a 2.1% increase in rent.

Forecast for the Charlotte Real Estate Market for 2022–2023

What are the real estate market forecasts for Charlotte for 2022 and 2023? Depending on whether you’re on the buyer’s or seller’s side of the equation, these statistics could be either positive or negative. The rise in new listings suggests that more homeowners are ready to advertise their properties for sale. Since there is now a shortage of inventory, prices will rise over the next few months. As you can see, the Charlotte housing market hasn’t yet begun to slow down.

Whether they want to buy to hold and rent, rehab and flip, or invest in multi-family buildings, investors have plenty of options in Charlotte. In the most recent quarter, Charlotte’s real estate appreciated by about 8.30%, which works out to an annual appreciation rate of 37.58%. You have the option of selling your house to prospective buyers.

One of the strongest long-term real estate investments in the United States historically has been Charlotte. The Charlotte property market had a large price increase in 2020 and 2021 as a result of high demand and inadequate supply. Let’s examine the historical pricing trends that Zillow has tracked for the last ten years. The mean home value in the Charlotte MSA has increased by about 148% throughout the last ten years (July 2012). (Zillow Home Value Index).

The average home value in the Charlotte MSA has increased by 31.1% in the last year, and it is currently $380,090. Real estate is currently a seller’s market in Charlotte. Demand is outpacing supply, favoring sellers in price talks over buyers. In other words, there aren’t as many houses for sale as there are potential purchasers.

If mortgage rates continue to be low, this will support home buying activity and drive up home values. The best time for sellers to list their Charlotte home for sale is right now. The pricing of properties is rising and is more appealing to sellers at this time.

Charlotte-Concord-Gastonia Over the previous year, house values in the metro increased by 31.1%.

The home market projection for the Charlotte metropolitan area through May 2033 is optimistic.

By May 2023, Zillow projects that property values in the Charlotte metro area might increase by 14.5%.

If this prediction comes true, housing prices in the Charlotte metro area will rise in the third quarter of 2023 compared to the third quarter of 2022.

Due to the mismatch between supply and demand, Charlotte (City) property values have increased by 30.4% in the last year (current value: $396,919) and will do so again in the following year.

Home values in Concord have increased 32.4% in the last year (current value: $372,094).

Home values in Gastonia have increased 33.6% in the last year (current value: $286,484).

In North Carolina, homes typically cost $315,331. (middle price tier of homes).

NC home values have increased by 27.8% in the last year, and they will do so again in the upcoming year.

Overview of Charlotte real estate investments for 2022

You undoubtedly want to know why we suggest Charlotte to real estate investors now that you know where Charlotte is. Real estate investing is promoted as a terrific method to get rich. Is Charlotte a Good Place to Invest in Real Estate? Many real estate investors have pondered if it would be wise to invest in real estate in Charlotte. If you want to know what the market has in store for real estate investors and purchasers in 2022, you need to dig deeper into local trends.

When thinking about investing in real estate, people frequently focus on hot markets like San Francisco or areas where residents are moving away because of the high cost of housing. In other instances, investors concentrate on the “cool” locations that people desire to visit and believe that they will generate a strong return on their investment. We took the time to search for better long-term options, which led us to the Charlotte real estate market. North Carolina’s largest city is Charlotte.

With a population of about 727,822 people, it is a city in Mecklenburg County that is just marginally walkable. The Charlotte housing market has been characterized by a limited supply, rising costs, and rising rent, like many other rapidly expanding cities. Housing units in Charlotte are divided between those occupied by owners (53.09%) and renters (46.91%). The most typical dwelling types in Charlotte, according to real estate data company Neighborhoodscout.com, are single-family detached homes with three and four bedrooms.

Other common housing types in Charlotte include sizable apartment buildings, duplexes, rowhouses, and houses that have been converted into apartments. Over 800,000 people live in the city proper. Much more people live in the even bigger Charlotte Metropolitan Statistical Area, which has a population of about 2.5 million. It is the second fastest-growing city in the Southeast of the United States and one of the nation’s fastest-growing metro areas. Between 2004 and 2014, only Jacksonville, Florida, experienced faster growth.

You shouldn’t expect to earn a lot of money by renting out the most costly home on the Charlotte real estate market if you’re trying to turn a profit. Maybe you’re searching for a little different holdover, a Charlotte investment home that you might live in now or sell after you retire. In either case, the first thing to think about is recognizing your prospective profit and purpose. Let’s examine the many encouraging developments in the Charlotte real estate market that can benefit investors who are eager to purchase an investment property in this area.

The Charlotte Job Growth

Why do individuals relocate to a location? They might move there in order to retire there or because they believe it to be a safer place. However, economic opportunity is typically a factor in individuals moving to or away from a location. The unemployment rate in Charlotte was 3.1% in December 2019 compared to 3.8% in December 2018. 3.9% is the US average.

The region’s historically robust economy explains why about 100 people relocate there every day. And this fuels the market for real estate in Charlotte. The number of jobs in Charlotte increased by 2.3 percent between 2018 and 2019, or about 27,300 jobs, year over year. The projected rate of job growth over the next ten years is 45.2%, which is greater than the 33.5% US average.

Impact of the Pandemic: The unemployment rate in Charlotte, NC is now 3.60 percent, up from 3.50 percent last month and 5.40 percent a year ago. This is less than the average over the long run of 5.12%. The unemployment rate in Charlotte has steadily decreased since reaching a high of 13.9% in May 2020.

Real estate in Charlotte is reasonably priced.

When compared to national prices, Charlotte’s home prices are somewhat cheaper than those in the rest of North Carolina. Townhomes cost about $200,000, and detached homes about $300,000. Duplexes cost approximately $400,000 to purchase. Buildings with three and four units cost about $120,000. As a result, Charlotte’s real estate market offers investors a particularly fantastic deal. Currently, the City of Charlotte and the Charlotte MSA have median home prices of $345K and $338K, respectively (Refer to the latest market trends & prices given above).

Population Growth and Quality of Life

The median age of Charlotte is 34, which is a few years younger than the national average. That’s because a lot of individuals are coming here to find employment. Young adults who come here for school and job will eventually move up in the Charlotte housing market, whether in the city or the suburbs, creating demand for real estate from both those relocating here for work and young adults who stay and raise families here. The Charlotte real estate market will grow over the long term because it is a top destination for Millennials.

According to the U.S. News rankings of the best places to live, Charlotte, North Carolina, comes in rather high. On the lists of the best locations to live and retire, they came in at number 22. Other locations have higher rankings for desirability, with Austin, Texas occasionally benefiting from a “coolness” element that attracts tourists. Charlotte received a high ranking because to the abundance of jobs, general value, amenities, and community safety. This will draw visitors who might not be moving specifically for job and persuade many locals who were born and reared to remain.

This means that even if the local economy slows down in the future, the Charlotte real estate market will continue to be robust. The housing market in Charlotte has unusual stability thanks to the high demand for homes there. Additionally, intangibles that can’t be quantified by measures exist, such as great southern comfort and high quality of life. Although living in the south is typically associated with ease of life, few southern cities have a housing market as stable as Charlotte’s.

The Mobile Home Market in Charlotte

We won’t waste time waxing lyrical about the upscale home market in Charlotte. Instead, we’ll talk about a segment of the real estate market in Charlotte that is frequently ignored: the affordable possibilities. The median annual household income in Charlotte is $53,274, and the city’s per-capita income is at $33,209. The yearly average in the US is $53,482.

Since the median rent is about $1,500 per month, many people are priced out of the housing market as a result. If you do the arithmetic, you’ll discover that the Charlotte area has a price-to-income ratio of 5.45, with an average household income of $53,482 and a median list price of $292,000. In other words, it’s exactly as expensive here as it is for people who live in Denver or New York.

For many, renting a mobile home is the answer. The annual cost of mobile homes is about $40,000, which keeps many prospective tenants from renting. The issue of keeping mobile houses warm in the winter is also solved by the comparatively mild temperature of the Carolinas. Since there are so many mobile homes in the Carolinas, many renters view them as a viable alternative.

Mobile homes make up 17% of residences in North Carolina and close to 20% of dwellings in South Carolina. Mobile home parks are still frequently erected on private rural land, but there aren’t many people who build them. We couldn’t ignore this distinctive feature of the Charlotte real estate market given the extremely high ROI of mobile home parks due to their little maintenance needs.

Charlotte’s Attentiveness to Landlords

North Carolina is thought to be welcoming to landlords. There are no notice of entry laws in the state. For leases that are for a shorter period of time than a year, a formal agreement is advised but not required. Rent must be paid within a five-day grace period before late fines are applied. A rental license is not required to be a landlord. Rent control and regulation are not present in the state. On the eleventh day, you can start the eviction process if they don’t pay the rent. There is no need to give notice if they break the contract, especially if it involves a crime, and the eviction procedure is sped up.

Charlotte is becoming even more landlord-friendly thanks to a new law. When an eviction proceeds to court, a law that was implemented in the summer of 2018 permits landlords to recoup their legal expenses and court charges from tenants. The idea that you won’t own a house where the tenants aren’t paying rent for months while you build up outrageous legal expenses is one of the reasons we advocate the Charlotte housing market.

Property Taxes are Low

Property taxes in South Carolina are sixth-lowest in the nation. Despite ranking 22nd out of the 50 states, North Carolina did worse than its neighbor Georgia, which came in at 25th with an average performance. If you own land outside of your state, you would have to pay a little bit more than residents. You’ll spend an average of $1300 a year in property taxes on a South Carolina property, but, when you take into account the state’s less expensive than average real estate. Contrast that with the typical Texas cost of $2700, the $3300 bill in Wisconsin, the $4000 bill in Illinois, and the staggering $7600 bill for a property in New Jersey.

Large Student Market in Charlotte for Rental Homes

There is bound to be a significant university in the state’s largest city. There are numerous them in Charlotte. Of course, this area is home to a campus of the University of North Carolina. There are twenty universities in and near Charlotte, North Carolina, including Johnson C. Smith University, Davidson College, and Queens University of Charlotte. You might purchase apartment complexes near major campuses, right adjacent to smaller colleges like Johnson and Wales University, or anywhere else.

The Charlotte Downtown Redevelopment

Charlotte is seeing a wave of downtown revitalization. Grants and special rights are available for properties located near transit corridors. For redevelopment, the city has targeted particular routes including Rozzelles Ferry Road and Beatties Ford Road. North Charlotte will also undergo development. If you acquire nearby properties and refurbish them, you could later choose to either rent them out at higher rates or sell them for a big profit. The exciting possibility is the car-free city center, which might transform dilapidated structures into high-end residences. The North Tryon Vision Plan is the name of the sixty-acre, fifty-city block-sized project.

Conclusion

Real estate in Charlotte has increased by 120.18% over the past ten years, or an average yearly rate of 8.21%, placing Charlotte in the top 10% of all U.S. cities for real estate appreciation. Charlotte has a history of being one of the top long-term real estate investments in the country over the past ten or so years if you’re a house buyer or real estate investor. Be careful when making any real estate purchases. Consider the particulars of the Charlotte real estate market at the time you plan to buy.

Charlotte neighborhoods with the most appreciation since 2000

Dilworth

East Dilworth

Wilmore

Collingwood

Sedgefield

Belmont

Elizabeth

Carlton Heights

NoDa

/ Chantilly / Commonwealth

For the majority of investors, purchasing or selling real estate is one of their most significant choices. Selecting a real estate expert or counselor is nevertheless a crucial step in this procedure. They are knowledgeable on important aspects of your niche markets, such as alterations in market dynamics, market projections, customer attitudes, ideal timing and locations, and interest rates.

You can invest in Durham real estate in addition to Charlotte. In Durham, there are numerous benefits to purchasing investment homes. Durham has a unique set of characteristics that attract real estate investors because they result in a sizable community of renters who are willing and able to spend extra per month to live here because they may not always be able to find their dream home. Over the following ten years, Durham’s population will increase significantly. The entire demand for homes in the Durham real estate market is anticipated to increase by another 70,000 individuals.

The city of Wilmington is home to North Carolina’s second-largest real estate market. The market for rental properties in Wilmington is steady, modestly expanding, and is not likely to change any time soon. Rents in Wilmington are greater than you might anticipate given average incomes and property values for a number of reasons, which boosts rental properties’ return on investment. Moreover, depending on the market you want to target, there are a number of niches you can investigate to generate even bigger returns.

Another thriving real estate market in North Carolina is Asheville. Investors would benefit from the consistent, steady growth of the home market in the Asheville region, which also has a number of lucrative rental markets. A solid employment market and demographic momentum that will keep it running strong for years to come balance this out.

Another strong real estate market is in Greensboro, North Carolina. The third-largest city in the state is Greensboro. Investors seeking stable, predictable returns will find the Greensboro real estate market to be suitable. While the property itself is very inexpensive, the return on investment is pretty good and is not anticipated to fall. The work market is robust enough to gradually draw more residents and raise pay levels, but it won’t lead to a huge surge in new development that would lower nearby property values. Investors have a variety of property types and marketplaces to choose from because to the region’s size and diversity.

Which real estate markets do you think are greatest for investing in real estate?  Contact Hoard Law for any questions or advice!