Some people are dreaming of a new home in 2021. A new report from Realtor.com ranks Charlotte the number 3 housing market in the country for 2021. Charlotte came in just behind Sacramento, California (1) and San Jose, California (2). Interestingly, 6 of the cities on the list were on the East Coast.
Charlotte’s high ranking doesn’t mean you’ll see big changes in the current Charlotte market. The site’s senior economist, George Ratiu, predicts 2021 will be similar to 2020 in the Queen City.. which we found to be surprisingly manic. Early news of the scope and effect of the Pandemic, made the real estate market hold its breath with anticipation of a complete hard stop for sales. That simply wasn’t the case here. Charlotte housing sales kept on an upward trend, even with a bit of a spike.
Why did Charlotte rank so high?
Here’s what the site said: “The area’s high quality of life, great weather, strong school system including Providence High (10/10 greatschools.org) and rich history draw a diverse mix of both young and old buyers. Millennials are beginning to transition from the downtown city center toward the suburbs as they raise families and take advantage of the increased affordability and extra space. With access to both the beach and mountains, Charlotte has something for everyone, including kayaking along the Catawba River and hiking the Carolina Thread Trail. Housing supply has been tight, but new construction is booming as builders try to meet current demand. Charlotte was No. 7 on 2018’s top markets list.”
What’s that mean for the market?
It’s likely that home prices will continue to increase and houses will continue to sell in record time. A closer look at the report shows an expected 5.2% increase in housing prices. Right now the median home price is $368,819. If the predictions are correct, the median home price will be $387,998 at this time next year.
What if I’m trying to buy?
You’ll see higher prices and lots of competition so be prepared to act fast. We expect properties will get multiple offers. Get your financing in order now. Low mortgage rates (for now) will help you with those monthly payments.
What if I’m trying to sell my home?
You’re more likely to get a full price offer for your home. Talk to your agent about pricing.
Interestingly, 33% of shoppers were from out-of-state in 2020. Yes, Charlotte has an affordable housing shortage but we aren’t as bad compared to other large metro areas and you can often get more square footage here for the price. Realtor.com expects the trend of new buyers in Charlotte from Atlanta, New York, Washington, D.C., Miami, and Chicago to continue.
On average, the cities on the top 10 list, including Charlotte have a larger share of millennial homeowners. According to realtor.com, “A market’s ability to lure millennials is a good indicator of the livability of the area including: job opportunities, dining, and entertainment. “
Among the measures Realtor.com considers: household formation, residential construction, and unemployment and mortgage rates, and current market.