Charlotte’s real estate market could be summed up in the last year with two phrases: soaring prices, low inventory. Even though the Charlotte market is still hot, there are some factors on the horizon that could impact the real estate landscape in 2022.
The question on everyone’s mind is how is the market going to look next year?
As we approach the end of 2021, the experts at 5 Points Realty have been pondering this as well.
The short answer is we could see some definite changes.
One of the biggest factors that could impact the market is mortgage rates. Mortgage rates are predicted to climb next year and even a small percent could add 100 dollars or more to your monthly payment.
Here are a few predictions from our experts:
IN-TOWN MARKET
Michael Doney – Owner of 5 Points Realty
” For the in-town market, I feel like we are at a turning point where people are getting tired of paying top dollar for properties that don’t check all of their boxes or for properties that were flipped without quality work and fresh design. I think 2022 will be a strong year for re-sale properties that have been maintained well and even a better year for new construction from quality builders that utilize modern technologies for efficiency and comfort and keep in trend with the latest housing fashions. I also think 2022 will weed out some of the house flippers and renovators who have been doing shoddy work and getting away with it due to the sizzling hot market we have had for some years.”
SUBURBAN MARKETS
Michael Doney – Owner of 5 Points Realty
“In the suburban markets, I think you will continue to see regional and national builders search for land for new subdivisions for housing in the 300’s to 400’s. Most of those builders have proven track records and sales in that market and will continue at a rapid pace. ”
PRICES WILL PLATEAU
Joshua Looney
” I think the meteoric rise in prices we’ve seen the past few years will plateau but that inventory will remain low and the market competitive.”
THERE’S NO MAGIC EIGHT BALL
Edwin Wilson – Co-owner of 5 Points Realty
” Interesting, as I was just asked this question yesterday. The gentleman who asked me is contemplating whether to list his property now or wait.
I shared with him that many people in 2007 waited, and believed that things would continue to go up and up and up. 2008 hit, and the market came to a standstill with values dropping significantly. As we all know, it took many years to recover.
Whereas I don’t have a true prediction (in the sense of coming to a conclusion), I think that we will not continue to see a rapid increase in values any longer. I think prices have plateaued. We are starting to see a data trend in our market that sellers are not receiving as many offers, and closed prices are starting to come down to list prices.
I don’t think that we will see a housing bubble burst, but ya know, who the heck knows 🙂 “
One thing that is for sure is that anyone considering buying or selling will need experienced real estate veterans to help them navigate the market. We can help! Give us a call!