The Spring housing market is typically the busiest time of the year for residential real estate. Charlotte started the year ranking high on multiple lists of places forecast to have an above-average housing market in 2021. So what reasonable expectations should sellers and buyers have in the next few months?
Let’s set the scene. Home prices are up. Inventory is still low. And interest rates are good.
It’s a seller’s market for the foreseeable future. The average home price rose 15.4% last year but it’s not slowing things down. Based on the multiple bids we are seeing for homes in Charlotte, sellers are getting top dollar. You can thank the low inventory in Charlotte and the rest of the nation for that. Overall, it’s down 30%… the lowest level since 1999.
Mecklenburg County officials briefed county commissioners about the market during their annual retreat last month and said 99.2% of homeowners are getting their asking price or more within 23 days of being on the market, according to county data.
Translation: you can sell your home for more money in a faster period of time
With so many people making improvements to their homes in the last year while they weathered the pandemic lockdowns, you’ll definitely want to make sure your home is up to par with renovations and updates. No one wants to go through that again after they move. However, the dreamy attraction of open concepts is fading as people actually want the ability to separate from each other!
Bigger homes with outdoor spaces are topping wishlists. People have a new respect for larger living spaces after being stuck at home for so long. That doesn’t rule out smaller homes though as the economic effects of the COVID outbreak have some people looking to downsize.
Demand for homes is at its highest since 2005. It stands to reason that with fewer homes available, more people are fighting for the same dream home. Unfortunately, buyer budgets have dropped. By some reports, nearly two-thirds of buyers have lowered their budget by an average $28,400.
That means more affordable properties are harder to come by.
Adding to the problem, there are some aggressive buyers fighting for the limited properties. Charlotte’s also ranking high on lists of places good for real estate investors. The Fed reduced interest rates last year to record lows helping more people get into the market. It’s also part of the reason investing is up.
The “Emerging Trends in Real Estate” report, by the PwC and Urban Land Institute ranks Charlotte as 4th for strong investor demand.
This is where it becomes critical to have financing in order and work with a good agent who works quickly and knows how negotiations work!
Here’s the good news 5 Points Real Estate agents can help either seller’s or buyer’s maximize their dollars and find the home that’s right for them. We’ve seen lots of changes in the market and we haven’t seen the last but we’ve got the right people ready to deal with it.
Ready? We are!