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Charlotte Housing Market: Trends and Forecast for 2024

CEO Khai Intela
The Charlotte housing market has been experiencing a surge in demand, driven by a thriving economy, job growth, and a high quality of life. Known as the Queen City, Charlotte is one of the fastest-growing...

The Charlotte housing market has been experiencing a surge in demand, driven by a thriving economy, job growth, and a high quality of life. Known as the Queen City, Charlotte is one of the fastest-growing cities in the country, attracting young professionals and families 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) includes counties in both North and South Carolina. Let's take a closer look at the comprehensive local market update provided by the Canopy Realtor® Association for December 2023.

Key Metrics - Year to Date Comparison:

  • 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 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 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-bedroom units 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:

  • Salisbury had the fastest-growing rent, up 10.2% since the previous year.
  • Huntersville saw rent increase by 9.9%, making it second.
  • Mooresville was third with rent climbing 2.8%.

Charlotte Housing Market Forecast for 2024

With a median sale-to-list ratio of 1.000, the Charlotte housing market 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, indicating a stable or appreciating market rather than a decline. The forecast for the Charlotte housing market 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 is $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 Housing Market Forecast for 2024 Source: Zillow

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, and 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 major companies, Charlotte has a low unemployment rate and a growing population. This combination of factors is likely to continue driving demand for housing in the city.

Another reason to consider investing in Charlotte's real estate is the 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 experiencing significant growth and demand, especially in the urban core, where many seek to live close to the vibrant downtown area.

Investing in rental properties in Charlotte can be a lucrative opportunity. With the city's strong job market and population growth, there is consistent demand for rental properties. Additionally, investing in properties in or near downtown Charlotte can provide a steady stream of rental income and the potential for long-term appreciation.

Charlotte offers a relatively affordable real estate market compared to other major cities in the United States, making it an attractive option for investors looking to enter or expand their portfolio.

Lastly, Charlotte's strong and growing economy 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.

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