It’s the question on everyone’s mind: How is the market looking? In short, the Charlotte real estate market is still holding strong.
Spring was met with lots of activity and many of the same challenges as recent years past: low inventory, high demand, multiple offers, and appraisal issues. We also saw indicators of a stabilizing market though…
Lower Showing Activity
On listings this spring, we had about half the showings that we saw on listings during this same time last year (or the year prior). For example, on a $800K – $1.2M home, we averaged around 10 showings vs. seeing 20 showings for a comparable home in 2022. Fewer showings mean fewer offers… and maybe only 1 offer. However, most in-town listings are still selling within the first weekend on the market. We simply aren’t seeing the six-figure overages on price, more like a $5k – $30k bump.
Smaller Due Diligence Fees & Added Negotiations
Due Diligence Fees have also come down. They are still significant enough to let the seller know the buyer isn’t planning to walk away from the deal, but not so significant that the seller can say “no” to all of the buyer’s requests. Sellers are having to negotiate a little more this year, either upfront on contract terms or while under contract on repairs or other buyer findings. We also aren’t seeing as much waiving of the appraisal and inspection. And while the bidding wars are still happening they are much tamer than last spring.
Steadier Home Price Increases
2023 home prices have still seen an increase, but only by about 1-3% depending on your area in Charlotte. Again, another sign of market stabilization. Deals are starting to feel a little more like a win-win for both sides instead of the buyer having to give up everything. We will continue to see this softening until the economy settles a little more.
Continued Lack of Affordable Housing
While signs of a stabilizing market were a welcome sign for many this spring, it wasn’t across the board. Housing under $500K is still very strained in Charlotte. As a result, the competition remained fierce and left many buyers in this price range hoping for relief.
Overall, Charlotte continues to be one of the fastest-growing metros in the U.S. so our market is projected to remain healthy. The South, in general, has seen the greatest housing market growth and price appreciation so far this year compared to other regions in the country.
If Charlotte real estate is truly back on a more normal track (compared to 2020 and 2021), then I expect to see seasonal trend patterns as we head into the back half of the year. We’ll see a summer slowdown, which could create some added opportunities for buyers, and an added flourish of fall real estate activity as the weather cools. Prices — IF they continue to appreciate — won’t really show it until spring 2024. Pricing will likely remain flat for the rest of the year.
If you are curious about specifics for your neighborhood or area of Charlotte, reach out. We love talking about all things real estate!
— Genevieve
