This week the Fed reduced benchmark rates for the third time this year, leaving “market” rates in the neighborhood of 3.6%; approximately 1% lower than this time last year. In Charlotte inventory is down, pending sales are up, and new listings continue to decrease. Obviously, these factors are pushing up pricing (median home prices are $253,080 up 9.3% year over year), shortening time property is on the market (91 days list to close), and lowering months supply to 2.2 months. Clearly the Charlotte metro market remains strong.
Interestingly TransUnion predicted this week that the US Market is on the verge of a surge in First Time Buyers! They are predicting that the 2020 to 2023 period will find a huge increase in buyers, climbing from the last full three-year period 2016,2017,2018 of 7.6 million first time buyers to between 8.3 and 9.2 million in the 2020,2021, 2022 period. They argue that driven by:
- Low unemployment 3.5%
- Wage growth
- Expected slowing home price appreciation
- Low interest rates 3.6% (Freddie Mac)
that first-time buyers will be entering in waves. Where have they been? Analysis say that 40% have delayed their first purchase looking for a steady job, that 35% are blaming high home prices and a lack of homes priced under $200,000 for the delay, and a good percentage are trying to unload education debt. Regardless of the reason, their entry will be welcome and will open opportunities for move up buyers in all price categories.
Maybe its time to make a move!
Sourced from Weekly Market Activity Report 11/2/2019 Canopy/CMLS, and TransUnion report.