Market Update

July 1, 2019 – Now that everybody has had time to take a deep breath and get over Mecklenburg County’s tax value revaluation, it’s time to take a look at local housing numbers thru May provided by the Charlotte Regional Realtor Association. Though nothing dramatic is happening, an extended period of low unemployment, higher wages, and favorable rates have been a driver for the housing market. In Charlotte we are still seeing solid 5.7% year-over-year sales price growth, slight increases in year-over-year volume (+1.1%), a modest increase in listings (+1.2), and a stable 2.3 months of supply. These numbers are slightly better than the national numbers just released by CoreLogic, which showed a 3.6% year-over-year increase thru May with 5.6% increases predicted going forward.

Though there are substantive challenges including affordability and a lack of first-time buyers overly burdened with student debt, these numbers outline a fairly stable housing market in Charlotte and across the nation. Its clear that home ownership continues to be important for creation of long-term
wealth.

County Revaluation

Hold on to your seats, Mecklenburg County’s next big challenge is its recently announced property revaluation. Mandated by NC state law, Mecklenburg County is required to revalue property every 8 years. In 2011 the county’s revaluation collapsed under the weight of lawsuits and property appeals. It’s hoping this one goes more smoothly. Expect to see your new value by early in January 2019. The early word is that Countywide, median residential values will increase 40%, while median commercial values are expected to increase 76%. Ouch! If these are median values, look for bigger increases in intercity neighborhoods and traditional hot spots like Myers Park, Eastover, Foxcroft, and Cotswold. These are values not taxes. Tax rates will not be available until September 2019. County Commissioners could vote to keep values revenue neutral, but I wouldn’t bet on it. My guess is that as a result those owners can expect higher taxes and sub sequentially renter’s higher rents.

Look for notes on activity in Charlotte’s Regional Market in the next couple of weeks. We have a sense that the market has cooled, but will have November’s numbers by mid- month to evaluate.