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.
Housing remains bullish. According to the Home Purchase Index, Fannie Mae found that 58% of Americans say it’s a good time to buy a home, and maybe as importantly 65% say it’s a good time to sell one! These sentiments likely have a lot to do with interest rates that, even though they have been bouncing around a bit, are 1% lower year over year and close to historical lows.
Additionally, rents have reached a national average of $1,465/ month in June, up $45 bucks from this time last year. Charlotte comes in at $1,243 up 5% since last year. Throw in rising consumer credit scores, and it really is a good time to call Wood-Williams Realty, LLC.!
A synopsis of data drawn from South State Bank’s Expert Update published 9/20/19
That said, we wanted to share neighborhoods across Charlotte where we are active and provide some single-family activity data from the last 90 days:
||Cost Per Sq Ft
| Myers Park
| Madison Park
| Quail Hollow
| Providence Park
| Sharon Hills
This information was compiled from CMLS on 9/20/2019 at 11 AM. All single-family properties that identified themselves as being in those neighborhoods were used.
This is just a broad look at these neighborhoods. For an expert opinion give us a call. Next month look for a similar survey of condo activity.
Here’s a snapshot of our latest listings. We look forward to hearing from you!
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
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.