Charlotte Real Estate Update – Spring 2021

The weather is great, the trees are in bloom, and Charlotte’s real estate market is rocking!

WOW it’s still crazy out there. Decembers all time low mortgage rates have amplified buying particularly by Millennials and second home buyers nationally accelerating prices and depleting inventories.

Nationally January’s prices were up 11.2% continuing an 8 month broadly based trend all the while February saw the largest plunge in inventories nationally on record (29.5% according to Lawrence Yun NAR chief economist).

Locally the trends are no different! Market-wide inventory levels are down 64.2% amounting to a .6 months’ supply for single family homes and a .8 months’ supply for condos. Even with very limited inventory pending sales (total units) were up in February year over year 8.5% for single family homes and 11.7% for condos. You know what that means. Multiple offer situations and % of list prices market wide at 98.3% on single family homes and 98.8 percent for condos.

Charlotte Business Journal recently shared a list compiled by Niche (a web company focused on connecting colleges and schools with students and families) of the best neighborhoods in each state and where they rank nationally. Twenty Charlotte-area neighborhoods made the top 25 in the state:

  1. Ballantyne East (state rank 3, nationally 162)
  • A+ public schools, good for families, and health and fitness
  • C+ Cost of living
  1. Dilworth (state rank 4, nationally 185)
  • A+ good for families, nightlife, health and fitness
  • C Cost of living
  1. Fourth Ward (state rank 5, nationally 207)
  • A+ Nightlife
  • C+ Public schools
  1. Uptown (state rank 6, nationally 305)
  • A+ Nightlife, health and fitness, and commute
  • C Cost of living
  1. Davidson (state rank 7, nationally 313)
  • A+ Good for families, jobs
  • B- Cost of living
  1. Ballantyne West (state rank 9, nationally 343)
  • A+ good for families and health and fitness
  • B- Cost of living
  1. Providence Crossing (state rank 11, national 421)
  • A+ Public schools and good for families
  • C+ Cost of living
  1. Sharon Woods (state rank 12, nationally 422)
  • A+ Good for families and health and fitness
  • C+ Cost of living
  1. First Ward (state rank 13, nationally 450)
  • A+ Nightlife, health and fitness, and commute
  • C cost of living
  1. Commonwealth (state rank 14, nationally 501)
  • A+ Good for families and nightlife
  • B- Cost of , diversity and commute
  1. Cherry (state rank 15, nationally 519)
  • A+ Nightlife and health and fitness
  • C cost of living
  1. Freedom Park (state rank 17, nationally 622)
  • A+ good for families, nightlife, and health and fitness
  • C cost of living
  1. Ashbrook (state rank 18, national rank 628)
  • A+ good for families, nightlife, and health and fitness
  • C+ cost of living
  1. Piper Glen Estates (state rank 19, national rank 637)
  • A+ good for families and health and fitness
  • C+ Cost of living
  1. Hempstead (state rank 20, national rank 663)
  • A+ good for families and health and fitness
  • B- cost of living and commute
  1. Chantilly ( state 21, nationally 688)
  • A+ good for families and nightlife
  • C+ cost of living
  1. Colonial Village (state 22, national 694)
  • A+ good for families and nightlife
  • B cost of living and commute
  1. Third Ward (state rank 23, national rank 699)
  • A+ nightlife and commute
  • C+ schools
  1. Providence Plantation (state 24, national rank 727)
  • A+ good for families and health and fitness
  • C cost of living
  1. Provincetowne (state rank 25, national rank 769)
  • A+ public schools and good for families
  • C+ cost of living

A fun list. Maybe your neighborhood made it or maybe your next neighborhood will! Obviously, people are buying and selling; and We would love to hear from you.

Numbers compiled from Canopy Realtor Association Charlotte region overview and from the Charlotte Business Journal “The Charlotte area’s best places to live, according to Niche.

Year End 2020 Update

It’s been a crazy year that’s thankfully coming to a close. As I so apply heard a five-year-old put it, ”I’m sick of groceries!”

As we tiptoe into 2021, where do we expect the Charlotte housing market to go?

One by one, real estate economists are coming out with startling predictions, all forecasting growth:

  • The National Board of Realtors Chief Economist is predicting new home sales to jump 21% in 2021 along with a 9% jump in existing homes nationally.
  • Zillow is predicting annual home sales growth to be the highest in almost 40 years, forecasting 21% annual growth to almost 6.9 million homes sold (the largest since 1983). They believe that as the market begins to find certainty, economic recovery will pull people off the sidelines and send 18 to 25 years old out of their parent’s homes and back to amenity-rich cities. They also argue that this surge will drive prices up more than 10%.
  • Realtor.com’s Chief Economist predicts a 13.8% increase in sales in the Charlotte metro area, trailing only Sacramento, CA and Harrisburg, PA. They expect mortgage rates to rise, going from sub 3% lows to around 3.4% at years end. The new work from home environment fueled by COVID-19 should moderate, thanks to impending vaccines, but is expected to become a permanent part of our future work force. Charlotte is positioned to benefit from the “new” reality, drawing home buyers from the larger metro areas on the East Coast like New York City, Boston, and even Washington, DC.

Our team had a great real estate year as we helped people buy and sell across the city. We also added another experienced realtor to the team this fall! Robbie Horne joined the group and we are thrilled to have her.

Wherever we end up in the new year ahead, Wood-Williams Realty can help. We live and breathe the Charlotte market, have some great listings coming up, and have clients searching for just the right home. So if you are thinking of selling your home or looking to buy one, please give us a call.

Cheers and Happy New Year!

The Early Spring Market is Hot!

Image result for myers park charlottePunxsutawney Phil called for an early spring and the Charlotte housing market was already one step ahead of him. The market is moving and doesn’t show signs of slowing down. Dr. Lawrence Yum, Chief Economist at The National Association of Realtors, recently visited the Queen City and agrees, “You are in a very good Market”! 

Charlotte is one of 10 markets in the country that will outperform the national average for home appreciation in the next five years. And, according to Yum, Charlotte has seen twice the job growth than the national average over the past 20 years.  Not only that, but weekly wage growth has grown by 33% in the last dozen years. That’s a recipe for a strong market! Yum also expects optimism in the stock market thanks to the recent Canada-Mexico Trade agreement and fading discussion about a 2020 recession.

Charlotte’s home market is not without its challenges. In December inventory dropped to 1.7 months, historically low (three months is considered a healthy market), and Millennials continue to put off home ownership as they tackle college debt and postpone marriage. ………And then there are those ugly unresolved national issues including divided government, deficit spending, and affordable housing hanging over housing.

But all problems aside, Dr. Yum expects us to see the return of the Millennials and for Charlotte to outperform the national averages by 5%. He is forecasting improvement in real estate four out of the next five years. Exciting times and welcome news for home Sellers! And, the perfect time to give us a call.  Let’s find a new home this spring!

January 2020 Market Updates

2020 has started with a bang! According to The Charlotte Realtor Association home sales in December surged 17.2% year over year. It looks like the spring market has started early.

For the year, 50,854 properties sold in the Charlotte Region (12 counties in NC and 4 in South Carolina), up 5.9% in 2019. Additionally, pending sales increased 8.9%, implying continued momentum.

  • List price to sales price finished 2019 at 96.7%.
  • The average price of a home increased 5.9% to $303,722, while median sales price, rose 7.1% to $255,000.
  • List to close was unchanged at 93 days, while days on market averaged 43 days in 2019.

The weather is unseasonably warm. The market is hot. It’s a great time to call us!

November 2019 Market Updates

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.

Fall Market Update

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:

Neighborhood Active Properties Under Contract Closed/Sold Average Price Cost Per Sq Ft
 Myers Park  48  24  47  $1,163,030  340.81
 Cotswold  32  13  36  $709,328  $254.74
 Madison Park  20  13  34  $386,331  $226.95
 Eastover  19  12  10  $1,436,194  $321.60
 Dilworth  14  14  20  $835,883  $312.52
 Quail Hollow  11  3  $1,151,000  $233.37
 Providence Park  8  1  5  $882,000  $280.77
 Sharon Hills  5  2  6  $692,583  $218.04

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!

 

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.

Wood Williams Realty Is Growing

Welcome to the NEW Wood-Williams Realty website. We made it simpler and more interactive.  The new site will show off your listings and help you get to know us. It will also help you search the market and alert you immediately when a new property is listed that meets your needs. Please check it out and let us know what you think!

Not only are we introducing a new website, but we would like to introduce a new group of agents. We are very excited to announce that Renee Cerwin, Jill Kitamura, Morgan Rooney, and Arline Manning Wilson have joined our company. It should be a fun and exciting 2018!

Most of you are tuned in to the fact that The Charlotte Metro region is experiencing tight inventory and high demand. March 2018 was no exception. Average sales prices escalated 4.6% from March 2017, median sales prices increased 7.1 %, and average list prices increased 6%. Sellers are getting 97.2% of asking price, and number of listings/inventory continues to decline, down 23.5 % from March 2017. It’s a good time to have an agent from Wood-Williams Realty on your team. Call us!

Ann Wood Holladay – 704-617-7678
Scot Williams – 704-953-8256
Renee Cerwin – 704-502-5307
Jill Kitamura – 704-701-1457
Morgan Rooney – 704-560-0450
Arline Manning Wilson – 704-619-2825

The State of the Market

Folks it’s time to buy again. After a couple of years of declining values, Charlotte’s housing market is poised to rebound. “What?” Has the state of Charlotte’s housing gotten you totally confused? Have you been hearing war stories about declining prices? You are not alone. It has been a long and messy road. Politicians have no clue what to do other than to blame each other and “Bank greed”, plan the demise of Fannie Mae and Freddie Mac, and argue over the fate of the mortgage interest deduction. Even Robert Schiller and Karl Case, the creators of the Case Shiller indices are offering contrasting views. Shiller thinks we have a chance for an additional double digit drop in housing prices, while Karl Case is arguing that the lack of home building is reeving an engine that makes him very optimistic about the future of the economy.
From Charlotte MLS, March 2011 was essentially flat verses March 2010 at 1903 homes sold. Compared to 1900 in March 2010. The average closing price was down 1.6%, March to March; and 76% of homes sold in March 2011 were priced under $250,000. 54.2 percent of listed homes closed in 121+ days. On a little more positive note, in areas 4, 5, 6, and 99 a total of 323 homes sold in March totaling $97,231,735.
From the National Association of Realtors, existing home sales are up 3.7% in March over February marking six consecutive monthly rises in existing home sales.
 
Here is my take:
Finally Charlotte is experiencing job growth. We continue to have positive net migration to the area and we can believe that the banks will survive. Charlotte has gotten the message that it needs some new corporate heroes- enter Duke Energy, Shaw industries, and Electrolux among others. It is cheaper to own than rent. Mortgage rates are starting to move up off a historically low base, and most importantly what looked like a glut of housing a couple of years ago will very shortly look like a shortage of housing.

  • Unemployment is showing signs of abating. Unemployment in the Charlotte Metro area dropped to 10.7% in February from 11.2% in January according to the NC Employment Security Commission. In Mecklenburg County unemployment in February was 10.2%. North Carolina’s rate dropped to 9.7% in February down from 9.8% in January and 11.4% in February of last year.
  • According to the latest census numbers since 2000 the population in the Charlotte Metro area has grown 32.1%. Additionally Moody’s Analytics published in July 2010 show the Charlotte Metro Statistical Region growing at a rate of more than 2% per year thru 2014.
  • There are now 2.3 trillion in bank assets based in Charlotte, 2nd only to New York City. Welcome US Bank, Ally Bank and Wells Fargo.
  • Duke Energy, with its recent acquisition of Progress Energy is now the largest utility in the country, and maybe more importantly their management group lead by Jim Rogers has taken the lead in the discussion and development of alternative energy. The Shaw Group, Inc., the Louisiana based company that moved its power group here a couple of years ago just announced that it is looking for up to 350,000 square feet to consolidate and expand its presence in Center City Charlotte. Combined with Piedmont Natural Gas, SPX and Siemens Energy Service Division Charlotte is emerging as a national energy hub.
  • There is arguably a new “affordability” in home ownership. According to the National Association of Realtors March housing affordability index on a medium priced home is 13% of gross household income. The lowest % since they started keeping records in 1970. Additionally from a new report by Deutsche Bank that measures affordability in two ways- as a percentage of income and the cost of owning verses renting- it can be argued that the foundation has been laid for “dramatic” recovery. Deutsche bank analysis finds that home owners are paying 9.8% of their income in after-tax mortgage, tax, and insurance down from 17.2 % in 2007. This is the lowest number in their data base going back to 1999. The second measure finds that in 28 out of 54 major markets, it’s cheaper to own than it is to rent the same house, thanks to fairly dramatic decreases in home prices in many cases up to 30% (much of our market would qualify) and continued low interest rates. These factors may not move the Charlotte market tomorrow and as it moves it is likely to be uneven, but they will have a positive effect soon.
  • The Catalyst apartment tower just sold for a record price $103,300,000 or approximately $223,500 per apartment. Wasn’t that 462 unsold, center city condominiums that were going to be a drag on the condo sales market? There has been almost no new construction in Charlotte in the last couple of years, with good reason from foreclosures and empty inventory to bank re-capitalization, but when the market starts to come back it will take a good three years to refill the new construction pipeline. Again from the Deutsche Bank Metrostudy report that covers 2/3 of US markets, new construction inventory stands at less than 23% of the 2006 levels.
  • The stock market has recovered much of its 2008 losses- half of the wealth effect is back in place.

Nationally according to the National association of Realtor’s Index pending home sales in March are up 5.1% and up 10% in the South. These figures are off of a weak base, but they are headed up. We are out there every day and can feel the change. As per Jarvis Slade Christie’s managing director of the Americas, “It’s the new financial psychology, we’ve had two years of hesitation, the sellers are realistic, the buyers confident and cautious, but Americans are starting to feel better.” There is more cleaning up to do. In February, Case Schiller Home Price Index of the 20 largest metro areas, reports Charlotte Metro home prices down (1.2%) from January, and down (5%) since February 2010 with a price index of 110.21.
Case Shiller home price Index
Selected Metro Areas                  Feb 11’               change from Jan              change from 2010
Charlotte                                        110.21                        (1.2%)                                   (5.0%)
Atlanta                                            99.45                          (.5%)                                   (5.8%)
Miami                                            138.44                         (2%)                                     (6.2%)
New York                                      165.19                          (.5%)                                    (3.1%)
Washington                                  181.33                          (.1%)                                     +2.7
Composite                                    139.27                          (1.1%)                                   (3.3%)
The indexes have a base value of 100 in January 2000; so a current index of 110 equals a 10% appreciation since January 2000 for a typical home in the metro area.
The Charlotte market has become price driven, but the list of examples of “right priced” successes is growing rapidly. There are Buyers out there looking for value priced superior product. Condominiums are selling in Dilworth, Southend, and Center City in volume when priced 30% below their original new construction levels. By mid-April we were seeing multiple offers on houses in Myers Park and Eastover priced at levels 30% off peak. These new prices will get woven into the market and become the comparable standards for appraisals. Then demand can return in volume. Once that happens there should be a shift in demand stress forcing rising prices.
Here is a neighborhood summary for 2011 YTD
Market Activity by MLS Area/ Month    Single Family and Condominiums/ Townhomes

# Active Listings Avg. Listing Price # New Listings Avg. Listing Price # Sold Listings Avg. Selling Price % of List
Area 4/1 Southeast Mecklenburg including Eastover
Jan-11 201 $697,450 32 $391,063 10 $333,130 93
Feb-11 204 $680,900 32 $614,997 9 $497,956 92
Mar-11 220 $688,900 38 $559,784 15 $563,563 94.4
Apr-11 233 $558,904 44 $471,166 11 $452,591 94
Area 4/2 including Cotswold
Jan-11 214 $330,869 38 $349,011 11 $375,955 90
Feb-11 208 $339,438 33 $396,967 8 $227,019 94.5
Mar-11 233 $341,519 52 $289,810 14 $389,261 91
Apr-11 253 $326,694 51 $320,775 13 $290,608 93.5
Area 5/1 including Myers Park
Jan-11 376 $574,781 56 $1,007,200 18 $564,259 89
Feb-11 376 $565,617 48 $717,450 12 $689,242 85
Mar-11 429 $578,922 90 $946,650 28 $489,127 90
Apr-11 439 $594,325 69 $632,641 21 $548,607 94
Area 5/2 including Foxcroft
Jan-11 161 $614,754 17 $449,394 2 $412,500 93
Feb-11 168 $619,128 19 $568,737 8 $439,313 96
Mar-11 186 $600,210 37 $392,643 12 $541,742 86
Apr-11 189 $656,598 35 $756,500 12 $565,433 87.5
Area 6/1 including Dilworth & Southend
Jan-11 299 $262,071 56 $280,317 19 $251,033 94
Feb-11 306 $268,145 55 $316,512 17 $182,457 94
Mar-11 338 $274,197 73 $282,954 35 $239,932 93
Apr-11 323 $281,966 61 $297,692 20 $198,955 96.5
Area 99 Center City Charlotte
First Ward
Jan-11 36 $223,659 3 $104,732 2 $183,500 91
Feb-11 32 $237,809 3 $260,400 3 $181,800 98
Mar-11 32 $214,650 7 $149,514 4 $219,000 89
Apr-11 31 $217,267 8 $224,549 1 $171,050 1.01
Second Ward
Jan-11 20 $837,355 2 $579,500 1 $435,000 1
Feb-11 20 $838,365 2 $1,127,500 1 $460,000 100
Mar-11 19 $838,068 0 2 $337,500 99.5
Apr-11 16 $752,150 0 2 $774,000 95
Third Ward
Jan-11 58 $339,053 8 $264,961 2 $203,000 1
Feb-11 60 $327,345 8 $249,099 4 $206,625 91
Mar-11 63 $326,719 12 $279,725 2 $304,500 81
Apr-11 59 $286,412 8 $262,975 5 $197,240 90
Fourth Ward
Jan-11 118 $316,171 15 $279,607 5 $251,980 94
Feb-11 122 $311,202 20 $257,230 2 $181,000 98
Mar-11 143 $309,813 35 $305,440 16 $290,613 97
Apr-11 120 $318,525 17 $375,459 4 $194,950 97.5
# Active Listings Avg. Listing Price # New Listings Avg. Listing Price # Sold Listings Avg. Selling Price % of List
Jan-11 201 $697,450 32 $391,063 10 $333,130 93
Feb-11 204 $680,900 32 $614,997 9 $497,956 92
Mar-11 220 $688,900 38 $559,784 15 $563,563 94.4
Apr-11 233 $558,904 44 $471,166 11 $452,591 94


“Based on information from the Carolina Multiple Listing Services, Inc. for the period Jan. 2011 thru April 2011 Areas 4/1, 4/2, 5/1, 5/2, 6/1 and 99.”

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