Punxsutawney 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!
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!
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|
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!
914 Cherokee Road Charlotte, North Carolina
2 Beds 2 Baths 1,803 SqFt
346 Country Club Heights Rd Tryon, NORTH CAROLINA
3 Beds 4 Baths 3,000 SqFt 4 Acres
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.
According to a recent report in Zillow, Charlotte residential real estate prices in September were among the fastest growing metro markets in the US, behind only Seattle, San Jose, and Vegas, at 9%. Zillow argues that these increases are not related to a bubble but due to shrinking inventory, down 12.3%, and that these increases will continue in 2018 but at a more modest 4%. The CoreLogic Case Shiller index also showed big increases in September up 6.2% year to year. Throw in a business friendly Fed Chair who is expected to follow Janet Yellen’s script, Consumer Confidence at a 17 year high, and new tax policy; 2018 is setting up to be another good year in real estate!
January will also mean exciting changes at Scot Williams Realty as we re-market the company to more accurately reflect my partnership with Ann Wood Holladay. Stay tuned!
Look for exciting news at Scot Williams Realty, LLC. Scot Williams and Ann Holladay have partnered, together bringing 50 years of experience to Charlotte’s continuously growing market!
Ann has long been one of Charlotte’s most productive and trusted home resale Brokers. Adding her experience to Scot Williams’ resale, condo, and development experience- WOW what a duo. Together, they expect great things in what looks to be a fantastic 2018 market. This quarter as we finalize name change plans that more accurately reflect our new partnership; expect some re-branding, work on an updated, more mobile friendly website, and quite possibly some new faces!
August/ September 2017 brought a slight cooling to our local real estate markets, typical activity for this time of year, as family focus changed from vacationing to back to school. From key metrics reporting provided by Charlotte Regional Realtor* Association:
Closings were down 3.8% in August and down 3.9% in September year over year, but they are still up 6.1% year over year in 2017. Median sales prices were up 9.2% and inventory was down -17.5%. With inventory down, interest rates and tax policy unchanged, Buyers and Sellers can expect more price acceleration in 2018.
From the Charlotte Regional Realtor* Association:
August 17′ vs August 16′ Sept. 2017 YTD change
New Listings +6.0% +3.3% +4.9%
Pending Sales +15.5% +16.4% +6.8%
Closed Sales -3.8% -3.9% +6.1%
Average Sales Price +1% +6.1% +6.0%
Median sales Price +5% +9.2% +10%
Inventory of Homes -18.6% -17.5%
The Case-Shiller Home Price Index showed similar results nationwide in August. The National Price Index increased 5.8% nationwide, and 6.4% over the previous 12 month period in the Charlotte Census Division.
Let’s take a minute and examine Charlotte, the 7th largest real estate market in the country. Employment and wages are improving, creating wealth and with it opportunities in residential real estate. North Carolina’s jobless rate was down to 4.7% in April, slightly higher than the national average but improving. From the looks of things unless something unpredictable is generated out of Washington, that trend should continue:
Based on information provided by Carolinas Multiple Listing Service and Barclays Home Survey for April 2017, as we get well into the spring market, Charlotte continues to show the effects of escalating prices and shrinking inventory.
New Listings are up 5.1% for the year, but are down 20% year over year for April. Couple that with an 8% increase in closed sales year to date and you have the makings of an expensive Seller’s market. Median prices were up 11.9% in April and 12% for 2017. In Mecklenburg County in April, average list prices increased to $363,236 from $346,331 in 2016; average sales price increased 11% to $308,109, and days on market dropped to 31 days from 43 days.
Our read here is the move up buyer continues to be strong and a leading market force, but even with high rents, the first time buyer is still mostly missing in action. But it is all good news for sellers!
So for you homeowners thinking about selling and looking at a lifestyle change, call us (Scot 704/953-8256 and Ann 704/617-7678). It is a great time to sell!
2017 ushers in both a new U.S. president from another political party and one with a lifetime of work in real estate, leaving few believing it will be business as usual. His plans for both deregulation and promised spending on infrastructure, should provide intrigue in 2017. Interest rates were expected to rise in 2016 and they did not, but with the recent bump from the Federal Reserve mortgage rates should increase, but in small jumps that should keep rates below 5%. ( Fannie Mae and Charlotte Regional Realtor Association)
So what does this mean for Charlotte in 2017? After a year where units of closed sales were up 8.4%, where the one year change in price for single family homes was up 7.9%, and for condos and townhomes 8.7% , where Sellers received 96.2 % of their original list price, and where months of supply in Mecklenburg County shrank to 1.5; if January’s activity locally is any indication we are looking at more of the same. Sales are boiling.
Broadly questions remain. How does development impact affordability? 2. Are the millennials going to skip their entry level buy and wait until they start a family or pay off student debt before buying their first home? 3. Will baby boomers continue to make up 1/3 of the market in 2017? Fasten your seat belts!
It has been a strong year for what I’m coining luxury plus condos in Charlotte’s Myers Park and Eastover neighborhoods. Fueled by strong existing home sales, prospects have found it an advantageous time to sell their single family properties and make the transition into condos and town homes. We are tracking 5o of these properties that were either sold and closed in the last 12 months or are under contract (mostly new construction with CO’s).
What do these 50 condos and town houses look like? The average luxury plus home is 3 bedrooms and 3 baths; is 2873 square feet, and sold for $391.77 per foot. With an average price of $1,125,500 it appears that the primary buyer motivation is a change in life style, instead of a financial downsize. Most of the buyers are coming from the neighborhood, buying new or newer properties that offer limited maintenance in an accessible location, with room for family and friends. There are nine more new properties listed for sale in MLS, so expect the trend to continue into 2017.
In other business, clients top design trends according to real estate professionals as listed in BUILDER (11/14/16) were:
- Open layouts
- Neutral color schemes
- Multigenerational floor plans
- First-floor master suites
- No dining rooms
- White kitchens
- Extra-large garages
- Big closets
- Finished basements with 9′ ceilings
- Barn sliding doors
Ps. Your comments are welcomed.