January 2022 – Market Update

So here we are in 2022 after another crazy year of tight inventory and escalating prices. According to a Charlotte Business Journal article and the Case-Shiller index, annual home-price gains in the Charlotte metro were up over 20% in October. They have been up 20%+ for the fourth month in a row! Charlotte’s results ranked 8Th amongst 20 metro areas in this analysis, so things are crazy everywhere. According to Redfin, home prices reached an all-time high of $361,171 at the end of the year while the number of homes sold fell to a record low thanks to a continuing lack of inventory.

What do these numbers suggest for 2022? Well, it is clear that the housing markets are driven to some degree by location preferences thanks to a willingness of businesses to allow their employees to work remotely during the COVID pandemic. But how permanent will those changes be? I think it may be revealed this year.

Regardless, the Realtor.com forecast for the Charlotte market in 2022 calls for an increase in median home prices of 5.6% and an increase in sales of 9.9% with an eye to the following trends:

  1. Competition by millennials as first- time buyers thru 2025
  2. Mixed affordability
  3. Opportunities created by shifting workplace dynamics
  4. New demand for indoor and outdoor spaces thanks to COVID
  5. And homeowner diversity

Stay tuned – Wood Williams Realty has some fun news to bring you later this month!