Over the past year, housing prices have soared across the country. Much of this change is driven by the pandemic. With more people working from home and spending more time at home, they’re looking to upgrade to homes with more living space and a place for the home office.
Demand for homes in the suburbs, supply shortages, and low mortgage rates are all contributing factors driving the current market. According to the National Association of Realtors, prices have risen in nearly every metro that the association tracks, with 89% of them seeing double digit gains in prices. That holds true in Charlotte, where prices have risen 20.8% year over year.
So what is coming in Q3 and Q4 for Charlotte? Read below to find out.
COVID-19 Drives Big Changes
Prior to the pandemic, real estate in the Charlotte metropolitan area was holding steady. In March of 2020, 3,630 homes sold, which represented a year-over-year increase of 4.9%. By April, however, sales dropped by 22.2%. One of the big factors behind the shortage of sales? Inventory in the Charlotte metropolitan area has dwindled. Between February 2020 and February 2021, inventory of available homes dropped by 64.7% from 6,603 homes to 2,332 homes.
At the same time, an influx of buyers from more expensive areas around the United States has been driving demand. Right now, it’s a seller’s market. Inventory is short, prices are rising, and homes are being snapped up off the market. Right now in Charlotte, the average time on the market is about 30 days from listing to sale.
Forecasts for Q3 and Q4
Since so many of the recent changes in housing markets have been fueled by COVID-19, it’s hard to predict with exact certainty what will happen in the coming months. However, according to Realtor.com, Charlotte is ranked third among the top 10 housing markets positioned for growth in 2021.
This is a city that consistently ranks as one of the best places for long-term real estate investments. So long as mortgage rates remain low, it is expected that homes in the Charlotte metro will continue to be in high demand, and prices will continue to increase. According to Zillow, current forecasts look like home values will rise by 18.1% by the end of May, 2022.
Research from Little Big Homes reflects this same outlook. According to them, there is an 88% chance that housing prices in Charlotte will continue to rise through Q3 2021.
In other words, the Charlotte metro area will continue to remain a seller’s market with low inventory and high demand from potential buyers.
If you’re a homeowner in Charlotte who has been thinking about selling, now is the time to do it. Prices are high and homes are being snapped up, which means you’ll be able to get a better return on your investment. Want to make sure your home sells for the best possible price? Look to Creative Home Stagers. With our help, we can get your house into sale-ready shape so that it makes a splash when it hits the market!