Demand will continue to drive up house prices in Charlotte in 2022

Photo: Brianna Crane / Axios Charlotte

Homes in Charlotte won’t continue to get more expensive until 2022, according to 28 local realtors we asked in a recent survey.

Inventory: The median price of a home in Charlotte is $ 409,327, up from $ 348,739 a year ago, according to the latest Canopy news. That’s a price increase of 17.4%.

  • Zillow ranked Charlotte as the nation’s fifth hottest market for 2022.
  • And PropertyShark ranked Charlotte as the cheapest city to live in with the best weather. Compared to other large cities, Charlotte has the most affordable housing and the mildest climate, according to Forbes.

What they say : Most survey respondents expect home values ​​to rise simply because there isn’t enough supply to meet booming demand.

  • Kimberly Antolini of Corcoran HM Properties said one of its recent listings had 52 hits and 19 offers. Only one person can win the home, which leaves 51 interested buyers still on the hunt, she explained.
  • But if home prices continue to rise, many predict the rise will be slower from 2021, in part because mortgage rates are also rising.

“As Charlotte continues her ascent as a destination of choice for people, the imbalance between supply and demand will persist, ”said Daniel Cottingham of Cottingham Chalk. “Interest rates will cool demand to some extent, but not enough to balance the market.”

  • Cottingham predicts that tight stocks will reign, which will continue to fuel bidding wars and price appreciation.

However, sellers must be prepared for more demanding buyers.

“In 2022, buyers will be a little more selective, So it’s important to really prepare your home for the market and an initial overvaluation of your home could actually hurt your bottom line, ”said Jeff Clay, owner of JClay Realty Group.

  • Stacey Stolar at Corcoran HM Properties shared that because buyers are passing on overpriced homes, we might start to see homes stay on the market longer than we’re used to.
  • These changes might not have a big impact on macro trends, but will provide pockets of relief for tired house hunters.

Yes, but: The market will always favor sellers and buyers should anticipate challenges. “It is possible to buy a house in this market, you just have to prepare yourself with the game face to face,” explained one respondent.

Driving the news: Respondents say demand here is the # 1 reason home prices are unlikely to fall anytime soon. Julie coffey at Savvy + Co. says that the title for real estate in Charlotte in 2022 is “Scarcity drives demand.”

  • “I think we can cap a bit this year and the upward price growth might slow down a bit due to increased inventory in the market, but I think demand remains very strong, ”said Dickens Mitchener’s Tim Hansley. “I don’t think the record numbers we saw in 2021 will go anywhere in the next 2-3 years.”
  • Hansley predicts sellers who have waited the past two years for fear of not finding their next home will be listed in 2022 so they don’t miss out on the highest prices. If this happens, we will see a slight increase in inventory, but not enough to reverse the market.

Even if the 2022 trends as in 2021 (price increase, low inventory), experts say smaller changes in the market could occur.

  • “Multiple offers and high demand will always be a “thing,” but we won’t think that something is wrong with a house that’s on the market for more than a day, “said Bree Pittman of Keller Williams University Charlotte.

Suzanne cowden with Corcoran HM Properties predicts that some neighborhoods may have already peaked and home values ​​will stabilize in those areas. While some neighborhoods are still gaining popularity and house prices will continue to rise in these areas.

  • For example, large lots in established neighborhoods are prime real estate.
  • Builders can transform an old house into two new houses or into duo style townhouses. Home values ​​in these areas will continue to rise as land and inventory are hard to come by, Cowden explained.

The other side: However, a few respondents believe 2022 will actually be even more hectic than 2021.

  • Peggy peterson from Corcoran HM Properties summed it up with their title for 2022 Charlotte real estate: “And you thought the market was crazy in 2021 ???”

Other trends are emerging include a higher demand for ranch-style homes, a demand for more new construction, and an increased desire for things like outdoor space.

At the end of the line : No one has a crystal ball, but Charlotte real estate experts predict that the 2022 market will remain active and be fueled by strong demand.

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