If you are a real estate entrepreneur, you want to do business in a place where you can get the highest returns. According to Zillow, the leading real estate website in America, 2021 was a busy year for realtors who saw home selling and buying rise to a record high.
However, growth was not uniform across the board. Some cities showed more growth than others, with the trend expected to continue into 2022.
If you are looking to make profits in your real estate business, understanding the market can help you make the right real estate investment in the right place.
Two North Carolina Cities Make the Top Five
According to predictions by Zillow, Tampa is the best place to invest in real estate in 2022 if all factors remain constant. There is also good news for realtors in Charlotte. Zillow predictions show that Charlotte ranks fifth, two positions below Raleigh, another N.C. city, in the list of hottest real estate markets in America this year.
Going by 2021 market trends, many homes aren’t staying on the market long without finding a buyer.
That means any real estate investor who wants to cash on the boom must have a reliable funding partner. And not just any kind of funding but quick financing to help cash on the time-sensitive deals.
For time-sensitive deals, your best option for funding may not be conventional loans or investment mortgages. Instead, you need hard money lenders that offer quick loans with less restriction.\
If you are unsure where to find a local hard money lender, this resource on hard money loans in Charlotte can help you get the best real estate financing.
Factors Accelerating the Boom
According to Zillow, this boom in the real estate industry is not accidental. It has been accelerated by various factors, including the all-time low mortgage rates and demographic shifts between millennials looking to buy a home and baby boomers downsizing as they retire.
Additionally, there has existed a low inventory of available housing after years of underbuilding, and it was only a matter of time for demand to exceed supply. It is highly unlikely that these factors will change in a year, so investing in Charlotte is still a good idea.
Surprisingly the markets are way cooler in bigger cities. According to last year’s performances, New York and Chicago had some of the slowest markets, with experts pointing to the lack of new job opportunities in the cities and fewer shifts in demographics as the reason for the cool markets.
When Is the Charlotte Market Expected to Cool Off?
According to Canopy Realtor Association’s president Lee Allen, there is no sign of the Charlotte real estate industry cooling-off whatsoever, at least not in the foreseeable future.
The only way a cool-off could happen is if many homeowners list their houses for sale or new home constructions come up until the market is saturated, which is unlikely to happen all at once.
According to Allen, it will take some time for the market to reach equilibrium, meaning realtors will have a good time for longer. While everything seems rosy for the realtor, the same can’t be said for low-income earners interested in accessing affordable housing.
According to the Urban Land Institute report, the higher prices are putting a strain on new households and young buyers who may not have enough to pay for down payments required for home financing.
According to the institute, the people of color stand to be affected the most by the lack of affordable housing, exacerbating the already wide racial ownership gap.