Charlotte, North Carolina, is one of the nation’s hottest housing markets with a rapidly growing population and an influx of new workers looking for somewhere to call home. The city’s population grew by around 50 percent between 2010 and 2020, and another fifth between the pandemic and the present.
Naturally, these growth rates coincide with a rise in housing market activity in the area. Charlotte is in the midst of a boom, thanks to a frenzy of home-buying activity in the city.
In 2023, pundits called for a correction in the city’s booming market in 2024, but it hasn’t come so far. Some suggest the rising prices might last into 2025 and beyond if the positive demographics keep playing a role.
How Hot Is Charlotte’s Market Compared To 2021 And 2022?
Charlotte’s real estate market is hot in 2024, but it’s perhaps not as hot as in the glory days of 2021 and 2022. Prices are rising steadily, but many factors making the market exciting for investors back then have ebbed slightly in recent months.
For example, data shows the population isn’t growing as fast as before. While Charlotte continues to attract new residents, the city’s growth is slowing down slightly, taking some pressure off the existing housing stock.
The government stimulus that supercharged Charlotte’s house price growth is also waning. While fiscal spending remains strong, it is capitalizing the economy at a slower rate (which will affect how much house prices can sell for).
The price action of the median house price in Charlotte suggests more upward momentum could be on the cards. The average asking price for a home was $410,000 in 2022, which fell by $10,000 in July 2023. However, new stimulus in the economy and the end of the stock market drawdown now means people are flush with cash in the city, driving prices higher.
To add to the positive news, cities around Charlotte are also seeing house prices rise. Waxhaw, for instance, is a commuter town serving the city some 25 miles to the south. Prices peaked at $600,000 in 2022 and continued to surge during 2023, reaching an impressive $780,000.
The same is true of the city of Matthews to Charlotte’s southeast. It saw prices rise by over 27 percent between 2022 and 2023, again revealing the high demand among people to live close to the North Carolina capital.
Finally, the city of Waddington between the previous two has also seen its house prices moving considerably. During 2020, the median asking price was $730,277, but this has since risen to $975,000 by 2023, again underscoring the strength of the local market.
Inventory Continues To Fall
On top of these house price trends, we’re also witnessing a fall in inventory – another bullish sign for prices. The fewer units available, the more buyers must bid among themselves to secure the properties they want.
Only a small subsection of Charlotte neighborhoods saw growing inventory during 2023, and the hot economy means that trend is continuing into 2024. New buyers, investors, and those from existing properties leverage bigger deposits and borrow more money to compete in the area.
The fall in inventory in the metro area was 16% last year, far higher than many analysts expected. The number of available homes fell more sharply in other regions, including by up to 50% in some places.
So, What Does This Mean For The Charlotte Housing Market?
These trends suggest the Charlotte housing market is unlikely to crash this year. If anything, the situation appears to be improving. Sellers who hold off now might be able to ask for higher prices later in the year.
It also means sellers can take more liberties. The market isn’t quite as cut-throat or competitive (at least from their perspective), enabling them to make more demands and sell through alternative channels.
For example, Phixer Virtual Home Staging suggests property owners virtually stage their homes instead of going to the effort of doing it in real life. This approach reduces costs and helps to capture the migrant market looking to move to Charlotte.
Property owners can also cut costs elsewhere, such as reducing pre-sale investments in things like bathrooms and kitchen facilities. While these might be nice to have for some buyers, most will have to take what they can get in 2024.
So, in summary, while Charlotte has seen fluctuations in house prices, the city remains an exceptional place to invest in property. There are no signs of things slowing down just yet.
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