The Charlotte housing market is in a state of transition, moving away from a seller’s market toward a more balanced landscape. With the first seven months of 2024 behind us, let’s delve into the latest trends shaping the market and what you can expect in the coming months.

How is the Charlotte Housing Market Doing in 2024?

The Charlotte Metropolitan Statistical Area (MSA) encompasses Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, and Union Counties in North Carolina, along with Chester, Lancaster, and York Counties in South Carolina.

Inventory: The Driving Force

The most significant factor influencing the Charlotte housing market in 2024 is the stark increase in inventory. As of July 2024, the months supply of inventory stands at 2.3 months, a significant jump from 1.5 months in July 2023. This surge translates to 6,481 homes available for sale, representing a whopping 52.1% increase compared to the same period last year (Canopy Realtor® Association).

What Does This Mean for Buyers?

• More Choices: The days of limited inventory and fierce competition are fading. Buyers now have more options to choose from, allowing for more time to make informed decisions.
• Negotiating Power: With increased inventory, buyers regain some negotiating power. Sellers are more likely to entertain offers below asking price or consider concessions.

What Does This Mean for Sellers?

• Increased Competition: Sellers need to be prepared for a more competitive environment. Strategically pricing and marketing your home is crucial to stand out.
• Realistic Expectations: While prices are still appreciating, the rate of growth has slowed. Sellers should temper their expectations and be prepared for longer selling times.

Key Charlotte Housing Market Trends

Let’s break down the current trends in more detail:

1. Median Sales Price: Steady Growth, But at a Slower Pace

The median sales price in Charlotte continues to climb, reaching $420,000 in July 2024. This represents a 4.2% increase from July 2023. However, this growth is noticeably slower than the 8.3% increase observed in the year-to-date figures from 2023 to 2024.

Key Takeaway: While prices are still appreciating, the pace has slowed, suggesting a shift towards a more balanced market.

2. Sales Activity: Showing Signs of Stabilization

After a period of decline, sales activity in the Charlotte housing market is demonstrating signs of stabilization.

• Closed Sales: Although down by 3.5% year-to-date, July 2024 saw 3,148 closed sales, a 6.7% increase from July 2023.
• Pending Sales: Pending sales, which indicate future closings, saw an 8.9% increase in July 2024 compared to July 2023.

Key Takeaway: While year-to-date figures reflect a slight dip, the recent uptick in closed and pending sales suggests the market might be finding its equilibrium.

3. New Listings: Fueling Inventory Growth

The increase in inventory can be primarily attributed to the surge in new listings.

• July 2024 saw 4,093 new listings, a significant 20.4% increase compared to July 2023.
• Year-to-date figures also show a robust 14.2% rise in new listings, reaching 27,269.

Key Takeaway: More homeowners are choosing to list their properties, contributing to the wider range of options now available for buyers.

4. Time on Market: Shifting Dynamics

As inventory rises, the average time a property spends on the market is also increasing.

• Days on Market Until Sale: In July 2024, it took an average of 32 days for a property to sell, a 14.3% increase from July 2023.

Key Takeaway: The market is no longer as fast-paced as it once was. Buyers have more time to consider their options, while sellers need to be prepared for potentially longer selling times.

Factors Influencing the Charlotte Housing Market in 2024

Several factors are contributing to the current trends in the Charlotte housing market:

• Interest Rates: While still historically low, interest rate fluctuations impact affordability and influence buyer behavior.
• Economic Growth: Charlotte’s robust economy and job market continue to attract new residents, driving housing demand.
• Supply Chain Issues: Ongoing supply chain disruptions impact construction costs and timelines, contributing to the housing shortage.
• Millennial Demand: As millennials enter their prime home-buying years, their demand for housing remains a significant factor.

Charlotte Real Estate Market Forecast 2024 and Beyond

So, what does the future hold for the Charlotte housing market?

While predicting the future of real estate is complex, most experts anticipate continued but moderate growth.

• Inventory: Inventory is expected to remain elevated compared to recent years, offering more choices for buyers.
• Price Growth: Price appreciation is likely to continue, but at a slower, more sustainable pace. Double-digit price growth is unlikely.
• Balanced Market: The Charlotte housing market is expected to trend towards a more balanced environment, benefiting both buyers and sellers.

Navigating the Charlotte Housing Market in 2024

For Buyers:

• Get Pre-Approved: Knowing your budget and securing pre-approval from a lender gives you a competitive edge.
• Work with a Realtor: An experienced Realtor® can provide valuable insights and guide you through the process.
• Be Patient and Strategic: Don’t rush into a decision. Take your time, compare properties, and be strategic with your offer.

For Sellers:

• Price Competitively: Work with your Realtor® to determine the right price for your home based on current market conditions.
• Enhance Curb Appeal: Make a strong first impression by enhancing your home’s curb appeal and highlighting its best features.
• Be Flexible: Be prepared to negotiate with buyers and consider offering concessions to close the deal.

How is the Charlotte Real Estate Market for Investment?

Charlotte is a bustling city in North Carolina, known for its thriving economy, rich culture, and abundance of outdoor recreational activities. With a growing population and a strong job market, the real estate market in Charlotte is poised for steady growth in the coming years. The average home value in the Charlotte-Concord-Gastonia area is $386,254. Additionally, the 1-year market forecast predicts a 1.7% increase, making it a promising market for investors (as of July 31, 2024).

One of the top reasons to invest in Charlotte’s real estate market is the city’s strong job market. With a diverse range of industries and companies, including the headquarters of Bank of America and Duke Energy, Charlotte has a low unemployment rate and a growing population. This combination of factors is likely to continue to drive demand for housing in the city.

Another reason to consider investing in Charlotte’s real estate is the city’s attractive rental market. With a growing number of young professionals and families moving to the area, there is a strong demand for rental properties.  The rental market in Charlotte is also experiencing significant growth and demand. With the influx of new residents and a strong job market, the demand for rental properties has been steadily increasing.

This has led to an increase in rental rates. One of the main factors contributing to the growth of Charlotte’s rental market is the high demand for housing in the city’s urban core. Many young professionals and families are seeking to live close to the city’s vibrant downtown area, and are willing to pay a premium for the convenience and amenities this area offers. This has led to a surge in new apartment developments and mixed-use properties being built in and around downtown Charlotte.

Another contributing factor to the growth of Charlotte’s rental market is the city’s strong job market. With the presence of major employers like Bank of America, Wells Fargo, and Lowe’s, many people are relocating to Charlotte for work and are looking for rental properties to live in while they establish themselves in the area.

Investing in rental properties in Charlotte can be a lucrative opportunity for real estate investors. With the city’s strong job market and population growth, there is a consistent demand for rental properties. Additionally, with the high demand for urban housing, investing in properties in or near downtown Charlotte can provide a steady stream of rental income and the potential for long-term appreciation.

Charlotte also offers a relatively affordable real estate market compared to other major cities in the United States. This makes it an attractive option for investors looking to enter the market or expand their portfolio.

Finally, Charlotte has a strong and growing economy, which bodes well for the future of the real estate market. As the city continues to attract new businesses and residents, the demand for housing is likely to increase, creating opportunities for investors to capitalize on this growth.

In summary, Charlotte’s real estate market offers investors a promising opportunity for long-term growth and income. With a strong job market, attractive rental market, affordable prices, and a growing economy, there are many reasons to consider investing in Charlotte’s real estate market.