The spring real estate season is now in full swing! In today's post, we'll take a look at how the Charlotte area home prices are trending amid this high-demand climate.In February, Charlotte
Charlotte Area Home Price Update
The spring real estate season is now in full swing! In today's post, we'll take a look at how the Charlotte area home prices are trending amid this high-demand climate.
In February, Charlotte home price appreciation accelerated 6.4 percent over the same month in the previous year. This information comes from a new S&P CoreLogic Case-Shiller report that was released last week. For perspective, home price growth had slowed down to below 6 percent in the last two months of 2017 but bounced back to 6 percent by January 2018. Now that we're in what is arguably the busiest season for U.S. real estate, the figures indicate they are keeping up with rising demand.
"With expectations for continued economic growth and further employment gains, the current run of rising prices is likely to continue," said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, in a statement. "Increasing employment supports rising home prices both nationally and locally."
Nationally, home price appreciation was up 6.3 percent for the same time frame. Charlotte was only slightly above that at 6.4 percent, indicating the Queen City housing market is staying on par with the overall pricing trends across the nation. Likewise, both the 10-city and 20-city composites for the report saw higher rate increases at 6.5 percent and 6.8 percent, respectively. Of the 20 markets tracked in the report, half posted an annual price increase higher than Charlotte's.
Charlotte's price gains matched those of Dallas and Phoenix, Ariz., while Seattle posted the highest annual increase of 12.7 percent.
"Competition is fierce, offer windows are short and tensions will inevitably run high for many buyers as the spring shopping season unfolds," said Svenja Gudell, chief economist at Zillow in a statement regarding the Case-Shiller report. She also noted that while there are some signs that the U.S. housing supply levels could rise, referring to three consecutive months of rising existing-home inventory and a 10-year high in construction activity, those factors are not strong enough alone to provide significant relief.
"But buyers in the market now shouldn't hold their breath," Gudell continued. "Even if inventory does begin to recover, it will be rising from incredibly low levels and will likely take years to get back to a 'normal' level."
According to a recent housing activity report from the Charlotte Regional Realtor Association, prices for both sold homes and listings increased March. On average, homes in the area sold for $279,726 (4.5 percent higher, year-over-year), while the listing price rose 6 percent to $346,323. The same report reflected an 11.2 percent decline in area housing inventory, leaving us with a scant 2-month supply of available homes on the market. For reference, a 6-month supply is considered indicative of a balanced market. Anything lower indicates a market where demand outpaces supply. Anything higher indicates a buyer's market where inventory is higher than demand.
Key Takeaways for Buyers:
Competition is fierce. Be prepared to come in with a strong offer -- no low-balling! You'll likely be competing with several other interested buyers, some of whom will offer asking price or perhaps higher. If you're ready to get started on your Charlotte home search, give us a call. We'll be happy to discuss a home buying strategy with you. (704) 419-8644
Preparation is key. Before you begin your serious home search, it's not a bad idea to get pre-approved for a mortgage. This will let the seller know you're serious and have already begun the financing process. Talk to your real estate agent for a few recommendations on mortgage lenders.
Key Takeaways for Sellers:
Now is your time to shine! What are you waiting for? If you're serious about putting your home on the market, this is the prime season. Reach out to us today to discuss a home selling strategy.
If you own a small, starter home, now may be the perfect time to move up. Reports are indicating that the market is in dire need of single-family homes in the lower price tiers. First time buyers are especially eager to find homes that meet their needs and budgets. If you're considering selling your starter and moving up to something bigger and better, let's talk!
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