Charlotte Market Forecast: It’s a Seller’s Market, but is Fall 2017 Really the Time to Buy?

They are still calling it a seller’s market in Charlotte, and with good reason. But with experts saying that the market is not in a bubble and prices are predicted to continue increasing steadily through early 2018,True Homes has found that now might really be the best time to purchase a new True home and build some immediate equity over the coming months. Here’s why:

Is this just a market bubble? Experts don’t think so.

It’s been almost 10 years since the seemingly unstoppable Charlotte new home market experienced the fall that sent home values plummeting and left thousands unfortunately owing more than their homes were worth. Charlotte’s real estate market has clearly rebounded in the last few years with a record number of homes selling for incredible prices in 2016. In fact, the median sales price for new homes in Charlotte hit a new high of $185,000 in 2016, when over 42,000 homes were sold in the Charlotte-Concord-Gastonia MSA. That’s the highest sales volume since 2007. And today Zillow has confirmed that the prices for new homes for sale in Charlotte are hot.

According to Zillow, the current median home value in Charlotte is $187,100, which means Charlotte new home market values have gone up 9.0% over the past year. What’s more important is that Zillow predicts they will rise 4.2% within the next year, indicating that this isn’t a bubble but part of steadily increasing prices through 2018. Diving deeper into Zillow’s numbers we’ll find that the median list price per square foot in Charlotte is $133, which happens to be higher than the Charlotte Metro average of $122. Zillow also found that the median price of homes currently listed in Charlotte is $275,000 and that the median rent price in Charlotte is $1,400, which is lower than the Charlotte Metro median of $1,450. All of these numbers point to the expert prediction of prices that continue to rise in the Charlotte new home market.

In fact, judging by the foreclosure rate in Charlotte and the number of area homeowners who owe more than their house is worth, the Charlotte new home market value isn’t fragile at all. The foreclosure rate in Charlotte has fallen steadily since 2012, and in the fourth quarter of 2016, 7.6 percent of homeowners were seriously underwater, down from a staggering 17 percent in early 2013. Both the foreclosure and underwater rates are in line with what analysts consider normal for a healthy Charlotte new home market.

Why you should buy a new home in the current Charlotte real estate market

Despite all of the activity, new homes in Charlotte are still affordable. Even though the prices of new homes for sale in Charlotte are at a new peak, the $185,000 median sales price in the Charlotte metro region is still affordable compared to other markets around the country. For example, buying a new True home in Mecklenburg County requires an average mortgage payment that is approximately 25 percent of the average local wage, compared to a national average of 34 percent. Furthermore, homeowners in the Charlotte new home market can expect to see above-average appreciation continue thanks to the shortage of available new homes.

Don’t miss your opportunity to potentially create immediate equity thanks to the rising values in the Charlotte new home market. Contact True Homes to see which of our many communities and new homes for sale in Charlotte would be right for you.

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