CHARLOTTE, N.C. — Most residents know Charlotte is a hot housing market, and now, real-estate marketplace company Zillow said the Queen City will be the nation's hottest housing market in 2023 due to both home value growth and growth in owner-occupied households.
The good news moving forward is the housing market is starting to cool, which means there will be less pressure on home buyers to put in an offer way over the asking price.
About a year ago, there were bidding wars on homes and all-cash offers. Experts said the Charlotte housing market will not be experiencing that this year, but with housing in the city in such high demand, it'll stay expensive.
“It’s a city that’s growing, and there’s just a lot of opportunity here,” Jon Widdifield with RE/MAX Executive said.
Housing prices have changed dramatically over the past few years.
According to UNC Charlotte's 2022 State of Housing in Charlotte report, in 2020, the average cost for a home in Charlotte was $273,500. In September 2022, that average cost had risen to $420,000 which is a 53% increase.
Still, Widdifield said when compared to other big cities, Charlotte is on the map.
“As far as a city this size, it’s one of the most affordable in the United States,” Widdifield said.
In 2022, there were aggressive interest rate hikes by the federal reserve to beat back inflation.
“I am super optimistic for the market this year,” Widdifield said.
But for the most part, mortgage rates have been trending down, which means there will be less competition as more properties come on the market.
“I think we’re going to have a lot of homes on the market, which is going to be great, it's going to get us back to a more normal place for buyers and sellers,” Widdifield said.
There's a long way for prices to come down to pre-pandemic levels. Inflation and just general concerns about the economy are other reasons why sellers may have their homes on the market for longer than usual.
Contact Lexi Wilson at lwilson@wcnc.com and follow her on Facebook, Twitter, and Instagram.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.