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'Buyer fatigue' may help cool Charlotte's red hot housing market

Buyers fed up with losing bidding wars are now opting to just sit on the sidelines and wait it out. Charlotte's housing prices are going down as a result.

CHARLOTTE, N.C. — Charlotte's housing market can be summed up in one word this summer: crazy!

It's crazy good for sellers who were getting bidding wars that went way over the asking price, and it's crazy bad for buyers, who spent more than they intended. But the frenzy may be ending soon, as the fall and winter housing market forecast may include something called "buyer fatigue."

If you have to move, it's nice to look and maybe think about it after you've seen a property or two. Not now, though, as people have been buying houses sight unseen and paying more than the seller wants. New research shows that buyers are getting fed up with this and they're backing off those high-pressure deals. 

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In some U.S. cities, 40% of the available houses on the market are selling for more than asking price, according to Zillow. Charlotte is one of the hottest markets thanks to its good weather and great job opportunities for tech workers and more. 

RELATED: Charlotte could soon spend $23 million on new affordable housing projects

"Bidding wars occur when there are more buyers than there are options," David Hoffman of David Hoffman Realty, said. 

Even Hoffman, a veteran real estate agent and broker, is amazed at the market in the last eight months. But he believes the market is showing signs of slowing down. 

"We are starting to see supply pick up just ever so slightly," Hoffman said. "We are also starting to see more and more buyers get buyer fatigue. You can only lose so many bidding wars before you decide to hang tight."

WCNC Charlotte is always asking "where's the money?" If you need help, reach out to the Defenders team by emailing money@wcnc.com.

So, buyers who want to move could be fading out of the picture for a moment compared to those who have to move, like those in a job transfer. When the housing market turns, experts say it tends to turn quickly. 

"I am starting to see fewer bidding wars, fewer buyers where there are bidding wars, and a few extra days on the market," Hoffman said. "Just a little less excitement than the summer and spring that just passed."

Experts don't believe we're in a housing bubble, either. The fundamentals of the market and solid, and nationally, Zillow says that in most cases, the final price is within 10% of asking. 

"Looking ahead a year, if we are seeing home prices grow at about 20%, you can probably expect them to grow by 14%," Cory Hopkins, Zillow's senior manager for economic research, said. "Not a huge slowdown but it should give buyers and sellers a little more breathing room."

If you want to sell, sell now. And if you can afford to buy, consider waiting. Why? Take a $400,000 home that might be for sale. Zillow's estimate of a 6% cooldown represents $24,000 profit or savings to someone in the deal. 

So what city is getting the most money over asking price? Rochester, New York, at 49.6%, followed by San Francisco. 

Contact Bill McGinty at bmcginty@wcnc.com and follow him on Facebook.

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