CHARLOTTE, N.C. — From fluctuating interest rates and low inventory, 2022 was a wild ride for the housing market in Charlotte.
So, what trends will the new year bring?
While it's been a rough year for those looking to buy a home, recently mortgage rates have been trending down.
“As mortgage rates drop, we will begin to see more people re-entering the market," Lawrence Yun, chief economist for the National Association of Realtors, said.
Yun said affordability will still be a challenge in 2023, but there will be less competition as more properties come onto the market.
“What happened in 2020, 2021, multiple offers, situations like that will not repeat," Yun said.
When it comes to Charlotte, it's no secret there's a high demand for housing and not enough of it.
“Housing stock is low, basically no matter what, we’re not going to change the housing stock shortage for several years," John Connaughton, professor of financial economics at UNC Charlotte, said. "So, that will keep pressure on prices of single-family homes."
According to Realtor.com, they anticipate a slight annual decline of 0.3% in home sales next year in Charlotte, but home prices are forecast to increase 5.5% over the year.
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Also, rents are likely to increase as more people move to the Charlotte area.
“The rents have been rising because we are still in a job-creating economy,” Yun said.
While some people want to know if 2023 will be the year to rent or buy, experts say it's really what works best for you, and if you do buy -- stay within budget.
Yun said the year won't be a buyer's or seller's market as it will be more balanced.