Real Estate Blog

Top Asked Real Estate Questions

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Home Sales in the Greater Charlotte area are Headed for Pre-Pandemic Numbers 

 

Our local Charlotte housing market is starting to reflect that of 2019. Why is that worth celebrating? The data from 2019 gives us a baseline of what’s “normal” for Charlotte area home sales. 

 

The real estate market was taken on a wild ride through the pandemic, starting with the near halt of home sales in March 2020 with the COVID-19 lockdown. Followed by 2021’s soaring home sales, thanks to artificially low interest rates and virtual work options, which allowed buyers to move to more affordable cities, like Charlotte.

 

Data from 2022’s Housing Market points to a more balanced market in 2023, no doubt indicated by Zillow awarding Charlotte “2023’s Hottest Housing Market”.

 

While there was a 15.3% year-over-year decline of home sales last year – with 50,286 home sales according to the local Canopy MLS – the data actually points to a shift to a healthier market. PLUS, the more regulated pace of sales has helped build inventory to give home buyers a plethora of options in the Charlotte Spring Housing Market.

 

While there’s a desire to go back to the 2021 housing market of high prices, bidding wars, and nearly non-existent days-on-market, the reality is the 2021 Housing Market was just as much of an anomaly as the time.

 

What about Interest Rates? Despite mortgage rates being historically low, increased rates may make affordability challenging for some prospective home buyers. However, with a plethora of financing options, many home buyers are finding the home of their dreams amongst the increased inventory. 

 

Zoom out: Warning signs of a recession based on slowed home sales have turned into data that points toward a healthier market for both buyers and sellers in 2023. The data and experts agree, the housing market has the ability to help the Charlotte economy rebound in a big way. Real estate is one of the most powerful investments you can make, especially in Charlotte, forecasted by Zillow to be “2023’s Hottest Housing Market”. Don’t miss out! Contact me today to learn how real estate in the Charlotte region can fuel your wealth in 2023! 

 

The Why Behind the Numbers - January 2023

 

The WHY Behind the Numbers

Looking back on the 2022 US housing market, we saw the effects of inflation, rising interest rates, and elevated sales prices combine to cause a slowdown nationwide. While the real estate market in the greater Charlotte area has slowed, it remains strong when compared to other markets in the US. Slower market activity has its benefits! For buyers, there is less competition from other buyers to avoid overpaying for the price of the home. According to David Stevens, former Assistant Secretary of Housing:

“So be advised…this may be the one and only window for the next few years to get into a buyer’s market. And remember…as the Federal Reserve data shows…home prices only go up and always recover from recessions no matter how mild or severe. Long term homeowners should view this market…right now…as a unique buying opportunity.”

Home prices have moved higher as the Median Sales Price was up 6.8% at $373,625. Months Supply of Homes for Sale was up 100.0 percent to 1.6., indicating that supply is increasing relative to demand.

 

What are the 2023 Charlotte Housing Market Predictions? 

Economists predict sales will continue to slow and housing prices will soften in 2023, with larger price declines projected in more expensive areas. If you are looking to sell your house, this may be the ideal time for your bottom line. National inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which, according to NAR, remains limited at 3.3 months. 

 

Interest Rates remain one of the biggest topics around affordability in the 2023 Housing Market. Fortunately, there are programs and best practices that help buyers strategize mortgage rates -- to make the home of your dreams a reality in 2023. I am here to guide you on the best option for your situation! 

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The Why Behind the Numbers - December 2022

 

Interest rates are still the biggest factor impacting buyers. Rates rose into 7% territory this month, but have settled back to 6% which is still historically low, given this was a popular rate in 2007 and 2008 boom years. This rate was also popular in the early 2000s. A look at rates over time shows that the parents

of Millennials, endured higher rates, and their grandparents’ generation, experienced double-digit interest rates – 10% plus or higher! This highlights the historical low of today's interest rates.

 

There are a number of programs and strategies available to make purchasing your dream home absolutely doable. For example, 2-1 Buydowns assist buyers with the rates they need to buy. There are several potential benefits for homebuyers with a 2-1 buydown. For one thing, it can help them afford a larger mortgage and a more expensive home than they might otherwise qualify for. For another, it buys them some time before their mortgage payments rise to the full amount, which can be helpful if their income is also rising from year to year. If you're interested in learning more about 2-1 buydowns and if that may be a good route for you, don't hesitate to let me know!

 

The Positive:

• Inventory and supply showed increases at report time, for a fifth consecutive month.

• Inventory, which totaled 7500 homes for sale has increased 42 percent compared to last year, pushing supply from 1.1 months in October 2021 to 1.8 months of supply this past October.

• The subtle but steady changes in supply will help to cool rapid price appreciation over time

 

The Bottom Line:

With mortgage interest rates still at a historical low,  purchasing your dream home is feasible with the right strategy and processes. Reply to this email to get started on a home buying or selling plan that will work for you!

 

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Sell Your House Before the Holidays

 

As we gear up for the holiday season, daydreams of celebrating in the warmth of your dream home start playing through our minds. But this nagging question won’t stop knocking at the door of your daydream: with the cooling housing market, is now really a good time to sell your house? 

 

Here are the top 3 reasons why the holidays are a shockingly good time to sell your house:

 

1. Get ahead of other sellers

Customarily the amount of listings on the market will decrease during the holiday season as homeowners’ schedules fill up with holiday plans. Selling your house now, in a less saturated market can increase your profit with multiple offer situations, especially with a strategic pricing and marketing plan. 

 

1. Only entertain serious homebuyers 

We tend to only see serious homebuyers during the holidays, and with less listings on the market this often leads to fewer impactful showings of your house, to get top dollar offers. The supply of homes for sale is still overall low, which indicates there are not enough homes on the market at this time, especially with the largest generation of our time, millennials, reaching home buying years. As Mark Fleming, Chief Economist at First American, stated:

 

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

 

1. Take hold of your equity

The equity you’ve built in your home can completely or partially cover the down payment of your dream! Homeowners in today’s market are holding record high equity. As explained by CoreLogic, the average increase of homeowner equity has climbed nearly $300,000. That’s an all time record! 

 

We’re happy to guide you on the best strategic uses of your equity and the process involved to take advantage of your equity. 

 

Bottom Line

As you consider the pros and cons of selling your house in this market, we’re happy to guide you on the best decisions for your specific situation. Zeroing in on your big why is important to determine if now is the right time for you and your family to make a move. Whether you need more space, a new location, school district, or fresh start in a new space to make home home. We are here to genuinely guide you on the best decision for YOU! Don’t hesitate to reach out with questions or if we can help with any of your real estate needs. 

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How your Mortgage Rate is Determined

October 2022

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Interest rates, interest rates, interest rates: it’s all anyone seems to be talking about! If you’re looking to buy a home, this subject is most likely top of mind. However, there are several factors that play into your home loan’s interest rate. Here are a few things to focus on: 

 

Your Credit Score

Your credit score plays a big role in your interest rates. It gives lenders the assurance that the loan will be repaid. Freddie Mac explains, “When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely. Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate.” If you have questions about optimizing your credit score for the home buying process, please let me know! 

 

Your Loan Type & Terms

There are several different loan types which offer various terms to best fit your buying situation. Conventional, VA, FHA and USDA loans are all popular types of loans. Each category of loan will have different requirements & terms that affect your interest rate, monthly payment, and the amount of interest that is paid over the duration of the loan. 

 

Your Down Payment

The percent required for the down payment will depend on the type of loan that best fits your situation. If you currently own a home and are looking to move, you can use the equity you’ve built toward the downpayment for your next home! Overall, a larger down payment results in a lower interest rate, since lenders view this as a lower risk when you have an increased stake in your property. 

 

Bottom Line

Mortgage rates vary! There are key factors that play a role in the interest rate you get. Contact me today for more information on how to get the lowest interest rate possible, tailored to your specific needs!

 

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How Owning a Home Builds Your Net Worth

September 2022

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🎉 Have you ever wondered why owning a home is a financial achievement widely celebrated? The power of owning real estate lies in its growth potential; as the market grows, your net worth and financial security increases!

 

🏡 Home Ownership is a Major Element of Financial Success

A report from the National Association of Realtors (NAR) notates a vast difference in net worth between homeowners and renters, stating “. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.” That spread puts a homeowner's net worth around 40 times more than home renter's.

 

💰 What's better? As the Equity in your home goes ⬆️, your Net Worth also goes ⬆️

One of the biggest reasons homeowners have a significantly higher net worth is the property's ability to gain equity. The equity in your home increases as it appreciates in value and mortgage payments are paid. Renting a home does not give you that opportunity, as explained in an article recently written on CNET:

 

“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”

 

What's even better is the equity in your home has the power to increase as the property appreciates in the market. Homeownership allows your worth to grow, as highlighted in a recent Bankrate :

 

“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”

 

Owning your home allows you to use your mortgage payments as an active savings account, that grows in value as you pay it monthly; and when you go to sell your home, that money comes back to you! Sadly, renters never see a penny of return on monthly rent.

 

Bottom Line

Homeownership is a huge contributing factor to building your net worth. If you're interested in learning more about how real estate can impact your wealth and financial stability, please don't hesitate to let me know!