Each new year provides an opportunity to look back and reflect on the one prior. For many years, the Charlotte area has been a hotspot for residential real estate and 2023 was no different. The year began with Zillow and Axios announcing that Charlotte would be the hottest housing market of 2023 and was followed by months of mortgage rate volatility, continued home price appreciation, maintained levels of low inventory, and, ultimately, a real estate market that turned closer towards normalization. The Charlotte area has a thriving economy, diverse culture, and robust job market, culminating in an optimistic outlook for the year to come.
Strong Economic Indicators
The 15th largest city in the country, Charlotte offers an enticing blend of urban sophistication and suburban tranquility. Its robust job market, anchored by a diverse economy spanning finance, tech, and healthcare, provides ample opportunities for career growth. The area also boasts a dynamic arts scene, eclectic culinary offerings, and a rich tapestry of festivals and events throughout the year.
The proof is found in Moody's Analytics' latest report, which indicated that, on average, 287 people move to the area every day. While this inbound movement keeps the area vibrant, it also means that demand for housing and home price appreciation remain high. Over the last 20 years, Charlotte area home prices have appreciated an average of 5.1% annually, a statistic that adds to the many advantages of owning a home.
A Seller's, Buyer's, or Balanced Market?
In a "balanced" market, months supply of inventory will be anywhere from 5-6 months. In 2023, the average supply of inventory rose to 3.2 months in November according to Canopy MLS. This indicates a seller's market but is an improvement from 2022's average supply of 2.7 months. Mortgage rates applied downward pressure on the market on both the buyer and seller sides in 2023, with sellers opting to keep their homes and lower mortgage rates and buyers hesitant to purchase at rates that were high relative to the years immediately prior. However, those who entered the market on either side in 2023 likely experienced a more balanced market than in those previous years, with the return of repair negotiations, seller concessions, increased days on the market, and other more "normal" market behaviors.
Standing Out
Strong economic indicators, in-migration, and a mortgage atmosphere that is projected to stabilize suggest that 2024 will see a similarly normalized market in the Charlotte area. Both buyers and sellers will need sound counsel and be willing to negotiate to make deals happen. So, what can these parties do to stand out? For the seller's part, a home in move-in-ready condition is incredibly attractive, as evidenced by a recent Wall Street Journal titled "Nobody Wants to Buy a Fixer-Upper Right Now." On the buyer's side, getting pre-approved or offering to pay with cash allows the seller to more confidently envision a smooth transaction.
Because each client, home, neighborhood, and transaction is unique, partnering with a professional is key to a successful outcome. Helen Adams Realty's agents are trained in pricing, market analysis, negotiation, communication, handling inspections, and more so that they can maximize the experience and result for every client. Additionally, agents and their clients benefit from a deep bench of staff and technological support for everything from marketing to transaction management.
Modern Solutions for Buyers and Sellers
If getting your home in move-in-ready condition seems daunting or expensive, Helen Adams Realty's Market Ready program is worth a look. This program allows sellers to borrow up to $30,000 to make pre-listing improvements to their homes with zero interest or fees so they can sell for top dollar. Additionally, your Helen Adams Realty agent will quarterback the entire process, including project recommendations, sourcing vendors, handling appointments, processing and delivering payments, and more. Once the home sells, the seller simply pays Helen Adams Realty back from their net proceeds at closing. Some sellers may also need assistance with financing between their current home and the one they intend to purchase. Helen Adams Realty's Modern Bridge solution allows sellers to buy now and sell later.
Buyers who want a leg up have options, too. A pre-approval shows the seller that the buyer understands the mortgage process, is financially prepared and able to purchase a home, and is serious about the process. For those unsure where to start, IntroLend Carolinas offers a simplified experience that provides every client with competitive bids that they can compare side-by-side as well as the assistance of a dedicated, local finance professional. IntroLend also backs Helen Adams Realty's Cash Offers solution, through which buyers can get pre-funded with cash to make their offer that much more attractive to a seller.
A Final Note
In reflecting on 2023 and looking forward to 2024, the Charlotte area home market is expected to be strong and continue to pay dividends to those willing and able to invest in it. Ultimately, Charlotte embodies a perfect balance between career opportunities, cultural richness, and a comfortable lifestyle, making it a coveted place to live and thrive.
From all of us at Helen Adams Realty, thank you for your continued trust and support last year and in the year ahead. We are proud to serve our community as a local, family-owned business since 1975.