Exploring Metropolitan Charlotte: Ballantyne

 

Last month we began a new series Exploring Metropolitan Charlotte, beginning with the Town of Matthews.  This month we will move on to another popular upscale area of Charlotte: a section of the city called Ballantyne.  Ballantyne began only about 30 years ago with the creation of a large corporate and office park in at the southern border of the City of Charlotte known as Ballantyne Corporate Park which was built on what had been a wooded hunting ground.  The office complex is now home to over 4,000,000 sq.ft. of Class A office space, and is the headquarters for such companies as Curtis-Wright, Snyders-Lance, Inc. and ESPN Regional Television.  Wells Fargo Bank also maintains a major corporate presence in Ballantyne.  And as the office park grew, upscale residential housing developments sprang up around the office complex.

 

 

Ballantyne Country Club is one such residential development, consisting of sprawling custom homes surrounding a golf course and recreational facilities; but there are many communities and subdivisions located in the Ballantyne area, from larger custom homes priced over $1,000,000 to upscale single family homes at half that price, to condominiums and townhouses typically priced in the $200,000’s.  Shopping and entertainment in the area is varied and extensive.  And public schools serving Ballantyne residents are some of the best-performing schools in the Charlotte-Mecklenburg Schools system. 

 

 

Located about a 20-minute drive from Charlotte’s “Uptown” city center to the north, Ballantyne is hardly an isolated area.  But it is largely self-sufficient, and there has been talk from time to time of actually seceding from the City of Charlotte to establish more control of things like local schools, continuing development and budgets for public services.  The rapid pace of Ballantyne’s growth is not without complications, as roads and highways are frequently overcrowded and roadway construction and expansion are an ongoing process.

 

For those who work in or near Ballantyne Corporate Park, the Ballantyne area offers an extensive variety of convenient housing, much of it having been built after the mid-1990’s.  The area has developed to a point that is virtually unrecognizable from its early rural roots of only 30 years ago, and it has become one of the most popular, sought-after choices to make a home and build a future in the Charlotte metropolitan area.  

For more information and to search the entire Charlotte area MLS system FREE for homes, townhouses, condominiums-- including foreclosures and short sales-- go to www.EricDorerRealEstate.com.  

Exploring Metropolitan Charlotte: The Town of Matthews

 

For those who are considering a move to the metropolitan Charlotte, NC, area—and for those who already live here—we thought a brief discussion of surrounding towns and areas, as well as areas and communities within the City of Charlotte, might be useful.  For those who don’t already know, the City of Charlotte is ranked as the 15^th largest city in the United States, covers a large geographical area, and it continues to see rapid growth.  It was ranked the fastest growing American city between 2004 and 2014.  It is also the home to major corporate employers, particularly in the banking and finance sectors of the economy.  Bank of America has its national headquarters in Charlotte, and Wells Fargo headquarters its eastern regional operations in the city, for example.  But Charlotte is also surrounded by unique towns and communities that each have their own attributes and character.  The Town of Matthews is one such community.

 

Matthews is located in the southeast corner of Mecklenburg County, on the southern border of the City of Charlotte.  It is characterized by neat suburban homes—many that can be pricey for the Charlotte area—ample parks and recreation, well-performing public and private schools, and a quaint historic downtown area consisting of streets lined with small shops, restaurants and businesses that combine to create a “home town” feel, all within a 15 minute drive of all that Charlotte’s Uptown city center has to offer.

 

 

Matthews has its own economy and employers.  It is corporate headquarters to Family Dollar Stores and the Harris Teeter supermarket chain, for example.  But despite its relative size and proximity to Charlotte, Matthews retains a clean, safe, “small town” feel.  Continuing development is well managed and characterized by the retention of green, wooded areas and ample parks, recreation and sports facilities, bicycle trails and nature walks. Cost of living is reasonable and standard of living is relatively high.  Median household income is approximately $78,000/year and median family income is approximately $89,000/year. 

 

With its moderate temperate climate, well-performing schools, clean and safe neighborhoods, ample shopping, recreation and entertainment, and its close proximity to the 15^th largest city in the United States, Matthews provides a unique mix of modern cosmopolitan resources with a small town feel and atmosphere.  It’s a great place in which to raise a family, without having to sacrifice strong employment and career opportunities or a high standard of living at a reasonable cost.

Is It Time to Sell? The Strong Sellers’ Real Estate Market Continues in Charlotte

 Anyone who has attempted to buy a home in the Charlotte metropolitan area in the last two years or so is well aware that the real estate market is very favorable to sellers.  Homes priced at their full fair market value often receive multiple offers upon entering the market, and it is not unusual for homes to go under contract above—often well above—the listing price.  The main reason for this remains a lack of available homes for sale and a continuing abundance of buyers who are ready, willing and able to make the purchase.  The numbers tell the story. Inventory of homes for sale in the Charlotte area is down almost 50% from levels of only a year ago.  In July of 2019, there were 10,629 homes for sale in the region.  In July of 2020, that number was only 5,580 homes.  Listing prices are also far above levels of only a year ago—up 16% over the previous year.  And closed sale prices are averaging 10.6% higher than last year.  So is this a good time to sell a home?

 

Of course it is, all other things being equal.  One of the fundamental rules for investing is that you sell into a rising market. You don’t wait for the market to peak because the thing that follows a peak is likely a decline—sometimes an extended decline in values.  In just the last year, the median sale price rose 8.1% (April 2019 to April 2020). In an age when mortgage interest rates continue at historic lows—about 3.29% for a 30-year fixed rate mortgage, and about 2.76% for a 15-year fixed rate mortgage—an annual return on investment of over 8% is something to brag about.

 

When faced with very healthy year-over-year returns on investment and a market that continues to rise, many seasoned investors decide to take their profits before a market reversal.  Of course, many homeowners have other personal considerations.  The family home may be their single largest financial investment, but there are also emotional and familial considerations associated with the decision to sell or buy a home, and not everyone is willing to put their children in new schools or go through the inconvenience of a move in order to take profit out of their home.  Some prefer to tap into their growing home equity by taking a home equity loan.  But a loan really just mortgages what should be profit, albeit at a low rate of interest in today’s market.  If the upward trend in home values subsides or even reverses, a home equity loan can become a debt trap—something many homeowners regretted from about 2010 to about 2015 or so. 

 

Those who are able to take advantage of this market and cash out their gains are likely to be rewarded.  Homeowners who are ready to downsize or who have held investment property for rental come to mind.  It would take a significant period of time for most people to save $100,000 or $200,000, and in many cases homeowners have more than this in equity in their homes—“profit” that can easily be realized in the current real estate market.  Is it time to sell?  The data indicate it is.   

North Carolina moved to Phase 2.5 Re-Opening on September 4… Implications for Real Estate

 Governor Roy Cooper has announced that he would sign an executive order moving North Carolina slowly closer to re-opening, as the COVID-19 crisis drags on into the fall of 2020.  On September 4, NC will move to “Phase 2.5,” whereby mask wearing and social distancing will still be emphasized.  The State’s trend for COVID-19 like illness continues in decline, trajectory of lab confirmed cases remains stable, and hospitalizations for COVID-like illnesses continues to decline.   

 

Phase 2.5 will have the following practical consequences for North Carolina:

 

·         Permitted mass gatherings will increase from Phase 2 limits of 10 to Phase 2.5 limits of 25 indoors, and from 25 to 50 people outdoors.

·         Playgrounds may now open.

·         Museums and aquariums my re-open at 50% capacity.

·         Gyms and indoor exercise and recreation facilities may re-open at 30% capacity—this includes bowling alleys, skating rinks, indoor basketball courts, martial arts and yoga studios, indoor rock climbing facilities, etc.

·         Movie theaters, bars, nightclubs, and other indoor entertainment facilities will remain closed.

·         Mass gathering limits remain in effect for large venue.

 

Real estate services had already been deemed “essential” under Phase 2, so the real estate market in North Carolina—particularly in the Charlotte metropolitan area—had already begun to show strong signs of life.  Of course, all such activity is subject to general COVID-19 guidelines for things like mask-wearing and social distancing.  Low housing inventory and historically low mortgage interest rates have further strengthened the real estate market in the State.

 

Phase 2.5 appears to be a small, cautious step toward a return to normalcy; and it is hoped that as trends for COVID-19 infection and hospitalization remain stable or in decline, North Carolina can chart a more direct and rapid course toward a return to business as usual.  Fortunately for homeowners and investors, the real estate market in the State remains very strong and vibrant; and it shows no signs of weakening.  This has caused some property owners to consider the sale of property into a rising market, cashing out large gains that may have accumulated between 2011 or so and today.  If a potential property seller is considering “downsizing” or otherwise moving on to the next home or investment, there has probably never been a better time to put a home on the market—continuing concerns over COVID-19 notwithstanding.

Is This a Good Time to Sell a Home in Charlotte, in Spite of COVID-19?

We are more than half finished with the Summer of 2020, and the COVID-19 virus surged a bit in North Carolina in July.  The Governor extended Phase 2 re-opening for several weeks, although real estate services are considered “essential” under Phase 2 and, therefore, real estate activity saw a significant increase in July.  So is this a good time to sell a home in Charlotte metropolitan area, in spite of continuing pandemic concerns?

The short answer to the above question is an unqualified “yes.”    This isn’t just wishful thinking en route to a hopeful return to some normalcy.  It is clearly supported by the July data.  According to the Charlotte Regional Realtors’ Association (“Canopy”), in July of 2017 there were 24,337 active listings.  In July of 2019 there were 22,932 properties for sale.  But in July of 2020, only 18,576 properties were actively listed for sale.  Conclusion: inventory of homes for sale remains very low in the Charlotte area, and that puts sellers in a very good position.  There are fewer homes competing for buyers, and conversely there more buyers considering a limited number of homes available for sale.  This is a classic “Sellers’ Market.” 

The above conclusion is borne out by the closed sale price to list price ratio.  In July of 2017, home sales closed at a price that was 98.7% of the listing price on average.  That ratio was the same in July of 2019.  But in July of 2020, Charlotte area homes sold on average for 99.4% of the price at which they were listed.  Again, this data comes from Canopy.

Combining this with historically low mortgage interest rates, which make a home purchase more affordable to the buyer, and we are presented with an extraordinary opportunity for sellers to cash out the significant increases in market value most homes have seen in the Charlotte area over the last several years.  As of August 3, 2020, the typical 30 year mortgage carried an interest rate of 3.09%, down 5 basis points from the week earlier.  A typical 15 year mortgage carried at rate of 2.72%, down 3 basis points.

All of this reflects an undeniable continuation of the Sellers’ Market we have seen for some time.  In fact, with the uncertainty associated with the outcome of the upcoming November elections—and the implications that outcome may have on the economy in general, and the real estate market in particular, this may well be an optimal time to sell a home.  COVID-19 will eventually be brought under control—probably sooner rather than later, if the recent talk of a vaccine before the end of 2020 is true.  The November elections may actually present more of a wild card that sellers might wish to avoid by selling before the results are known.

For more information and to search the entire Charlotte area MLS system FREE, go to www.EricDorerRealEstate.com; Check out our client reviews while on the web site!

#CLTHome #CharlotteHomes #CLTrealestate #Charlotteinvestmentproperty 

Charlotte Area Real Estate Market in Summer 2020 Remains Strong and Steady

Going into July of 2020, economic, political and social storms seem to churn all around us.  Just as it seemed re-opening was well underway IN North Carolina and the COVID-19 crisis might be winding down, we received news of an increase in cases.  The governor thereafter delayed Phase 3 re-opening by another 21 days.  We remain in Phase 2, where real estate services are deemed “essential” and are permitted to resume, subject to restrictions and precautions such as social distancing and the wearing of face masks.  So how does all of this seem to be affecting the Charlotte area real estate market?

The statistics published by the Canopy Realtor Association (the Charlotte area association of Realtors) sums up market health pretty well.  Year-over-year data comparing May 2019 to May 2020, pending sales of all types of residential real estate priced between $200,001 and $300,000 were up 14.4%.  The number of days a property remained on the market before going under contract was down 5.4%. A huge 97.5% of all sales occurred at or above the listing price.  Why?  The obvious reason is that inventory of residential property available for sale and purchase was down a whopping 44.7% in that $200,001 - $300,000 price range.  Inventory of single family homes was down 38.9% year-over-year.  A sortable summary of real estate market statistics is available from Canopy online.

What does all this mean?  Sales are up.  Prices are up.  Inventory is down.  Days on market are down.  In fact, mortgage interest remains at ultra-low rates on fixed rate financing throughout the United States.  All of this brings buyers to the market who are ready, willing and more than able to purchase property, while fewer properties are available for purchase.  This creates what is typically called a “Seller’s Market.”

One conclusion one could draw from all of this is it is an extremely favorable time to sell a home.  The likelihood that a seller will get full fair market value in a shorter period of time on the market is high.  Median sales prices have risen substantially in the Charlotte area, from $195,000 in 2017 to $250,000+ in 2020.  Individual home prices will vary, based on precise location, size, condition, etc. of course.  But this might be a very good time for what they call in investment markets “profit-taking.”

Despite all the headwinds—political unrest… COVID-19 uncertainty… and the economic turmoil caused by both, the real estate market in the Charlotte metropolitan area remains remarkably strong and steady going into the summer of 2020.  Underlying market conditions, from inventory of homes for sale to ultra-low mortgage interest rates, indicate that this market strength is likely to continue into the fall. 

For more information and to search the entire Charlotte area MLS system for homes, townhouses, condos, etc.—including foreclosures and short sales—go to the Home Page of our web site.  While on our site, browse our Client Reviews.

#CLTHomesforSale #CharlotteHomes #CharlotteRealEstate #CharlotteAreaHomes #MatthewsHomes #HuntersvilleHomes #CharlotteForeclosures

Re-Opening Charlotte Phase II… Impressions in Real Estate from the Front Lines

North Carolina in general, and Charlotte in particular, entered Phase 2 re-opening guidelines on May 22.  The guidelines allow real estate services to be deemed “essential,” and permit the showing of homes to resume, subject to social distancing, PPE and other precautions.  Some restaurants and stores have re-opened at limited capacity, and judging from my personal observations during the last week, there is a large, pent-up desire to return to some sense of normalcy in North Carolina and the Charlotte metropolitan area.  Outdoor restaurant seating seems to be in great demand, popular local craft breweries such as Old Mecklenburg Brewery have seen a quick and vigorous rebound in business, and there appears to be a huge appetite for a return to life as it was before COVID-19.

Prior to May 22, there was speculation and some doubt as to how quickly recovery would come.  But as a broker who populates the “front lines” in residential real estate activity all day, every day, it appears to me that the real estate market is no exception to the demand for a return to normalcy in the broader economy.  At the end of March, I saw a dramatic decrease in business activity, as NC and the country dealt with the shock of stay-at-home orders and the uncertain dangers of the pandemic.  I even saw several pending contracts cancelled, for fear of the impact the crisis would have on real estate values.  Since re-opening has begun, I have seen a significant increase in traffic on my web site, as well as increases in seller listing activity and buyer interest in moving forward with home purchases.  It seems obvious that those who are not at high risk of infection have “had enough” of placing their life plans on hold.  The main purpose of the stay-at-home orders was to avoid overwhelming medical service providers and hospitals with COVID-19 patients.  It is fair to say that this has been effectively avoided, and while people may be well advised to continue to be cautious until a vaccine is found, it is probably the groups at higher risk of contracting coronavirus that should continue to stay at home and limit contact with others.

Judging from the activity I have observed and experienced in the Charlotte area real estate market since entering Phase 2 of re-opening only a week ago, there may well be a prompt, somewhat “V-Shaped” recovery.   People appear to be anxious to return to work and move forward with their major life plans and decisions—such as buying or selling a home.  The shock and fear associated with the stay-at-home orders seems to be subsiding.  It appears that a substantial portion of the population feels it is time to “get on with life.”  If this continues in the coming weeks, the Charlotte area real estate market should be able to emerge from the crisis in very good health indeed. 

#CLTrealestate #charlottehomes #CLThomesforsale #charlotteforeclosures #charlotterealestateinvestment

As the Charlotte Area Re-opens, What Can We Expect for Real Estate?

Governor Roy Cooper has scheduled a lifting of the stay-at-home order for North Carolina on May 9.  To date, there is no expectation that the Charlotte metropolitan area will extend any stay-at-home order after that date.  Real estate services will be deemed “essential services” after May 8, so the business of buying or selling a home should begin to move closer to normal, subject to social distancing and other precautions, beginning on May 9.  A discussion of North Carolina guidelines for dealing with the coronavirus health crisis is beyond the scope of this blog post.  I will limit this discussion to factors affecting the real estate market after May 9 and going forward.

It is likely that even after restrictions on meetings are relaxed there will be a reluctance on the part of some to interact with others.  This will affect all businesses and commercial activities, including real estate.   There is really no way to know how deep or lasting this reluctance will be.  I would prefer to focus on more measurable predictors of activity.

One very measurable indicator is mortgage interest rates.  As of May 1, 2020, mortgage rates continued to fall on a month-over-month basis to an average of 3.52% for a 30-year fixed rate mortgage.  Mortgage rate trends are expected to remain at nearly historical lows into the foreseeable future.  Of course, that makes the purchase of a home or investment property more affordable.  It can even make the purchase of a home financially preferable to renting a home because monthly housing expense can be lower to the owner than the renter; and the possibility of building equity in the home over time provides a very real and attractive incentive to own a home.

Another predictor of market activity is the supply of available homes in the context of buyer demand.  It is no secret that the residential real estate market immediately preceding the COVIT-19 crisis was a “seller’s market,” characterized by low inventory and a relatively large number of buyers competing for the limited inventory.  This often resulted in multiple offers on homes, and contract prices routinely bid up above the listing price. I have seen no reliable data to indicate a real shift in that market dynamic as the Charlotte metropolitan area re-opens.  However, one less measurable factor mentioned above could affect the market in favor of some buyers during the early stages of re-opening.

If some home buyers are at first reluctant to meet with brokers to view homes of interest, there may actually be less buyers competing for the limited inventory of homes available—at least in the early stages of re-opening.  Listings that might have promptly received multiple offers in February might therefore receive fewer offers due to the reluctance of some buyers to “put themselves at risk” by viewing properties.  This might give a somewhat short-lived advantage to those prospective home buyers who are willing to engage in market activity early on.

Housing and home ownership are fundamental pillars of the U.S. economy, and there is little expectation at this point that this will change.  The short term economic downturn caused by the coronavirus pandemic was not the result of weaknesses in the economy—it was the result of the shut downs caused by the pandemic.  As long as the overall economy begins to move again—and displaced workers are able to get back to work and therefore support their previous goal of home ownership—the real estate market should return to normal in relatively short order.  And while an estimated 10% of North Carolina’s workers have applied for unemployment benefits since the health crisis began, most are likely to return to work before the end of 2020; and even a 10% or 15% reduction in the number of prospective home buyers actively seeking to purchase a home is unlikely to have a substantial impact on the Charlotte real estate market when business begins to open up again.

Under a “Stay at Home” Order? Use the Time to Research the Housing Market

If you are like so many other people inside and outside North Carolina, you are currently under a “Stay at Home” order.  Many are able to work from home.  Some find that difficult.  If you were considering a home purchase or a home sale before the coronavirus crisis, you can make good use of your downtime by researching and familiarizing yourself with the real estate market online.  It’s relatively easy to do.  Take advantage of the free resources available on my web site: Eric J. Dorer Real Estate. At the top of the home page is a search bar that enables you to customize a search of all homes in the entire Charlotte area MLS system—everything from single family homes to condos and townhouses… from recent sales to foreclosures and other distress sales.  And it is all free.

If you are a potential buyer, you may have noted that we have been experiencing an extreme sellers’ market in the last couple of years in the Charlotte area—a market characterized by low inventory and multiple offers on homes that are decent values.  This can be very frustrating to someone who is serious about finding a home because prices tend to be promptly bid up above the listing price.  One way to avoid getting caught up in a bidding war and overpaying for a home is to know your market.  Have a solid idea of what a home is worth and set a ceiling above which you will not bid on a property.  This is something most people are really not competent to establish without the help of a broker and all the resources available to that broker.  But the more familiar you are with your market—and subdivisions within that market—and more prepared you will be to understand the analysis your broker provides for you for a home on which you may be interested in making an offer.

The same is true for a seller.  This has been a great market in which to sell a home.  You may not realize just how good a market it is until you search recent comparable sales to the home you may want to sell.  Use the downtime you may be enduring currently to do some homework on this issue.

Timing can be everything, as the saying goes; and as the world grinds to a stop in the next several weeks, showings and offers on properties that are currently on the market will probably also slow significantly.  If you are a buyer who has been frustrated by market conditions in the last year or so, you might even consider making an offer on a home during this period. There will probably less competition for the next several weeks.  Showings are still permitted, with limitations and restrictions.  Further, the standard NC Bar approved Offer to Purchase and Contract provides for a “due diligence period” during which a buyer may withdraw from the contract for any reason or no reason at all.  If the buyer withdraws during this due diligence period, he or she is entitled to the full refund of any earnest money deposit made with the contract.  A non-refundable due diligence fee is customarily paid to the seller to compensate for this due diligence period, but if a buyer has not been able to view or adequately inspect the property prior to making an offer due to the “social distancing” called for to address the cononavirus crisis, it may not be unreasonable to ask the seller to waive the due diligence fee.  

Many people are finding it very difficult to deal with the social distancing and stay at home recommendations brought on by the current health crisis.  A smart, creative buyer might be able to use this time to navigate around some of the challenges and obstacles experienced in the extreme sellers’ market we have seen in the Charlotte metro area in the last year or so.  If nothing else, both buyers and sellers can certainly use the free time they want to fill by researching and familiarizing themselves with the market—a smart investment of time as you consider the purchase or sale of what is probably your largest single investment.  If you would like help with this, just let me know.  I will be happy to set up an automated for you in the MLS system, based on the specific search criteria you provide.  Stay safe.

#Charlottehomes #Charlottearearealestate #Charlotteareaforeclosures #Charlotteinvestmentproperty

For Those Considering a Move to Metropolitan Charlotte… and for Those New to the Area

Many readers of this blog are considering a move to the Charlotte metropolitan area.  Perhaps the company you work for is relocating to Charlotte, as many have in recent years.  Jobs and career opportunities abound here.  Others have recently moved here, and I thought it might be helpful to provide a blog post that contains links to some of the points of interest and things to do in this newer world-class city.

If it’s professional sports that you enjoy, The Carolina Panthers NFL football franchise calls Bank of America Stadium in Uptown Charlotte home.  While the team is currently rebuilding after a disappointing season, 2015 MVP Cam Newton is still starting quarterback and the incredible running back Christian McCaffrey is sure to amaze and entertain fans.  If NBA basketball suits you more, Charlotte Hornets owner, Michael Jordan, promises a team that exceeds expectations.  And if you prefer professional hockey, Charlotte can even scratch that itch with the Charlotte Checkers.

If top-notch theater, including Broadway show tours and local productions, are more to your liking, The Blumenthal Center for the Performing Arts offers a full array of shows, and musical performances by our own Charlotte Symphony and a wide variety touring artists from a great mix of musical genres.  Charlotte can even boast its own new intimate jazz club in the heart of the city center, where world-class composers and musicians like Chieli Minucci & Special EFX and the Rippingtons have recently performed.

At the cross section of professional sports and pop music, the Spectrum Center Arena hosts not only Hornets basketball, but diverse acts like Elton John, the Harlem Globe Trotters, James Taylor, Andrea Bocelli and Marc Anthony.  The Bonjangles Coliseum and Ovens Auditorium offer performances from the likes of Brit Floyd and Josh Gates to comedy and family events.

Restaurants also abound to cater to the widest variety of tastes.  The “Queen City” hosts the annual Queen's Feast Restaurant Week where local eateries offer discounts to entice diners to try what they have to offer. Year-round the city offers a huge diversity of cuisine. A sampling of them were recently summarized by Charlotte Magazine in its 50 Best Restaurants in Charlotte 2020 Edition.

Of course, the above is really just the beginning of a discussion about things to see, do and experience in greater Charlotte.  But it is a good starting point in a journey that is always expanding and unlikely to find an end any time soon.

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Outlook for Continuing Growth and Prosperity in Metropolitan Charlotte is Very Strong

Are you considering a move?  Perhaps you’re tired of high taxes, inflated real estate prices and high cost of living in the northeast or the west.  Perhaps you are looking for an entrepreneur-friendly place to build a business and a future.  Maybe quality of life is a larger consideration.  Maybe the ability to experience all four seasons… or newer, cleaner, well-planned communities… or strong technological and educational infrastructure are prime considerations.  The Charlotte metropolitan area provides all of the above, and a well-managed growth rate that is the envy of most other American cities.

Charlotte is reportedly the third fastest growing U.S. city.  Its population is expected to expand 47% percent between 2010 to 2030 from 1.87 million to 2.74 million residents.  Major national and international employers continue to locate their headquarters in the city, from Honeywell and Duke Energy to Lowe’s and Bank of America.  The University of North Carolina at Charlotte is a recruiting hub for Charlotte’s employers, with its huge, modern campus and more than 27,000 students enrolled in a wide variety of undergraduate and post graduate degree programs. But, in spite of its high growth, Charlotte is still much smaller and a more manageable city in which to live and work than its neighbor to the south, Atlanta.  Charlotte’s population is still only about one-quarter that of Atlanta.

The greater Charlotte real estate market (which includes surrounding suburbs such as Matthews, Mint Hill, Huntersville and Mooresville) remains very hot for investors in both single family and multifamily properties.  In a recent Zillow report, Charlotte was deemed the fourth hottest real estate market in the country.  Realtor.com ranked Charlotte in the top ten real estate markets nationally.  The median price of homes sold in 2019 was $230,000; and with the strong employment opportunities in the region, home values and the cost of living are quite affordable by comparison to other regions of the U.S.

With the Appalachian Mountains and the beautiful Blue Ridge Parkway about a three-hour drive to the west, and the warm beaches of the Atlantic Coast about the same distance to the east, skiing, hiking and camping are as easily within reach of the Charlotte metro area as beachcombing and deep sea fishing.  From a thriving economy, business and employment opportunities to still reasonable home values and an affordable cost of living, metropolitan Charlotte provides an extremely attractive place in which to build a future, and all indications and expectations are that the region will continue to offer all of these things well into the foreseeable future.  

Welcome to 2020… What Can We Expect in Charlotte Real Estate?

Happy New Year and welcome to 2020!  The Charlotte real estate market has seen a steady recovery from the lost value, short sales and foreclosures experienced just after the Great Recession.  Median home values in 2010 in the Charlotte metropolitan area (including Mecklenburg, Cabarrus, and Union Counties) settled at about only $160,000.[1]  By the close of 2019, median home values had recovered to approximately $260,000.  The recovery has been strong, but keep in mind this recover has occurred over a ten year period.  It has been steady and sustained over time, not volatile or dramatically swinging from highs to lows back to the current high.

The average list price of a home in the Charlotte metro area rose 8.5% between 2018 and 2019.  But the inventory of homes available for purchase and sale fell a whopping 21.3% between 2018 and 2019.  That persistent lack of inventory has continued to drive market values upward, with the average final sales price in 2019 rising 6.6% above the average final sales price in 2018.  And all of this has been fueled by a continuation of low mortgage interest rates, making monthly payments low relative to the cost of renting a comparable home, and making purchases affordable (and preferable from an overall wealth-building perspective).

In the context of Charlotte real estate market performance in the previous 10 years—and in the context of the market climate in 2019—what can we expect in 2020?  Of course, the overall national economy is indisputably strong, and the growth and economic health of the Charlotte region continues to surpass most other regions of the country by almost every measure.  Moreover, we have entered an election year and those holding the reins of power have every reason to maintain the country’s economic strength as we move toward November elections.

One of the main reasons prices continue to rise and we find ourselves in a classic “sellers’ market” in the Charlotte area is that inventory of homes available for sale remains well below demand of buyers.  With inventory of homes available down over 20% in the past 12 months, it would take a dramatic increase in the number of homes entering the market to change this in the next 12 months.  Sellers might well decide in greater numbers that this is an excellent time to cash out their gains (because it is), but the increase in the number of sellers would have to be dramatic in order to compensate for the shortage of inventory sufficiently to transform the market in 2020 from the sellers’ market we have seen throughout 2019.  I don’t expect that to happen—not in any large or dramatic way.  The good news about the Charlotte real estate market is that it is steady, strong, stable and decidedly lacking in the sort of “drama” that causes volatility in values.

So what can we expect from the Charlotte area real estate market in 2020?  We will probably see more of what we saw in 2019.  I would expect inventory of homes available for purchase to increase a bit as more sellers recognize the opportunities this market creates for them.  If that happens, there will be some good news for buyers as there may be more competition among sellers for their interest.  But the current market is actually quite healthy and vibrant for both buyers and sellers.  The “screaming deals” created by the volatility of the market following the Great Recession are probably gone for a while.  But that is a good thing for the overall health of the Charlotte real estate market.  Buyers cannot expect to offer 90% of the listing price of a home and succeed in getting the home under contract in this market.  But they can expect the value of the home they purchase to steadily increase with the market over time, and that stability is something most homeowners prefer over the possible opportunities created by a volatile market. 

This means investors and flippers will probably continue to find it difficult to identify properties on which they can generate an acceptable profit in the short term.  That was easy in 2010, but no longer. However, truly knowledgeable, well prepared investors and flippers will still find properties in need of repair and renovation—mostly in areas of the metropolitan region that continue to see revitalization.  They will have to rely on their ability to estimate costs and keep budgets under control because the days in which properties could be purchased well below their after repair values are likely gone for a while. 

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[1] Source: Canopy MLS, Inc. All data provided by the Charlotte Regional Realtor Association.