Demand will keep pushing Charlotte home prices up in 2022

Demand will keep pushing Charlotte home prices up in 2022

Photo: Brianna Crane/Axios Charlotte

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Homes in Charlotte will only continue to become more expensive in 2022, say 28 local real estate agents we polled in a recent survey.

State of play: The median price for a home in Charlotte is $409,327, up from $348,739 a year ago, according to the latest from Canopy. That’s a 17.4% price increase.

  • Zillow ranked Charlotte as the fifth hottest market in the country for 2022.
  • And PropertyShark listed Charlotte as the No.1 cheapest city to live in with the best weather. Compared to other large cities, Charlotte has the most affordable housing and most mild weather, according to Forbes.

What they’re saying: Most survey respondents expect home values to rise simply because there’s not enough supply to keep up with booming demand.

  • Kimberly Antolini of Corcoran HM Properties said one of her recent listings had 52 showings and 19 offers. Only one person can win the house, so that leaves 51 interested buyers still on the hunt, she explained.
  • But if home prices do keep rising, many anticipate it’ll be a slower upward climb compared to 2021, in part because mortgage rates are ticking up, too.

    “As Charlotte continues its ascent as a premier destination for people to live, the imbalance in supply and demand will persist,” Daniel Cottingham of Cottingham Chalk said. “Interest rates will cool demand to some degree, but not enough to balance the market.”

    • Cottingham predicts tight inventory will reign, which will continue to fuel bidding wars and price appreciation.

    However, sellers should be prepared for pickier buyers.

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    “In 2022 buyers will be a bit more selective, so really preparing your home for the market is important and overpricing your home initially could actually end up hurting your bottom line,” Jeff Clay, owner of JClay Realty Group, said.

    • Stacey Stolar at Corcoran HM Properties shared that because buyers are passing on overpriced homes, we might start to see homes sit on the market longer that what we’ve been used to.
    • These changes might not impact the macro trends greatly, but will provide pockets of relief for tired house hunters.

    Yes, but: The market will still favor sellers, and buyers should anticipate challenges. “It is possible to buy a house in this market, you just have to come ready with your game face on,” one respondent shared.

    Driving the news: Respondents say demand here is the No. 1 reason home prices likely won’t fall soon. Julie Coffey at Savvy + Co. says the headline for Charlotte real estate in 2022 is “Scarcity Drives Demand.”

    • “I think we may plateau a bit this year and the upward price growth may slow a bit due to more inventory hitting the market, but I think demand remains very strong,” Tim Hansley at Dickens Mitchener said. “I don’t think the record breaking numbers we saw in 2021 are going anywhere over the next 2-3 years.”
    • Hansley predicts sellers who’ve held off the last two years for fear of not finding their next home, will list in 2022 so they don’t miss out on peak pricing. If that happens, we’ll see an uptick in inventory — but not enough to flip the market.

    Even if 2022 trends similarly to 2021 (increased prices, low inventory), experts say smaller shifts in the market could occur.

    • “Multiple offers and high demand will still be a ‘thing’,  yet we won’t think something is wrong with a home that’s on the market longer than a day,” Bree Pittman of Keller Williams Charlotte University shared.

    Suzanne Cowden with Corcoran HM Properties predicts some neighborhoods may have already peaked, and home values will level off in those areas. While some neighborhoods are still gaining popularity and home prices will continue to rise in those areas.

    • For example, large lots in established neighborhoods are prime real estate.
    • Builders can turn one older house into two new houses or duet-style townhouses. Home values in those areas will keep rising because land and inventory are hard to come by, Cowden explained.

    The other side: A few respondents, though, believe 2022 will actually be even more frenzied than 2021.

    • Peggy Peterson of Corcoran HM Properties summed it up with her headline for 2022 real estate in Charlotte: “And you thought the market was crazy in 2021???”

    Other trends cropping up include higher demand for ranch-style homes, demand for more new construction, and an increase desire for things like outdoor space.

    Bottom line: No one has a crystal ball, but Charlotte real estate experts predict the 2022 market will remain active and will be fueled by high demand.

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