Charlotte Market Snapshot

The Charlotte real estate market is humming along quite nicely. Sales are up, homes are selling quicker, and inventory is down.

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We have a short update to share with you today on the current state of the Charlotte real estate market. We looked at the metro area numbers over the last four months, which is essentially the entire summer. 

When we looked at this summer’s numbers compared to last year’s, we saw that the number of sales were up by 3%. This is good, but what was even more interesting is the fact that this number was much higher in certain price segments.

For example, for homes priced $250,000 to $1 million, sales were up 20%. Home sales in the $1 million to $2 million range jumped up by about 46%!

As for what we predict will happen for the rest of the year, we like to look at a few specific measures. The first is pending sales. Those are up 18% overall, and they are up 40% in the $250,000 to $1 million range. The inventory and average days on market are both down by 26% from last year. Also, the showings per listing is 28% higher than it was last summer.

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All indicators point to a strong 4th quarter.

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Really, all signs point to the fact that it’s going to be a strong fourth quarter. If you have any questions or are interested in buying or selling, give us a call or send us an email. We look forward to hearing from you.

What’s So Important About Housing Inventory?

The reason housing inventory is such a vital statistic in real estate is that it gives you an indication of whether it’s a buyer’s market or a seller’s market.

A healthy equilibrium rate is considered six months of inventory. Anything longer than that is considered a buyer’s market. Anything less is considered a seller’s market. By “months of inventory” we mean how many months it would take to sell all the properties that are for sale given the average number of sales per month. If the number is six months, that means it’s going to take six months to sell the properties that are on the market right now.

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Housing inventory tells you whether it’s a buyer’s or seller’s market.

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Is Charlotte a buyer’s market or a seller’s market? Right now, Charlotte is a very strong seller’s market for homes listed under $500,000. Within that price range, the inventory rate is about three to four months. For homes listed over $500,000, it’s a buyer’s market. It’s an even stronger buyer’s market for homes listed above $2 million. Within that price range, the inventory rate is 26 months.

If you have any questions you’d like answered, just give us a call or send us an email. We look forward to talking with you soon.

Everything You Need to Know About Appraisals

Two questions we get asked all the time are, “Why do I need an appraisal?” and “Why are appraisals important?”

Whether you’re buying or selling a home, the appraisal is going to have a significant impact on you. If you’re a seller and the buyer who’s purchasing your home is getting a loan to do so, their lender is going to want to get an appraisal order. If you’re a buyer, you’re going to want to make sure that the home you’re buying is going to appraise for the amount you’re paying for it.

What happens when it doesn’t appraise? If you’re the buyer, you’re going to have to either increase your down payment or convince the seller to reduce their price. If you’re the seller, you can either hope the buyer offers more money or gear up for a renegotiation.

There are ways that you can help yourself by helping the appraisal process. Like lots of folks, appraisers can be overworked and underpaid, so they don’t have a lot of spare time. What we do is meet with the appraiser when they’re coming in to do one and give them information like the house measurements and the property’s highlights. We also give them comparable sales nearby that justify our price. After this, we usually have much less trouble getting appraisals that work for both the buyer and the seller.

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Help yourself by helping the appraisal process.

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If you have any questions you’d like answered, just give us a call or shoot us an email. We look forward to talking with you soon.