2017’s Seller’s Market is Stronger in Charlotte
If you follow real estate like I do, all the talk this year has been about the strongest seller’s market in the US in over a decade. Here’s what that means. Very simple – if you’re selling your house this year, you can command a higher asking price and sell your home faster than ever. On the flip side, buyers of course pay the price for this.
There are some statistical metrics that precisely define when exactly we’re in a seller’s market. They can be driven by shift in migration patterns (e.g. more people moving to Charlotte), expectations that interest rates will rise soon (something the Fed has all but announced), or inventory shifts.
See this chart from April as reported by the National Association of REALTORS:
The simple metrics here show why we call this a “Seller’s Market.” Average list prices are up 9% vs last year, homes are selling faster, and there are 12% fewer listings nationwide. The list price is of course the result of the other two metrics, and it’s helping sellers.
In Charlotte, it’s even more dramatic. Here’s what it looks like on whole for our market.
– Average list price: $327k. Up a whopping 27% YoY
– Days on Market: 51 days
– Active Listings: 8,634. Down an astonishing 42% vs 2016
Those are eye-popping numbers never seen before in Charlotte. It gets even more pronounced in some of the most in-demand neighborhoods – particularly those that have recently benefiting from the proposed new school zoning.
Much of this is driven by the mass influx of new residents coming to Charlotte. There simply aren’t enough high-quality single family homes available for all the new people coming to the Queen City.
It’s even impacted the commercial market. Sarah Hamer, a Madison Park homeowner, has spent the last year trying to find commercial space for her new business, Escape Tactic. She looked at over 40 different locations for her business before she finally found a place to buy in LoSo. “More than a dozen landlords with available inventory refused to rent to us. Demand in the commercial space mirrors what we’re seeing in residential. Owners are waiting for the perfect offer, and in many cases, they’re getting it.”
The growth in Charlotte is great for our economy, and if you’re a home owner, you can reap the rewards right now. The challenge is making your play your hand right and maximize value in your sale. With the changing dynamics in the market, extracting value now is more art than science. If you need help from a seasoned expert who can help you get the most for your home, give us a call. We’re here to help!