Over the past decade, Charlotte has often ranked among the country’s hottest real estate markets. According to the 2022 Urban Land Institute report, which surveys nearly 2,000 real estate experts in addition to analyzing real estate data from across the nation, the Queen City is No. 6. In the nation.
In the past three ULI reports, Charlotte has fallen in the top 10, following the trend of real estate investors, homebuilders, and companies who’ve been eyeing the area for its economic growth potential. Although prices are rising, the city continues to attract many for its high-quality lifestyle and development opportunities, as the current report notes.
This summer, it wasn’t uncommon to get over a dozen or more offers on one house, something that’s great for sellers but not so much for buyers. There has been a slight decrease since then, something that typically occurs in the fall and winter.
But what will happen in 2022?
Real estate can be very difficult to predict, something that 2020 proved. Many believed there would be a housing-induced recession during the peak of the COVID-19 pandemic, but instead, there was an unexpected book in demand. Experts are divided when forecasting whether or not the resilience will continue or the housing market crash will happen in 2022.
There could be a slowdown as the average Charlotte home prices aren’t keeping up with average incomes. However, some analysts and economists predict that the market will still be growing but offer ideas on how to take advantage of the trends whether you’re a buyer or a seller.
The good news for buyers is that the cost of construction is expected to come down. One of the primary reasons for the low inventory of new construction was the high cost of production due to the short-term problem affecting the manufacturing industry. It’s driven up building material prices (among other things), which add thousands of dollars to new home prices.
In the 2022 real estate market, those bottlenecks will be corrected with the continued economic growth so that many companies will be restocking their shelves. While prices are likely to be sky-high in the first quarter of 2022, after that, prices should begin to level or drop. They’re unlikely to be as high as they have been in 2020 or 2021, with spring and beyond forecasted to be the better time to buy one of the Charlotte houses for sale.
The double-digit acceleration that’s been seen in home values is predicted to fall significantly after the first quarter of 2022, but buying Charlotte homes still won’t be a walk in the park. Would-be buyers will want to ensure their credit scores and debt-to-income ratios are in tip-top shape and have plenty of cash for a down payment.
Sellers are still expected to have the advantage in 2022, but it won’t be as easy as it has been. The importance of pricing your home right can’t be underestimated – a realtor experienced in the market can help determine the right price.
Sight unseen purchases will decrease even more as the vaccination rates increase, which means curb appeal is a must for a good first impression.
One problem sellers have had that is likely to continue is that buying and selling a home simultaneously has been tricky. The process of finding the right home to buy could be slow, but if you earn enough cash by selling before buying, you may be able to come in first with the best offer.