Predictions are starting to come in for the Real Estate Market for 2017. They all seem to point to good news for the Charlotte area. The Queen City is poised for growth yet again, but maybe not quite as much as 2016.
Standard & Poor’s Case-Shiller home price index report showed a 6.2% rise in prices in September over last year. This exceeds the national average of 5.5%. It puts Charlotte in 7th place among the top 20 metro areas in the US. Seattle leads this group with 11% growth.
Realtor.com is projecting a strong year for Charlotte next year. They forecast a 4.3% rise in home prices and a rise of 6.3% in sales activity. Realtor.com ranks Charlotte #21 out of the top 100 metro areas in the US. Phoenix-Mesa-Scottsdale sits atop their list.
It looks like the growth will be moderate and a little bit slower than last year per Realtor.com. There are a few reasons for this prediction.
The first is that interest rates are unsure at this time. There was a 40 basis point increase in rates after the election. An increase in interest rates would disproportionately affect first time homebuyers and can price some of them out of the market entirely. 95% of first time homebuyers rely on mortgages to finance the purchase of a home.
Second, there is a lack of inventory in the Charlotte area. In October there was a 23.1% decrease in the annual rate. This drives prices higher which can also price many homebuyers out of the market.
Realtor.com is predicting a few additional trends. 1. Millennials and baby-boomers will dominate the market in 2017. 2. A slowing of price appreciation. 3. Lower inventory. 4. Quick turnaround on sales. They also foresee price and sales increases in western states and millennials relocating to midwestern cities.
If you are thinking of buying or selling in the Charlotte area, call us at (704) 525-4045. Or check out our listings in and around the Charlotte community here.