The market is currently going strong, but how long can we expect that to last?
The market right now is on fire—but how long will the market remain hot?
Inventory is generally low, so we are still in a seller’s market. In the higher-end price ranges (above $750,000), things are stabilizing, but for anything under $400,000, inventory is still scarce. For the low-end price range, you would be lucky to find anything to choose from at all. For those homes that do appear on the market, you better be prepared to put out an offer fairly quickly because homes are receiving multiple offers more often than not.
Around 40% to 43% of all properties in the Charlotte area that are priced above $750,000 or $800,000 are selling, which is an all-time high for us. But with around 50% of those homes not selling, like I said, the market is stabilizing. Hopefully that bleeds over into the mid- and lower-range markets.
Interest rates have crept up a little bit, and they are expected to continue to do so throughout the year. Despite that, I do not think that will slow anything down much; we still have low inventory and the economy is still generally hot.
With the exception of mid-range properties, which have begun to plateau a little, home prices have increased dramatically over the last three or four years. However, it is not as drastic as it was three or four years ago, which is a healthy sign that we will, hopefully, avoid another real estate bubble in the near future.
In summary, I do not see this red-hot market slowing down. Even if interest rates are creeping up, they are still extremely low compared to historical averages of the past 30 to 40 years.
If you have any questions, please feel free to reach out to me. I would be happy to help you however I can.