What’s going to happen to home values over the next three or four years?
If you think your home value is going to drastically go up or down over the next three or four years, it’s actually probably going to be somewhere in the middle. I predict that we’ll see a price increase here in the Charlotte area, so let’s talk about the how and the why.
Tons of people are still relocating to the area, and for the next 12 to 24 months, I don’t foresee interest rates rising too much. If they stay around 3.5% to 4%, that still leaves a lot of margin for those who buy houses to rent out. It may even be cheaper than actual rent payments.
How high are home prices going to go in 2021? Well, we did see an increase similar to what we saw back in 2006 through 2008. During those years, we saw growth rates between 10% and 12% year over year. This year, it looks like we’re on pace for around a 9% increase in the Charlotte area.
However, don’t expect to have another 10% increase from last year to this year. We’ll see more moderate changes (3% to 4%) as more inventory comes on the market. Home sales are still up, but as more homes come on the market, some buyers are getting discouraged and don’t want to buy anymore. Over the next two or three years, the supply and demand in the market will become more stable than it is now, where there’s way more demand than supply.
If you have any questions about our predictions or would like to talk more specifically about your home values, don’t hesitate to reach out to us via phone or email. We’d love to help you.