Charlotte is a rapidly growing city, with an average of 97 people a day moving into the city last year, said Anne Marie DeCatsye, CEO of Charlotte’s Canopy Realtor Association. According to DeCatsye, the city’s population has grown to 3 million in 2021, catapulting Charlotte to the 16th largest city in the United States.
Reflecting this massive growth, the value of real estate market sales reached around $24 billion last year. Median home prices were around $391,000, while average home prices were around $462,000. However, DeCatsye also pointed to Charlotte’s overall low cost of living, including “very friendly” businesses and individuals.
rates of 2.5% and 5.3%, respectively.
“Much to Raleigh’s dismay, I would say Charlotte is the economic engine of our state,” DeCatsye continued, pointing out that 9 of the Fortune 500 companies and 17 of the Fortune 1000 companies call the city home.
Charlotte’s many sports offerings — the Carolina Panthers, Charlotte Hornets, NASCAR and major league football — also make the city “a magnet for millennials,” DeCatsye said.
The city also has the 6th largest airport in the world and is strategically located near two ports in Wilmington, NC and Charleston, SC, making it a major logistics and distribution hub. Its central location benefits don’t end there, DeCatsye said, pointing to Charlotte’s all-season climate and proximity to mountains and beaches, making it a popular destination for top professionals and retirees.
Like most cities, sellers currently hold the edge in Charlotte’s housing market. With just 3,800 homes listed in a 16-county region and 24-day hover supply, the city’s inventory has fallen to its lowest level in 17 years. In May, inventories were down 12% year over year.
Buyers have little room to negotiate in a market like this, with sellers receiving an average of 102% of the asking price in May, raising affordability concerns, DeCatsye said. The public and private sectors will need to work together to solve this problem, but some builders are already requiring ownership purchases and the city has also introduced other plans for secondary suites.
Home sales have slowed in 2022 compared to the previous two years, which could allow Charlotte’s housing inventory to rebuild, she added. In May, new listings rose for the first time since November 2021, with inventory rising 20% overall from April.
“I don’t think we’re going to see a drop in prices, but I do think we’ll potentially see some slowdown with buyers as they become more discerning and concerned about price, the economy and interest rates.” , added DeCatsye. . “And we will see more of an increase in purchases in our outlying suburban and rural areas as prices will likely continue to stabilize.”