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When does the Spring Real Estate Market Start in the Carolinas?

Monday, May 20, 2024   /   by Matthew Lawson

When does the Spring Real Estate Market Start in the Carolinas?


What does this mean will come from the FOMC in their March Meeting?





The trend of all housing market discussions for the last 2 years has been all about mortgage rates. What to expect? When will they drop? Will they ever go back to 2%? Are they going higher? You name it, we’ve read about it or discussed it. In October of 2023 we began to see signs of reprieve with rates dropping from their highest point at 7.79% to 6.6% in January. Now, rates are climbing, reaching 6.9% just last week. The big question now is how has this affected the housing market and what can we expect from here?





First, the housing market has been completely unphased by the rate increase this month, and nearly for the entire year of 2023. With our spring markets underway buyers and sellers are ready to do business. The average days on market in the Charlotte region is down to 20 days in January compared to 26 days in January of ’23. The average sales price has also taken a jump, up $14,450 (3%) to $409,450 in the same amount of time. In a year where interest rates reached their highest levels in 23 years the average price of a home still increased 3%.





Second, rental markets have been slipping compared to previous years with more homes coming on the rental market. Softer demand and the expectation of lower interest rates has more renters staying put and extending their leases to either a month to month or 6-month term in hopes of purchasing in 2024. Coupled with more institutional investor properties coming online, renting will likely still be the more affordable housing option in 2024.





How will the market be affected in the coming months?





Early 2024 data shows that housing market activity is increasing in our region, and it’s expected to continue into the spring and summer months. Homes are still appreciating in value even with high rates, and prospective buyers are learning that continuing to rent only makes their dreams of homeownership harder to obtain. Although renting may still be a more affordable option this year it is still a short-term solution for most, even though it costs more in the long run. It can be expected that homes will continue to increase in price at a relatively slow pace, between 1-3% again in 2024 which is in line with CPI Inflation Data.





What will the FOMC do in their March Meeting?





The FOMC has been studying the inflation data closely and with hotter than anticipated numbers released recently it has been projected the FED will stay rates in March. Previously the FED had announced that it would begin reducing rates this year starting in March, but the recent data has forced them to reconsider their plan of action.





Although it is still expected for the FOMC to reduce rates this year, the projections are now showing that interest rates may only decrease by .25 - .5% compared to the expected .75 – 1%. The FED is sighting the CPI data, including housing data, showing that consumers have been relatively unaffected by higher rates. The reality I believe is that consumers have been affected considerably but are cutting budgets and spending less to afford higher housing costs. Many are doing this with the hope and expectation of rate decreases in coming months, upon which they’ll refinance and balance out their spending.





THE REALITY





The reality of the market is housing prices are continuing to rise despite high interest rates and renting is only prolonging the inevitable. Renting has its place in the housing industry and benefits millions every year, and for many it’s the right option. But renting should always be looked at as a temporary solution on your journey to homeownership. Rates will come down eventually and I would much rather refinance a $400,000 mortgage than purchase the same home for $450,000.





As always if I can help you with your real estate needs in anyway, whether that be buying, selling, investing, renting, or managing your short- or long-term rental, I’m here to help. I can be reached directly at Matt@briggsamerican.com or 980-250-2795.


Briggs American Homes at Real Broker, LLC
Matthew Lawson
5960 Fairview Rd Ste 400
Charlotte, NC 28210
980-250-2795

Based on information submitted to the MLS GRID as of 6/13/2024 2:56 PM CST. All data is obtained from various sources and may not have been verified by broker of MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Some listings have been excluded from this website.
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