The real estate industry across the United States has experienced what can only be described as a wild roller coaster ride over the last 3 years. Here locally in the Charlotte region and across the Carolina’s we’ve weathered the storm a lot better than most of the country, but what’s next?
The year ahead of us is shaping up to be a very interesting one for the real estate industry and it’s time to prepare. Regardless of whether you’re looking to purchase a home, sell your home, or a combination of the two, this guide is designed to help you. Maybe you’re not looking to do anything this year and just want to know what to expect of the year ahead, we’re here to help.
I want to start by saying that I know hundreds of people, and I’m sure thousands more, that don’t believe what I’m about explain. Regardless of what you believe right now, I implore you to read this article with an open mind and understand that what I’m explaining is based on factual data and is not a sales pitch.
During the COVID pandemic real estate values shot up like a rocket across the country. The cost of building materials skyrocketed, and builders were forced to increase their prices nearly 50% in some cases. This drove up the cost of resale homes and combined with the lack of inventory prices shot up even more. But what often isn’t discussed is that although prices locally did increase at an unfathomable rate, we only now have reached the average home pricing of similar areas across the country.
I’ve spoken with hundreds of potential home buyers that can’t believe the cost of housing in the Charlotte Region and think the values are completely unrealistic and not sustainable. I’ve been told more times than I can count, “I’ll wait for pricing to drop to buy”, or “I can’t believe what they want for that house, I’ll never pay that”. Believe me, I’m guilty of it too. Then, I watch as that home I would never buy for that “crazy” price goes under contract in just a few days. Next thing I know it’s sold at or above its list price and those “crazy” prices just became even crazier.
Across the country home values fluctuate dramatically based on the region. We can’t compare NYC to rural Texas, but we can compare metropolitan areas and their local school systems to other comparable locations. For the sake of this comparison, we’ll focus on school systems that on Greatschools.org get an average of 7/10 or more so that we can compare the most sought-after locations in each city. We’ll then compare these areas against the median price per square foot of single-family homes.
According to Homebay.com, the median price per square foot for the nation in 2022 was $192 and $214 in 2023. In what many would consider to be a down year, the median price per square foot rose $22 in 2023, a far cry from the “prices coming down” commentators. Comparing the Charlotte region to other major metropolitan areas our average price per square foot in 2023 was $212, or $2 less than the national average. We also ranked right in the middle of the pack at 27th out of the 50 cities in the study.
We’re not the most expensive city, nor are we the cheapest. Essentially, the Charlotte region is AVERAGE by comparison of other major cities across the country. In 2018 the regions median price per sq ft was $133, which means the median price per sq ft increased $79 per sq ft or 59%. Like I mentioned before, there are a lot of you out there that don’t like this, think the pricing is crazy or that there’s no way these prices are here to stay. As plainly as I can say it, THEY ARE WRONG.
Yes, the Charlotte regions median price per sq ft jumped crazy fast, but we just barely broke the top 10 for growth in the study. Out of the 50 cities in the study, Charlotte, NC ranked 10th for growth, being beat out by cities like Nashville with 63% growth or Tampa at 72% growth. Both of which cities median price per sq ft is $45+ HIGHER than Charlotte.
The point is simple, families are moving here because it’s more affordable than most other cities around the country. Even now, pricing is considered AVERAGE or even LOW compared to other major cities around the country. Even if you leave out the school systems you still have to take into account the job market in Charlotte, the desirable climate, proximity to the ocean and mountains, and the recreational activities throughout the region. Not to mention easy access to other parts of the country with easy to access highway systems and a major airport hub.
Regardless of your opinions on home pricing, you must take into account the FACTS. Those that continue to convince themselves that home prices are too high and want to wait out the market are going to be left waiting. With interest rates on the decline and more projected rate cuts coming, now is the perfect time to position yourself in the market.
As you’re trying to prepare for the year ahead, my only advice is reach out to myself or my team and get the search started. By getting in touch with myself or my team we can position you to be highly successful with our team specifically trained in how to approach this market. We work with some of the best partners in the industry to ensure the highest rate of success for our clients. Call, text, or email us today with any of your real estate needs! 980-250-2795 and Matt@briggsamerican.com