A Real Estate Data Analysis by Matt Lawson, MBA
For there is no doubt, Waxhaw is growing. Small towns across America are booming and many are finding it difficult to understand what that really looks like. Let’s take a deeper dive into the Real Estate Numbers in our lovely, not so little, town.
The graph below isolates two very important data points to help show what’s really happening when a home sells in Waxhaw. For clarity this graph represents only homes sold in Waxhaw and not the surrounding areas of Lancaster, Marvin, Wesley Chappel, or Weddington. This graph helps us see both the number of listings (single family homes, Gray) and the average sales price of these homes per finished square foot (Orange).
Understanding why these numbers are so important is a key component into understanding just what has happened in our town this last year, and what we expect to happen for the remainder of the year and into 2022.
The trend lines of this graph are easy to understand, Prices are going up and Inventory is going down. In October of 2020 our average price per finished square foot of a single family home was $149, today it is $195. This means that over the last 12 months the average price per square foot has risen by 30.8%. To better illustrate, a 1,500 square foot home that sold in October of 2020 for $223,500 would sell today for $292,500 if priced solely off of the square footage. This is a $69,000 equity gain in just 12 months.
In October for 2020 Waxhaw had 350 single family homes listed for sale, but this number was drastically reduced to only 251 by December of 2020. Now, this is normal for this time of year as many are traveling and celebrating the holidays, but it shows us how quickly marketable properties sell this time of year. Moving into 2021 Waxhaw still has not reached more than 330 active listings in one month and currently as of today only 264 Active listings exist in all of Waxhaw.
Combining these two lines in one graph helps us to understand what to expect in the next few months as 2021 comes to a close. As we stand today we are already under last years listing volume and the market shows no signs of slowing down. It is expected that the same trends will occur for the remainder of the year meaning listings should fall from 264 listings to approximately 165-170. Because of this it can be expected that the average price per square foot will increase as it has for the last 12 months on average of 2.5% per month, reaching prices of over $200 per square foot by December.
What this means for Buyers
It’s understandable for buyers looking to buy in the Waxhaw to be frustrated with a lack of options, but this is the same for most of the country right now. In fact, all of the Charlotte region and Union county are seeing similar trends and historically low listing numbers. If you’re a buyer you’ll need to consider all of your options when making a purchase in the next few months. Most importantly however you need to consider your future opportunities as a home owner in our town. Waxhaw is a booming area and growing rapidly, so buying now could mean the opportunity for large equity gains in the coming years.
Many have told me that they are waiting for the market to crash, the bubble to burst, before they buy a home. What this graph shows us is that this market isn’t going anywhere in the near future. In the meantime prices continue to rise as do rents, and depending on your budget, living in Waxhaw may become unattainable in a few years. If you’re considering buying a home I would encourage you consider your options quickly and diligently.
What this Means for Sellers
As a seller you quite literally hold the keys to success in your hands. As most of us that live in Waxhaw have school aged children your options to sell may be limited, but if the desire is there you have options. If you’re considering a move up opportunity you may be able to use the equity from your current home to purchase your new property prior to moving, making the logistics a bit simpler. This is certainly a market to sell in if you’re considering it as most sellers are earning more for their homes due to the limited listings available for buyers to choose from.
As the town of Waxhaw continues to grow so will our taxes and congestion on the streets and in our schools. Regardless of your opinions on the growth, many homeowners have expressed frustrations with Waxhaw not being the town they remember. The town of Waxhaw is most certainly growing and moving in bigger direction and this will bring new life, new opportunities, and new challenges.
If you are considering buying or selling a home in Waxhaw, or just want to learn more, I would love to speak with you about your options and what I and Briggs American Homes can do to help you. I am always available at (980) 250-2795 or Matt@BriggsAmerican.com.
Matt Lawson, MBA is the Owner and Broker in Charge of Briggs American Homes, a real estate team at Keller Williams Ballantyne area. Matt lives and operates his business right here in Waxhaw, NC and is passionate about all things Real Estate.