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Maybe I was totally ignorant before but it seems like home prices really shot up in the past 8 months. Prior to us moving here I can remember looking at homes and thinking "wow we can get a really nice house for $175,000" ...now I don't see really anything $225,000 that is in a good place or isn't a total reno which eats up the budget (nothing much under that price that that isn't in the direct flight path of Charlotte Douglas)
I have been told prices go up in the spring and then sort of level out/drop in autumn and winter. Is this true?
Do you think these new prices are the new norm or is this just the spring spike I hear about. We've been looking for a first time home (under $200,000) and most of them are in really gross parts of town (inside the 485 loop in North Charlotte) or right near the airport, like literally the backyard butted up to the runways.... I'm a little disappointed. We may have to put our home buying on hold. Our realtor hasn't had anything for us to even consider in 4 days. Our neighbor said he bought his town home for $60k a little over 5 years ago and just put it on the market for $159,900 not upgraded. He had an offer within hours.
Housing prices are often built on the job market and the wages typically offered in an area. More higher wage jobs and competition of housing drives up housing prices. I am comparing Charlotte's housing market to the housing market in the Triad (Greensboro- Winston-Salem - High Point area), and the more affordable parts of NC. I'm using this as an example because I'm a tad more familiar with it.
10-15 years ago housing only seemed slightly more expensive than the more moderately priced areas of the state. What would have cost $100,000 in most of the Triad or other affordable NC areas at that time would probably cost around $120,000 in a comparable part of Charlotte. However, the job market in Charlotte made that slight extra cost in housing worth it in most sectors of the economy, which helped drive the region's growth.
Now, housing seems much more expensive than in the more affordable parts of the state. While the $100,000 small starter home (we're talking detached- not a townhouse/condo) in an "okay, not the greatest, but at least not dangerous to walk around in" area may have risen to $130,000 in the more affordable areas, it is likely double (or significantly more as your example points out) the price in Charlotte now, while wages in Charlotte certainly haven't doubled.
What was an advantage in Charlotte (decent wages and relatively affordable housing) has been blunted by quickly rising housing costs (I believe Charlotte was listed as one of the areas with the fastest growing housing costs in the US). Again, it's not the highest cost area, but its rank in being a fairly affordable market has quickly eroded. The wages haven't kept up with the rising housing costs, so if someone were in a more affordable area (either in or out of NC), they would have to have a much more aggressive salary than what is likely still being offered to make it financially feasible to want to move there. At least it's not like Asheville or to some degree Wilmington with high housing costs and rock bottom wages, but the low cost housing advantage in Charlotte has eroded.
We know there are more expensive places to live (whether that's New York, or San Francisco, or Vale, or Paris), but that misses the point. There are lots of other comparisons what would make Charlotte real estate seem "cheap" (i.e. it isn't typically $900K for a 600 SF condo like San Francisco/NYC or doesn't have property taxes of $15K per year on a small 1,200 SF cottage like back on Long Island). The issue is that Charlotte used to be an affordable housing gem to go along with its strong economy, but it's not as much the case anymore. Even rents for very simple housing- nothing elaborate- are starting to turn Charlotte into more of a "either get hitched or get a roommate who works" kind of city for people at most salary levels. Or deal with it and be house poor (and have less for other financial goals). At least more than it used to be.
That's my opinion, anyway.
Here's an article that talks about housing costs from 2015, which has only gotten to be more of an issue:
This might be the new normal until some type of correction via a recession occurs. Their isn't much new starter home inventory coming on line, so it's basically higher end stuff & townhomes that are getting built. You may need to look outside Mecklenburg
The market has been hot the past 3 years. My in laws sold their house in a great school district in the month of January within the past three years in three days. A house sold in our neighborhood last February for a bit under ask in less than a couple of weeks. I know you don't need schools but a good school district is great for resale.
I was talking to a co-worker within the last month and he had listed his house in the university area and it sold to the 1st person that looked at it. He also listed it over spring break which he didn't even realize but was good on his part.
Prices are definitely up and new housing starts don't match the amount of people moving to the area. Compound that with increasing traffic, and areas in close proximity to job centers and Uptown are on fire as people try to minimize the commute. Everybody wants safety + good schools + good commute so those areas are now well over $280k often for a single family home.
Eventually I think high home prices will cause a "new Charlotte" to emerge that becomes the hot destination for people chasing affordability in the Southeast (Greenville, SC ; Knoxville, TN ; Greensboro-Winston Salem, etc...). Same thing happened as Atlanta got relatively expensive and people started looking at places like Charlotte and Raleigh that offered affordable homes, reasonable commutes, and good jobs.
There are some homes on the northern side of the metro, such as Highland Creek area, with SFH's in nice safe neighborhoods for under $200k. Most will go under contract within 48 hours so be ready to make an offer quickly if of interest. Here are some examples:
Prices are definitely up and new housing starts don't match the amount of people moving to the area. Compound that with increasing traffic, and areas in close proximity to job centers and Uptown are on fire as people try to minimize the commute. Everybody wants safety + good schools + good commute so those areas are now well over $280k often for a single family home.
Eventually I think high home prices will cause a "new Charlotte" to emerge that becomes the hot destination for people chasing affordability in the Southeast (Greenville, SC ; Knoxville, TN ; Greensboro-Winston Salem, etc...). Same thing happened as Atlanta got relatively expensive and people started looking at places like Charlotte and Raleigh that offered affordable homes, reasonable commutes, and good jobs.
There are some homes on the northern side of the metro, such as Highland Creek area, with SFH's in nice safe neighborhoods for under $200k. Most will go under contract within 48 hours so be ready to make an offer quickly if of interest. Here are some examples:
I think it’s a little bit of both things OP said, but moreso just prices going up. The market has been hot for several years but it does seem like prices might have risen faster the past year or so.
There are less buyers in the winter, but also less homes for sale. And the buyers that are out tend to be more serious. So you might be able to get a slightly better deal in the winter, but the other thing to keep in mind is interest rates, which if they keep rising could wipe out any savings on the price of the house.
Unfortunately there are a lot of people trying to buy in that price range, whether they are investors, flippers or first-time buyers, so anything habitable in a decent area under $200K is going quick.
Prices should come down at some point, but who knows when. Could be next year or 5 years from now.
This one is in a nice little neighborhood. I pass it every morning. The only drawback is the neighborhood is off of Eastfield Road and getting out in the morning is a pain depending on what time one would need to leave. Around 7 should be fine. 7:30-8:30 it might take some time.
Bottom Line: Ask any realtor about this and you'll learn that Charlotte real estate inventory is very low. This is why older homes as small as 1200 square feet and built in 1957 in "fringe " neighborhoods are selling for $220,000 before being flipped.
The opinion that the influx of new residents doesn't justify the housing price is ridiculous. Mecklenburg county is running out of room.
I lived in Highland Creek for 9 years. It is conveniently located to I-485, but I don't think a single home has a "view" of the interstate.
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