MINT HILL, NC – Whether you’re looking directly at the Charlotte real estate market as a whole or you’re looking just at the Mint Hill real estate market, you will see something similar coming. The Charlotte housing market and the surrounding areas have been incredibly hot. The Fed rate hike is meant to help cool down inflation, but how will that impact the housing market?
The Fed raised central bank interest rates by 0.75%, which might not seem like much, but it’s the highest increase since 1994. This caused mortgage rates to go up to the highest level in more than a decade to 5.78% for a 30-year fixed-rate mortgage.
While the higher rates are specifically designed to slow down inflation, the rate hike could also slow down the Charlotte and Mint Hill real estate market. However, those working within the local real estate market have stated they don’t see a slowing down market as a bad thing.
Longer Home Listing Times & Fewer Bidding Wars
If we had been in a balanced market, a slowdown might cause major issues. However, we have not been anywhere close to a balanced market. The market has been favoring the seller in a massive way.
Homes have sold faster than ever before and there have been huge bidding wars causing many buyers to pay over the asking price to get the home they want. Longer home listing times and smaller or even fewer bidding wars is actually a welcome change for most working in the Charlotte real estate market.
Before 2020, the market was already favoring the seller, but buyers were not paying over the asking price nearly as often. Returning to the way the real estate market was before COVID-19 isn’t a bad thing. This is likely where things are headed as the market slows down and cools off.
The Charlotte Real Estate Market is Cooling Off
Yes, the Charlotte housing market is certainly slowing down some, but it was super-hot before. Homes are staying on the market a little bit longer and few homes for sale are getting multiple offers as they were before.
Home showings are down and the interest new properties on the market are getting is also down. Some buyers will likely give up on finding a home in the Charlotte area due to the higher interest rates.
While it could be seen as a negative thing that the market is cooling off, it can also be seen as a good thing. The Charlotte real estate market might be headed to more stability due to the record-setting super-hot market cooling off.
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