MINT HILL, NC – With Charlotte being the main market closest to Mint Hill, you might be wondering how a real estate collapse could impact the area. It’s pretty easy to see that if Charlotte struggles, it will impact the surrounding area.
However, just because the national real estate market struggles, doesn’t mean it will impact Charlotte. Often, when the real estate market goes through a down cycle, it impacts local markets differently. For example, in 2008, the east and west coasts were hit much harder than the middle areas of the country.
It’s important to consider how the predicted downturn in the national real estate market will impact Charlotte. Will it hit Charlotte worse than other areas or not as much? Let’s look a bit closer at what to expect.
Nationwide Real Estate Market
For nine straight months, the national real estate market has fallen. There are several experts predicting a 20% downturn in the market in 2023. On a national scale, it’s likely we are going to see even bigger changes to real estate than what we have already seen.
Charlotte Real Estate Market
While the national real estate market will likely see a big change, that doesn’t mean Charlotte will drop the same amount, or at all. The numbers in Charlotte are not the same as other large real estate markets across the country.
Charlotte offers more job growth currently than some of the other markets across the country. With higher mortgage rates, home sales have slowed in Charlotte quite a bit and homes are sitting on the market longer, too.
However, even with homes sitting on the market longer, the prices are still going up year over year. The market is shifting from a seller’s market to a buyer’s market, but that doesn’t mean it will collapse in the same way as other markets. It just means buyers can be choosier without so much competition in the market.
While Charlotte might not get hit the same way the nationwide real estate market gets hit, it will have challenges moving forward. Inventory will be one of the biggest challenges with not enough homes to meet the demand. There’s less than 2 months’ worth of inventory on the market right now, while a stable market would include about six months of inventory.
Part of the inventory issue is tied to the higher mortgage rates. Many potential sellers are thinking twice about selling, due to the higher rates. They already have a much lower mortgage rate and for most sellers, they’d also have to buy, which means taking on a higher rate.
While Charlotte might not see the same issues or the same downturn as other real estate markets across the country, it will likely see a downturn of some sort. The market will likely start to favor buyers more and more over the next year or so.
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