Charlotte Real Estate Market Update 8/16/22

If you have been following any news coverage at all, you have certainly heard of the looming market crash.

I’m sure you have questions like the rest of us, and worried it might be another 2008.

Well, I can tell you it won’t be 2008 all over again. There are 2 main reasons why the Real Estate Market will not see a crash like that anytime soon.

• Lending practices have change significantly. There are a lot more checks and balances put in place, and no longer can just anyone get approved for mortgage with limited to no documentation.
• Supply and Demand. This is the basis for any market, whether its real estate, stock market or even the baseball card market. The more supply, the lower the demand. The Less supply the more the demand. Currently, in Charlotte NC we have about 2.5 months of inventory. Which to give you some insight a balanced market is 6 months. We are quite a bit away from that, but who knows for how long.

With the interest rate increases over the past 6-8 months, we have seen buyers pull back from the market, while more inventory has been coming to market.

Gone are the days of Pricing your home wherever you want, and getting 20 offers over asking.

Now more than ever, it is important to price your home accordingly. There are a number of factors that go into that not just what Susy and John sold their home down the street for. Ill get into this more next week in my next article.

I’m here to tell you, if you are in Charlotte NC, you do not have to worry about a Real Estate Market Crash. What we currently are seeing is a Market Correction and this is not just happening in Charlotte but across the United States.

There will be some markets of the country that get hit harder than others. This is driven by a number of factors but to keep it simple, look at the local economy. Are there companies moving there? Are you seeing infrastructure upgrades? Is the population decreasing or increasing? If all answer to these questions are “no” or “Decreasing” then you are most likely headed to for a slow down in your market or even a crash.

The great thing about real estate is, they are not making more land (well unless you are in Dubai) so you will never completely lose the value of the property, it will fluctuate but over time Real Estate has been proving to be one of the best preforming asset classes. If you look at any 20 year time period, even all the way to back to 2008, you will see values have increased and homeowners and Investors have gained equity.

The other thing to think about especially if you just bought a home, is that you only make or lose money when you sell the home. So if you just bought the home and are not planning on selling for at least 5 years, you will inevitably see your equity increase over that time.

For more real estate market information, news and tips – follow along and let me know what you like to know more about!