2022 Charlotte Housing Market Predictions
Charlotte is one of the largest cities in North Carolina, and the demand for real estate has been growing rapidly due to the recent uptick in population. What does this mean for 2022 Charlotte housing market predictions?
Real estate industry experts project that the 2022 Charlotte housing market will see increasing home prices, rising interest rates, and more investment opportunities. If you’re looking to buy or sell your home, we recommend taking advantage of current residential conditions now. Daniels Real Estate Group can put you in touch with an agent equipped to skillfully navigate the local market.
In this article, we’ll discuss some of the predicted housing market changes that are expected to impact Charlotte in 2022!
What Are the 2022 Charlotte Housing Market Predictions?
As we waltz into another year of unprecedented times, it’s necessary to look at what’s to come in the housing market.
The top 5 housing market predictions for Charlotte in 2022 are:
1. Home Prices Will Increase
2. Interest Rates Might Rise
3. Buyer Conditions Will Improve
4. Charlotte Population Will Continue to Grow
5. Investment Opportunities Will Flourish
Let’s take a closer look at each of these projections. We’ll get a bit more granular below.
Prediction #1: Home Prices Will Increase
This prediction is nothing new; the price-per-square-foot of homes in desirable areas of Charlotte, NC, has been rising since 2019.
Home prices in Charlotte are expected to increase by about 5% in 2022. There is also speculation that luxury homes will see a surge of about 9% as heavy-hitters with more money and the desire for upgraded finishes continue to migrate from the Northeast to the Carolinas.
Only time will tell if this uphill trend will level out by the middle of the year.
Prediction #2: Interest Rates Might Rise
Industry professionals expect that in 2022, record-low interest rates will cease to exist.
However, it’s impossible to say how high they will go and when this may happen. Most predictions estimate that 30-year fixed mortgage rates will rise to around 3.7%, while 15-year fixed rates will be about 3.2%.
An expert economist, Selma Hepp, thinks that inflation, government intervention in the housing market, and consumer debt will all play a role in the rise of interest rates.
Prediction #3: Buyer Conditions Will Improve
Although home prices will continue to climb and interest rates may rise, buyer conditions are also projected to improve in Charlotte, NC.
Many people in 2020 and 2021 opted to hold off on moving due to the COVID-19 pandemic. While the current state of affairs is still uncertain, some predict that these sellers will now be ready to list in 2022. Additionally, the older population might seek to downsize, while younger generations are open to trading their city digs for a larger living space.
Regardless, with more homes on the market, buyers will have other options and additional wiggle room when it comes to price negotiations.
Prediction #4: Charlotte Population Will Continue to Grow
It’s no surprise that Charlotte, NC, tops the list of cities with one of the fastest-growing populations.
In fact, Charlotte has grown by almost 20% in the past 10 years. Furthermore, York and Lancaster counties are expected to dominate the 2050 projection of 50% population growth.
A little over 1/4 of the population is made up of millennials, with an average age of 30 years old. This makes it a prime market for realtors looking to target first-time homebuyers or those considering a place to raise their families.
Prediction #5: Investment Opportunities Will Flourish
The last prediction for 2022 is that investment opportunities will blossom.
Specifically, there are several areas of the city, like Mallard Creek and Eastland, where professionals are finding value in purchasing land due to its potential future value. Additionally, the renter market is hot. With plenty of young people and many Fortune 500 companies moving their headquarters to Charlotte, the rental market is expected to remain strong.
This also creates an opportunity for real estate developers who are expanding their inventory of income-producing multi-family homes that are easy to rent out and keep high occupancy rates.
For those that are still deterred from entering into the highly-competitive housing market, renting is the perfect solution.
THE ULTIMATE TAKEAWAY
What do these 2022 Charlotte housing market predictions mean for you?
Whether you’re looking to buy or sell– the time is now. High-interest rates are on the horizon, and home purchase prices are at an all-time high. Take advantage of the current market conditions while you can.
No matter which side of the transaction you stand on, it’s essential to work with a broker that is experienced and in tune with market trends. Here at Daniels Real Estate Group, we have all the resources to help you make the right decision when it comes to listing or purchasing your dream home.
Our seasoned agents are ready to help!