The latest forecasts for the Charlotte, North Carolina real estate market through 2018 suggest that home prices could rise more slowly over the months ahead. In a sense, this could be viewed as a kind of “normalization,” considering that prices have been rising well above household income (and historical norms) for the last couple of years.
Here are the latest predictions and forecasts for the Charlotte housing market, curated from several key sources.
Charlotte, North Carolina Housing Forecast for 2018
According to the real estate information website Zillow, the median home value for Charlotte, North Carolina was around $189,000 in September 2017. That represented an increase of 9.1% from the same month a year earlier.
Historically, going back several decades, home prices in the U.S. tend to rise by around 3% to 5% annually. That means house values within Charlotte’s real estate market have risen well above historical averages for the last year or so.
The economists at Zillow also provided a forecast for the Charlotte real estate market extending into the fall of 2018. According to their latest production, they expect home values in the city to rise by another 4.4% over the next 12 months. (This forecast was issued toward the end of September 2017 and extends into the same month of 2018.)
Granted, this is just a forecast from housing analysts and economists. It is the equivalent of an educated guess. So we probably shouldn’t get too wrapped up in the exact numbers being projected here.
The two important takeaways are:
- Home prices in Charlotte are expected to continue rising into 2018.
- Economists are predicting smaller year-over-year gains over the coming months.
A Popular City for Millennial Home Buyers
Charlotte real estate market forecasts vary slightly from one source to the next. But the general consensus appears to be that home values will continue to rise over the coming months. Population growth has something to do with this, as it brings more buyers into the market.
Charlotte, North Carolina is particularly popular among millennials.
According to a September 2017 report from SmartAsset, Charlotte was the number-one city where millennials were moving during 2015. The company analyzed Census Bureau data relating to immigration and emigration, and “compared the number of persons between ages 20 and 34 moving into a city and compared it to the number moving out of the city.”
Based on their analysis, they found that Charlotte, North Carolina had the largest influx of millennials – more than any other city in their study. Also topping the list were Seattle, Washington and Oakland, California.
Condo Prices in Charlotte Are Soaring
According to a recent report from the Charlotte Observer, condo prices in the local housing market were rising rapidly in 2017. This trend is expected to continue to some degree into 2018.
As usual, it’s a supply and demand story. Within the Charlotte real estate market, there is simply not enough construction of new condos to meet the current level of demand from buyers.
According to Scott Russo from the Charlotte-based McDevitt Agency:
“The lack of new for-sale condo inventory remains a void in the Uptown market. Because of the limited inventory environment that exists and no new projects that have been announced, I see the condo market continuing to turn higher.”
He added that condos listed below $400,000 were selling particularly fast.
The bottom line: Charlotte, North Carolina housing market forecasts for 2017 through 2018 suggest that home prices will continue to rise to some extent over the coming months. With that said, we could see a bit of a cooling trend in terms of year-over-year appreciation. The condo market remains hot as well, especially within the lower price range where first-time home buyers tend to purchase.
Disclaimer: This article includes forecasts and projections for the Charlotte real estate market through 2018. These forward-looking statements were provided by third parties not associated with our company. We have gathered them as an educational service for our readers. MetroDepth makes no claims or assertions about future housing conditions in Charlotte or elsewhere in the U.S.