What’s the market like?

The Charlotte, NC version!

I get this question a lot in my personal and professional life. Clients ask so they can judge if this is a good time to buy or sell. But in Charlotte, NC, there isn’t a bad time. We are one of the most sought after relocation places in the country. Businesses are relocating here everyday bringing hundreds of people at a time. I heard a statistic one day that said 4 people per day move to the Charlotte area. I personally have helped clients purchase homes in relocation, sometimes sight unseen. So understanding that this area is normally really successful in the market, I think it makes for a great barometer for the economy at large.

The Real Estate market and the economy are very closely related. Whether you are interested in buying, selling, or investing, the statistics tell a lot about the future and the present. Here are #3 reasons why:

Units Sold   Between May 1 and June 30, in Mecklenburg County, 2,649 single family homes were sold. In 2019, there were 3,320 single family homes sold.While it is a significant decrease from a pre-COVID era, it did not stop. Transactions were still happening. Sales can be done contact free. 

Median Price   This is the median price for counties surrounding Charlotte for single family homes sold from May through June. Union County seemsto be the most expensive at $399,481 on average. Mecklenburg is only slightly behind at $389,403. What I am most impressed at is Lincoln county. Even though only 236 units sold from the previous graph, the average price was $341,113. If I haven’t explained to you the West Side Story…you should call me! Especially if you’re investing!

Lending  Here’s the bad news. It’s all about the availability of funds. No matter what market you are looking at as a barometer of the general economy, if there are no funds available to purchase, the market does not grow. Stimulus checks were not big enough to buy a home and lenders are pretty strict after the housing bubble burst. Soooo, 70% of loans made on all those houses bought during May and June were conventional loans. What does that mean? Your credit score has to be 680+, you have to already have 20% of the purchase price in cash, AND you have to have 2 years of steady, full time employment. Those are tough requirements to meet in this COVID version of life! 

Why is this information really important? Other than helping you understand what to expect from the market if you want to buy or sell, it is an indicator of what the general economy looks like. My concern is not the motivation of buyers and sellers, but the motivation of banks to lend money. They are not making exceptions to the rules for people who have had an interruption in their job history. In other words, if you were terminated for no other reason than COVID, through no fault of your own, because the entire country shut down, you could have to start over on the 2 year clock of consistency. If you went back to work quickly and are currently at a steady 40 hours a week, they may let it slide. But if you are still out of work or your work hours or pay decreased, you are not eligible to purchase right now. That is making it very difficult to get people into homes. At this point, I don’t think we need more stimulus to add to the 4.???Trillion Dollars of debt. We need to update and revise regulations!!