Between the strengthened seller's market and fervent buyer demand, driven by changes in housing needs due to the pandemic, 2021 was a year to remember. It was a powerful year for most housing markets across the country, and experts predict those markets that remained hot throughout 2021 are poised to carry the same momentum into the new year. At no surprise to the team at Helen Adams Realty, amongst that list was our very own Queen City.
Helen Adams Realty’s Local Market Perspective
2022 was a banner year for Helen Adams Realty, a year in which the firm celebrated 45 years in business. In fact, each of the last seven years has been better than the one prior to it. During the firm’s annual State of the Company meeting, Jeff Adams, President of Helen Adams Realty, shared with agents a look back at 2021 and projections for the year ahead.
“Charlotte housing has been a wise investment for generations, with average home price appreciation of 4.4%, and we are lucky to be in such a strong market,” Adams said. He added, “Helen Adams Realty is now the largest, independent firm in the area and we take pride in being family-owned and locally operated. With over $1.4 billion in closed volume in 2021, we are beyond proud of our agents and grateful, as always, for our clients and their trust.”
In researching the opinions of nine industry experts Adams found that, overall, they predict a strong housing market for the foreseeable future in Charlotte, even when mortgage rates increase. Why? Low mortgage rates as compared to historical highs, work-from-home options allowing for expanded search areas, and the bulge in the millennial population and their demand for housing.
According to True Homes’ Migration Trends, North Carolina and South Carolina are both top destinations for those moving out of high-cost markets in the Northeast and on the West Coast. This is due, in large part, to the area’s affordability, which is determined by the housing cost to income ratio. Charlotte ranks as one of the most affordable, at 26%. The Burns Affordability Index ranks Charlotte as the 8th most affordable market among the 33 top markets across the country.
Long Term Growth Expected in the Surrounding Areas
Moody’s Analytics has noticed Charlotte’s desirability as well, stating that long term, the Charlotte-Concord-Gastonia economy will continue to be an above-average performer due to strong demographics and low business costs which will attract investment opportunities for years to come.
With easy access to both the beach and mountains, Charlotte has something for everyone. After announcing an MLS soccer team with their inaugural season kicking off soon, the city now boasts four professional sports teams, the U.S. National Whitewater Center, and three lakes for local entertainment and added desirability. Additionally, Charlotte is quickly establishing itself as a rising tech hub with a healthy job market in industries like technology, as well as finance, education, government, and healthcare. They also state that the increasing tech presence attracts new workers and business investment and in turn, low living costs and favorable demographic trends, including strong, positive net migration.
National Trends Point to A Strong Market
Wells Fargo forecasts that home price appreciation will slow in 2022, in comparison to recent history, but they do not expect to see any meaningful decline in home prices. They also foresee a slight rise in mortgage rates but expect they will still be at a historically low rate of 3.7% by the end of 2022. According to the National Association of REALTORSⓇ, one-third of buyers purchased a home above the asking price in 2021, with first-time buyers making up 34% of all buyers in 2021.
New Construction activity will remain strong but continue to be limited by the combination of high oil prices, rising material prices, and labor shortages. The National Association of Home Builders (NAHB) & Wells Fargo say that, on net, we will see an increase of 25% in the volume of single-family construction over 2019. The growing backlog of projects will keep builders busy for at least a few years to come.
As with any big city, trends vary by neighborhood, price point, housing type, and other factors. “Our agents have hyper-local knowledge and expertise and focus on providing the highest level of customer service,” Adams shared during the meeting. “We can see that reflected in the fact that 75% of our agents’ business comes from repeat and referral clients. That is a tremendous statistic and you’re all to be commended on a job well done!”
Founded in 1975 by Helen Adams, Helen Adams Realty has excelled in providing adept real estate counsel, transactional expertise, and personalized customer service for more than 45 years. Second and third-generation family members, led by Jeff Adams, continue to successfully operate four offices serving Charlotte’s finest neighborhoods with a stalwart commitment to perfecting their craft.