2022 was another year to remember for real estate in the Charlotte area. The year started much like the previous ended, with tight inventory that positioned sellers for success, low-interest rates that attracted profound buyer demand, multiple offers, and homes that spent very few days on market before going under contract. As interest rate increases became the focus toward the end of 2022, Charlotte saw a slight softening which has allowed for a more "normal" market to come into view. After two monumental, "unicorn," years, experts agree that a normalization of the real estate market is ahead across the country.
“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market,” stated the National Association of Realtors® in their 2023 forecast.
For the Charlotte area, 2023 is poised to be another strong year, even with the recent increase in mortgage rates. In fact, Zillow recently named Charlotte as 2023's hottest housing market and Axios shared an additional take. Why? Forecasted strong annual home value growth, solid economic fundamentals, relatively fast-moving inventory, and plentiful likely buyers, according to the article.
“It’s a growing city that’s popular to move to," said Jeff Zucker, senior economist at Zillow, "but not too expensive for those looking to get a family-sized home."
Helen Adams Realty’s Local Market Perspective
2022 was a banner year for Helen Adams Realty, a year in which the firm celebrated 46 years in business. During the firm’s annual State of the Company meeting, Jeff Adams, President of Helen Adams Realty, shared with agents a look back at 2022 and projections for the year ahead.
“With an average annual home price appreciation since 1992 of 4.8%, Charlotte housing has been a wise investment for generations, and we are lucky to be in such a strong market,” Adams said. He added, “Helen Adams Realty remains the largest, independent firm in the area and we take pride in being family-owned and locally operated. With over $1.2 billion in closed volume in 2022, we are beyond proud of our agents and grateful, as always, for our clients and their trust.”
In addition to price appreciation and the aforementioned indicators, Adams' sees the following as reasons for an optimistic outlook: positive net migration into the area, the bulge in the millennial population, which equates to a steady demand for housing, and reasonable mortgage rates as compared to historical highs.
"Our challenge for the coming year as advisors to our clients will be to help them recognize that our market is transitioning from two unusual, "unicorn", years to a more normal market," Adams continued. "In a normal market homes take four to six months to sell rather than four to six days," he added with a grin.
Long-Term Growth Expected
As in years past, Moody’s Analytics has again also noticed Charlotte’s desirability, stating that, "the Charlotte-Concord-Gastonia economy will remain an above-average performer near term. Impressive gains in healthcare and tech will offset the slowdown in finance. Longer term, strong demographics and low business will attract high-quality investment and keep [the area] an above-average performer."
"[The area]'s population will increase at almost three times the national rate and will be among the fastest growing of the top 25 largest metro areas in the near term," Moody's article states.
With easy access to both the beach and mountains, Charlotte has something for everyone. With the addition of an MLS soccer team, 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. Moody's also notes 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.
Final Remarks
As is the case 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 79% 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 is proud to be woman-founded, family-owned, and locally operated, with second and third-generation family members carrying on their founders' legacy. The firm's commitment to providing the highest level of service to its clients and agents is as unwavering as ever as it heads into its 47th year of business.