The Charlotte Housing Market—A Silver Lining By David Kennedy
T
in the Pandemic
he housing market has been so hot recently that even a global pandemic couldn’t stop buyers in Charlotte and across the country. Black millennials made up the majority of home buyers by African Americans in 2020. It could be that the silver lining in the pandemic is that low mortgage rates could be causing this group to focus on wealth-building through home ownership.
Across all racial demographics, millions of millennials are emerging as potential buyers generating a historically high demand for homes. The phenomenon of remote working has also contributed to the buying surge. The popularity of Charlotte has made it a top five real estate market in the country. According to data from Canopy MLS, mid-year figures from June continue to smash records, showing 2021 sales across the Charlotte region
ahead of 2020 sales by nearly 17 percent. The average listing goes under contract after just 13 days on the market and the average sales price for a singlefamily home in the Charlotte region topped $350,900, which is 13 percent higher than the average sales price in August 2020. The median sales price, which is the best measure of price over time, reached $290,000, which is 13 percent higher than last August’s median sales price.
Happy days are here if you already own a home and want to sell, but what about the millennial buyers? From a buyer's perspective, it’s a different picture. Demand for housing is strong and the supply of housing inventory is low. Currently, there are 21 days of housing supply, which is critically low compared to a balanced market defined as 6 months of sales inventory. Once a house hits the market, buyers have an average of 13 days to put it under contract or someone else will buy it because multiple buyers submit bids to purchase homes routinely in this market. The Realtors® of the Canopy Realtor® Association help make sense of the statistics. They advise their clients of how the market reflects favorably or unfavorably for their situation. Thirteen days to buy a home is not ideal, but it is possible with a Realtor®. If your bid is accepted, you probably would have to offer to purchase that home above the listed sales price. But consider this, even paying more than the asking price and a 13-17 percent higher sales price, with record low interest rates, you could be paying less for more over the life of your home loan. As the Canopy Realtor® Association reflects upon its 100th Anniversary this year, we are mindful of our industry's past transgressions that resulted in racial discrimination. Today, African Americans are most likely to be faced with a dearth of homes on the market. In partnership with the building industry, Canopy is working with the City of Charlotte's Planning Department, within the Charlotte Future 2040 Comprehensive Plan, to introduce more housing to our market that would be available and affordable. With diverse voices among the decision makers, the path we forge will lead to a future where all housing needs are met. P November-December 2021 | Pride Magazine
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