CHARLOTTE, N.C. — The Charlotte real estate market has seen significant changes in recent months thanks to rising interest rates and shifting buyer behavior.
So what should you expect if you're looking to buy or sell a house this summer?
First, interest rates have skyrocketed over the past year. Everything from credit cards to home loans is affected, and many folks are looking at different options to avoid paying too much. The current average interest rate for a 30-year fixed mortgage is still over 7%, making it harder for many to afford a new house.
Charlotte-based Realtor David Hoffman told WCNC Charlotte's Jane Monreal he saw it coming before rates jumped again in 2024.
"I expect rates to fluctuate between 7%-8% for about six to nine months," Hoffman said.
With that said, Hoffman's sticking with another prediction he made six months ago.
"The good news, like we talked about in January, is if the home was flawless and inventory is low in that neighborhood with low supply, the homes are still selling very fast," Hoffman said. "But if the home needs any work, any updates and repairs, or if there's a lot of competition, there is no pain tolerance for that."
For those looking to buy, he's seeing a mixed response.
"What's happening now is you've got some buyers who say, 'OK, enough is enough,'" Hoffman said. "They're done. They're just cutting other costs out so they can buy a house. But you've got a lot of other buyers who just can't afford the house, they can't afford the higher interest rate and inflation has not come down."
Hoffman says buyers who can wait another year before buying will likely be rewarded with their patience.
"Inflation will come down, rates will come down and prices will come down," Hoffman said. "There'll be more options, more competition for the buyer."
Hoffman said Charlotte's real estate market has been and will continue to be a hot spot year-round. However, high costs and interest rates are challenging, especially for those moving from other states.
The bottom line? Both buyers and sellers have a lot to consider in an evolving market.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
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