The real estate market has been booming lately in the Charlotte region. Supply is low and demand is high. Interest rates are low spurring many people to enter the market. The pandemic shifted the market moving the spring surge into the summer and early fall instead. So what comes next?
With interest rates so low, first time homebuyers are driving much of the demand in the market right now. In a typical year first time homebuyers represent around 30% of the market. Right now, they represent 38% of the market. If interest rates remain low, they could keep driving growth, but if they rise, we may see many buyers drop out of the market for now.
Supply remains low, but we are already seeing the first indications of a slow down in the market. Condos are staying on the market a few days longer on average which is typically the first indicator of a slow down. We may next see this trend in townhomes, then eventually to single-family homes.
Many people have stayed in their homes during the first months of Covid and may list their homes next spring. If this happens, we could see a larger than usual spring season with fewer buyers for more homes. This could balance the market somewhat as we have had historically low inventory.
The thing to remember is that people always need homes, and the population in the Charlotte region is still growing so our market is likely to stay healthy for years to come. If you are interested in buying or selling a home in the Lake Wylie area, give us a call at 803-831-8588. You can view current listings and create a custom search on our website here.
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