Lake Wylie Real Estate Market

Is a Bi-Weekly Mortgage Right for You?

April 12, 2023 by lkw_df Leave a Comment

There are many different products you can choose from now when you take out a mortgage on your home. From traditional to FHA to VA to reverse to home equity to adjustable rate and many many more. We’re going to highlight the bi-weekly mortgage this time.

So, what is a bi-weekly mortgage? Just like it sounds, it’s one where you pay every other week instead of once per month. When you pay monthly, you have 12 payments per year. When you pay bi-weekly, you have 26 payments per year which ends up being the equivalent of paying one extra mortgage payment during the year, or 13 months of payments.

This type of payment can be great for anyone who gets paid every two weeks, but it can be tricky to budget for when you get paid monthly or twice per month. It takes discipline or just setting up automatic payments to make it work. Many people have this discipline and they set up this style of payment even though they have a traditional mortgage.

There can be great financial advantages to this style of payment because mortgages are based on compound interest. When you make extra payments, you pay directly against the principal on the loan so the interest that is calculated is less than if you don’t make extra payments. Over the life of a loan, you can save many thousands of dollars. This is different from a car loan where it is calculated on simple interest so you pay all of the interest regardless of if you pay extra principal or pay the loan off early.

When interest rates are high, like they are now, it can be hugely beneficial to pay extra on your mortgage. When your next payment comes due, you can look at your statement and see that your principal will be much lower and the interest portion of your next payment will be lower as well. Sometimes making extra payments can save you a lot of money so you don’t need to refinance to a lower rate.

If you are curious about what your home is worth or if it’s a good time for you to buy, give us a call at 803-831-8588. We would love to share our perspective on Lake Wylie and the Charlotte area. You can view current listings and create custom searches on our website here.

February Market Report

March 23, 2023 by lkw_df Leave a Comment

The monthly numbers have been published by the Canopy Realtor Association, and once again, we are seeing sales slip when compared to last year. This February in the Charlotte region, closed sales were down 27.8% from last February. This means just 2,731 homes closed in comparison with 3,783 last February. This continues the slow down trend we have been seeing due to rising interest rates in combination with rising prices.

New listings and pending sales are also down from last year. Inventory is climbing slightly so we now have a 1.2 month supply of homes. This is still down from a typical balanced market where 4-6 months of inventory are on hand. Sellers still have the upper hand in negotiations, but buyers are much less likely to pay over list price for a home. On average, sellers are only getting 95.3% of list price right now.

When you look at the Lake Wylie area, you see much of the same trend, except we are also seeing falling prices. Due to the small sample size, this drop in prices could be just a few waterfront homes difference, but it could be significant that prices, both median and average fell year over year. Median price is down 15.6% to $435,750 while the average price is down 3.3% to $519,818.

New listings, pending sales, and closed sales are all down from the same time last year. Inventory has risen to 117 homes, up from 62 last February. Sellers are getting an average of 95.7% of list price. Homes are also spending more time on the market before they sell. The average is now 47 days cumulatively from list until contract, up 95.8% from the 24 days average last February.

Housing Market Trends: Charlotte and Lake Wylie

March 3, 2023 by lkw_df Leave a Comment

While most homebuyers don’t think much about the trends of investors, it is worth noting that investors are buying fewer homes across the nation right now. We are seeing this trend in the Charlotte area as well. This means less competition for homes as investors typically have deep pockets and can outbid easily in a bidding war.

The interesting thing is that investors are not selling the homes they have right now. This means that their portion of the marketshare is staying stable. It could also mean fewer homes listed for sale by flippers further reducing the inventory of homes on the market. We will just have to see if this impacts the typically robust spring season.

One trend that we saw in full force during the Covid pandemic was the rise of all-cash offers. There are even many companies that will help you to make an all-cash offer with a financing clause on the back end of the transaction. This has helped many people to be able to compete in the crazy market we saw in 2021 and 2022.

It appears that the trend of all-cash offers winning contracts in multiple-offer situations is going to stay. Sellers really seem to like the flexibility of closing sooner as the process to acquire a new mortgage can be lengthy. Deals can also fall through if the financing conditions are not met. This leaves a seller with the earnest money, but the stigma of relisting their home.

If you are considering an all-cash offer, but you don’t have enough cash on hand, be sure to research your options for a reputable company to help you. We can offer you our advice on companies we have worked with in the past to help you make your decision.

Spotlight: Kings Grove Manor Lake Wylie Area

February 16, 2023 by lkw_df Leave a Comment

Near Lake Wylie and the McDowell Nature Preserve sits a great family neighborhood called Kings Grove Manor. There are great community amenities, lower South Carolina taxes, and kids are zoned for top rated Clover schools. They have easy to maintain small lots, and were built in the last few years so they look brand new.

To reach Kings Grove Manor, take Highway 49 across the Buster Boyd Bridge to the split at Handsmill Highway. Follow Handsmill Highway, and Kings Grove Manor will be on the left just after it splits from 49. This convenient location has you close to restaurants, shopping, and entertainment. Public boat ramps are nearby so you can enjoy all that Lake Wylie has to offer. Nearby highway access will connect you quickly with the Charlotte metro area.

Builder Mattamy Homes was the developer on Kings Grove Manor. They offered seven floor plans ranging from 1,700 to 2,700 square feet with 3-5 bedrooms and 2-3.5 bathrooms. Homes have two car garages and different architectural styles ranging from tudor to craftsman. These homes are bright and open with gourmet kitchens, flex spaces, home offices, and much more.

Community amenities in Kings Grove Manor include an outdoor pool, cabana, and walking trails. There is also a picnic area, recreation area, playground, and street lights.

In the past year, 10 homes sold in Kings Grove Manor for an average sales price of $411,840. There are currently no homes for sale in the neighborhood, but we can help you to be ready as soon as one of these homes is offered for sale.

January Market Report – Greater Lake Wylie Area

February 15, 2023 by lkw_df Leave a Comment

Inventory is on the rise, homes are staying on the market longer before they sell, but prices are still climbing. This is the story for yet another month in the Charlotte region. Inventory is up a whopping 55.8% from last January to this January, from 3,702 homes for sale to 5,768. The average days on market until sale rose from 23 to 46, or 100% increase. Median sales price rose from $349,700 to $375,000. That $25,300 increase represents an increase of 7.2% from last year to this year.

These numbers are provided by the Canopy Realtor Association from their Canopy Multiple Listing Service. When you zoom in to look at just the Greater Lake Wylie Area, you see that the same trend is holding true. Inventory rose from 103 homes last January up 43.7% to 148 homes this January.

Average days on market before a sale rose from 26 last year to 43 this year, an increase of 65.4%. Median sales price rose from $496,500 last year to $517,000 this year. This increase of $20,500 is up 4.1% from last year.

Closed sales are down year over year (43.4%) as are pending sales (19.8%) showing that we are behind the boom of the last year. We are seeing signs of the market picking back up with what looks like our typical seasonal trend with new listings climbing from 85 last January to 90 this January, a 5.9% increase.

As buyers and sellers get used to the new normal of higher interest rates, we are seeing renewed activity in the real estate market. New projects are still being announced and new construction is humming along.

It will be interesting to see if we finally get back to a balanced market where we have 4-6 months of inventory when we have been holding at such low inventory for years. We currently have a 1.5 month supply of homes, up from 0.7 month supply last year. A balanced market means buyers and sellers each have about equal footing in negotiations. Sellers have had the advantage for years with their peak advantage last year when they were getting over list price on most sales.

December Market Report – Greater Lake Wylie Area

January 11, 2023 by lkw_df Leave a Comment

The numbers are in, published by the Canopy Realtor Association. Once again, the Charlotte Region is seeing prices continue to climb as we are finally getting more inventory back on the market. The average home price was up 7.3% in December to $436,920. Inventory was up a staggering 54% from 4,206 homes for sale last December to 6,479 this December. This means that buyers have more choices, but they will still pay more as prices don’t seem like they are going to fall anytime soon. There are still discounts to be had however as the average home is now selling for 94.7% of list price instead of 100.2% of list price like last December.

When you look at the numbers for the Lake Wylie area, you see that there is definitely more inventory, 148 homes for sale compared to 126 last December, an increase of 17.5%. Prices however have gone down slightly from $568,701 last December to $548,539 this December. This decrease of just over $20,000 could be caused by just a waterfront property or two due to the small sample size. We’ll need to see the numbers going forward before we declare a price decrease trend.

One trend we can state for sure is that homes are spending more time on the market than last year before a sale. 52 days on average this year as opposed to 32 days last year during the height of the frenzy. This 62.5% increase is largely due to higher interest rates and the rise in prices. This has provided many more options for buyers and helped them so they don’t have to rush into such a big decision.

Buyers are paying on average 95.3% of list price so they are not having to make the types of concessions we were seeing last year. Buyers need no longer offer to skip inspections or appraisals. This brings more equality to contracts so buyers have more power and sellers don’t hold all the cards.

For information about buying and selling homes in the Lake Wylie Area, call us at 803-831-8588. You can view current listings and create custom searches on our website here.

Home Prices Holding/Charlotte Lake Wylie

December 21, 2022 by lkw_df Leave a Comment

For many parts of the country, we have seen prices go up with no end in sight to the growth. Charlotte has been one of the cities where we have seen consistent growth in prices for homes. This growth has been fueled in recent years by lack of supply of homes. With fewer homes available and more people moving to the area, we were at a critical point where homes were seeing multiple offers for over list price and buyers foregoing inspections and more to win contracts.

Experts are saying that many parts of the country are due for a correction. This would stabilize the market and keep consumer confidence high. But, those experts are saying that the Charlotte market won’t see a dramatic price decline that other places may see. This retention of prices is great for sellers, but will continue to stretch buyers. For people staying put, it can stretch them when it comes time for tax reassessments.

Existing home sales have been falling nationwide for the past nine months. The trend we are seeing in the Charlotte area is that pending home sales have declined. This shows buyer demand has slowed. Homes are staying on the market longer before going under contract. There is also more inventory of homes for sale.

These conditions usually coincide with prices coming down, but they are still rising in the area. In fact, the Canopy Realtor Association reports that the median sales price grew 16.9% up from $325,000 to $379,990 when you compare January through November of 2021 to the same period in 2022.

Job growth in the region should keep the area desirable, but with more inventory of homes for sale, buyers don’t just have to get the first home available, and they are less likely to lose out on homes due to multiple offers. Hopefully inventory will continue to rise and a price correction could follow.

For more information about buying and selling homes in the Lake Wylie Area, call us at 803-831-8588. You can view current listings and create custom searches on our website here.

November Market Report – Greater Lake Wylie Area

December 14, 2022 by lkw_df Leave a Comment

The real estate market in the Charlotte area is seeing a rise in inventory, but have not yet seen a corresponding fall in prices. The homes that are for sale are staying on the market longer before going under contract, and are now averaging 95.7% of list price received. This is down 4.5% from 100.2% at this time last year. What this means is that we are seeing fewer homes receiving multiple offers and homes are no longer expecting to sell for above list price. This is a great relief for buyers.

When you look at the numbers for the Greater Lake Wylie Area, you see most of the same trend. We are seeing a rise in inventory, from 149 homes for sale last November to 185 homes this November representing an increase of 24.2%.

Homes are staying on the market longer before going under contract. Last November they averaged 21 days, but this November we are sitting at 37 days. This can feel like an agonizingly long time to sellers who were used to the crazy market we saw last year, but homes are still selling even with higher interest rates on loans.

Homes are selling for less than list price on average. Last November, we were seeing many multiple offer situations driving prices to an average of 100.8% of list price. This November we are seeing fewer homes getting multiple offers and the average is now 94.5%. This can mean a big savings for buyers as a $500,000 home could have cost them $504,000 last year could cost only $472,500 this year, a savings of $31,500.

Prices however are still climbing, with the average year-to-date up 19.3% from last year. This increase was from $495,143 last year up to $590,523 this year, or an increase of $95,380. This still puts sellers in a great position even if they are not getting above list price, they are still selling their homes for more money overall.

For more information about the real estate market or about buying and selling homes in the Lake Wylie Area, call us at 803-831-8588. You can view current listings and create custom searches on our website here.