2019 is shaping up to be another strong year for Waxhaw, NC and the Charlotte area real estate market with mortgage rates expected to remain reasonably low and an inventory that still can’t keep up with demand.
Unless a major catastrophe occurs, we’re likely at least another 1-2 years away from the next big market correction, and forecasters aren’t speculating it will be anything like the recession we experienced a decade ago.
So, what should you know about the local real estate market here in Waxhaw and beyond as we charge ahead in the new year? Read on for my top five predictions for the Charlotte area real estate market in 2019.
1. It will remain a sellers market. Despite what looks like an increase in inventory, primarily from builders, it will remain a seller’s market, but not in the same way it has been. In the past, sellers could price their homes at the top of the value range and higher andstillget multiple offers. While multiple offers aren’t a thing of the past – I was in one as the buyer’s agent just last week – they won’t be as common and buyers won’t be willing to push quite as high on price.
2. Price appreciation will slow compared to recent years. For the past several years, we have seen year-over-year price appreciation of 6% to 8% in many parts of Charlotte, including in several neighborhoods in Waxhaw, Weddington, and Wesley Chapel. The demand for housing still exists and people will continue to stretch their dollars to purchase a home, but eventually price increases will outpace the market. We saw signs of this in late 2018 when the Fed twice increased interest rates. Expect appreciation to be more in the 3% to 5% range for resale and it could take up to two years to more than break even when reselling a new construction home, especially if builders are still building homes in your neighborhood.
3. Increasing interest rates will decrease purchasing power for first-time home buyers and those with limited equity. That’s if the Fed continues to raise interest rates as they are expected to do. However, mortgage rates are currently at their lowest since April 2018 which should lead to a hot early Winter and Spring market. Additionally, mortgage rates aren’t connected to interest rates in a 1:1 relationship. Expect more buyers to pay basis points to buy down their mortgage rates for lower monthly payments in 2019.
4. People will continue to move to the Carolinas. And for many good reasons. First, big companies like Honeywell and LPL Financial moving their headquarters to areas like Charlotte and Fort Mill, respectively, leads to an influx of people moving here for work. People also continue to flow into the Charlotte area from all over the country for our milder climate, slower pace of life, and better affordability.
5. Threat of recession will keep some buyers on the sidelines.If you’re going to sell your home, it’s better to do so in a strong market when you can get the most out of your investment, AKA, your house. Though we don’t know when it’s coming, the threat of a potential recession could have savvy buyers waiting for an economic downturn before they purchase again. However, the economy is strong now and there’s no shortage of demand for housing at all price points in the Charlotte market, and more specifically, in our Union County market.
Have questions about the real estate market in general or about a specific property? Contact the author and local Skyecroft Realty Group Realtor, Jimmy Grappone, at jgrappone@skyecroftrealtygroup or 980-298-9385 today. He is licensed in NC & SC.