State of Our Real Estate Market by Matt Lunsford:

In June of 2022 the Greater Charlotte Real Estate Market experienced a downward shift. Increasing interest rates, Inflation, cost of living and a reduction in buyer motivation led to what I would call a stagnation of activity. Listings in 2020, 2021 and the first six months of 2022 would yield an average of 20 showings per day on weekends and produce an average of 10 competing offers, of which 80-90% would be over asking price. The long-term result of this scenario created what I like to call the “Leapfrog Effect”. Much like children hopping over each other’s backs on a playground, pricing escalated without a care in the world. Here’s a real-world simplified example: Suzy Seller lists her home in March of 2020 for $400,000. Due to a high level of competition among buyers with above average financial resources, her winning offer is $30,000 over asking price and the buyer has voluntarily ignored their right to ask for repairs or put any weight what-so-ever on the lender’s appraisal (they have extra cash to make up the difference in the appraisal and contract sale price; $30k). Suzy’s home closes for $430,000. Suzy’s neighbor Sam sees this and decides to sell. He lists his home for $430,000 and the process repeats itself yielding a closing for him at $460,000. After 2 & ½ years of this, the homes in Suzy’s neighborhood have appreciated at an alarming 21% per year and Hannah Highmark has just closed on her home (Same as Suzy’s) for $585,000 in July of 2022! So, where does this leave us? How do we proceed? Well, if you didn’t sell your home in this sweet spot, get over it. Don’t dwell on those exorbitant prices your neighbors got! Guess what; they probably had to buy in the same high stakes market that they sold in and that’s the beauty of real estate as it pertains to a move or sell and buy. You are mostly always buying in the same market that you are selling in. Our current market is more like the markets I have seen over the last 17 years as a real estate broker. I no longer have to tell my buyer clients they don’t have leverage; I don’t have to tell them they lost out to another buyer even though they offered $30,000 over the seller’s asking price. We are seeing homes on the market for averages between 2 weeks to 1 month and buyers have leverage again with respect to home repairs, appraisals, and financing. This overall is a good thing! If there’s one thing I’ve learned in real estate, it’s that every situation is special and different. As always, I will continue to get my seller clients the absolute top dollar for their homes and will strive to get my buyer clients the lowest possible price and best deal on the homes they purchase. If you would like an in depth look at a potential sell or purchase, it will only cost you a bit of time. Call me personally: Matt Lunsford, Owner, 1221 Real Estate, LLC. 704-575-4320