Discover Your Dream Lifestyle at Lake Norman. Everything you need to know to buy or sell your Lake Norman home with confidence. Get the Market Report
Are you wondering why home prices keep rising? Whether you’re buying or selling a home, understanding the concept of home appreciation is crucial in making smart decisions. That’s why today, I will discuss why home prices are expected to keep rising despite predictions of a housing market slowdown. Here are three market fundamentals you need to know:
1. Baseline annual sales. Home sales in the U.S. rarely drop below 4 million units annually. Even during tough economic times, there’s a solid core group of buyers who continue purchasing homes. These include buyers with significant equity, dual-income households, and cash buyers. Surprisingly, around 39% of U.S. homes are mortgage-free, meaning these buyers are less sensitive to interest rates.
2. Demand. Millennials, the largest demographic group in the U.S., are now in their prime homebuying years, adding significant pressure to the housing market. With over 72 million millennials entering the market, demand is already in place. While sales dipped in 2023 due to high interest rates, many of these buyers are simply waiting for rates to drop and will re-enter the market soon.
3. Inventory. The Charlotte area, like many markets, faces a housing inventory crisis, with inventory down 41% from pre-pandemic levels. Population growth and low mortgage rates have locked many homeowners into their current properties, with about 60% of them holding rates below 4%. This limited inventory, combined with growing demand, is keeping prices high and unlikely to fall in the near future.
So, what’s the bottom line? Home prices are poised to keep rising due to strong baseline sales, demographic demand, and a shortage of available homes. While affordability challenges persist, the fundamental factors driving price growth are here to stay. If you’re considering buying or selling and have any questions about the market, feel free to reach out to me anytime. Just call 704-806-2410 to schedule a consultation. I look forward to hearing from you!
-
Discover Your Dream Lifestyle at Lake Norman. Everything you need to know to buy or sell your Lake Norman home with confidence. Get the Market Report
-
Let’s Start the Conversation. Schedule a 1-on-1 session to discuss your Lake Norman Home goals. Book a Call
-
How's the Market?. Get Real-Time Market Updates by Zip. Get the Market Report
-
Sell With Confidence. Let me share how an experienced advisor can make the difference. Schedule a Time
-
Search Lake Norman Homes. Search all home in Lake Norman directly on the MLS with prices, schools, neighborhood data and more. Search Homes
-
Free Real Estate Newsletter. Get our latest Q&A, insights, and market updates to make smarter decisions. Subscribe Now
