Thinking about buying or selling a home in the Charlotte area? According to a new study, the Charlotte housing market is one of the most overvalued markets in the country.
According to an article from WCCB Charlotte, researchers with Florida Atlantic and Florida International Universities studied the Charlotte housing market. They found that prices versus the long-term trends led Charlotte to be in the top 10 for overvalue.
Nelvia Bullock, a realtor with Compass, told WCCB, “Many buyers are looking to gain a competitive advantage by offering on homes while they’re still in that coming soon status.” People are doing just about anything to get into the homes that they fall in love with during a tour. “They’re buying as is, they’re waving inspections, they’re offering appraisal gap addendums,” said Bullock.
Tom Kirby, a Charlotte appraiser, says some people are waving appraisals altogether to get into their dream homes. Or they are accepting the difference just to get inside the home they want. The increase in home prices has led to Charlotte having overvalued homes by more than 50%.
The Director and Professor of Real Estate at Florida International University Eli Beracha told WCCB, that right now all markets are relatively overpriced. Charlotte ranks as the 10th most overvalued city in America said Beracha.
This means that a $300,000 home can now go roughly for $450,000 in the area says WCCB. Beracha says that the increase is a combination of low supply and high demand happening at the same time. With so many people wanting to move to specific areas, homes are becoming harder to find and harder to buy.
Although prices seem to be insane right now, with mortgage rates expected to rise in the next few months there is a chance for a drop in home prices. The best way to prepare for the home buying process is to have loans ready and have the ability to move quickly.
Source: WCCB Charlotte
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