Home Prices Likely to Remain High Until 2026 – How Does This Impact Your R.E Plans?

According to JP Morgan Chase, housing affordability won’t return to Charlotte until the second quarter of 2028, assuming no change in the mortgage rate, or by the fourth quarter of 2026, assuming a 1% drop in mortgage rates.

In North Carolina, while the demand for housing is increased, new home growth is stagnant or below potential. Housing costs in North Carolina are still below nationwide averages as the price of buying a home has skyrocketed across the nation. Though new housing keeps in step with net job growth, retirees moving to North Carolina may contribute to unmet demand and rapidly rising prices.

Mandatory local, state, and federal housing policies force new home builders to designate some of their homes at below-market prices. This discourages new home builds, limiting the market supply and increasing prices. When homebuilders take a loss on new builds, they raise prices on existing units, forcing new buyers and renters to take the financial hit. According to the report, restrictions are also placed on accessory dwelling units (ADUs)

The federal government is putting tax dollars toward the issue. In 2022 North Carolina has $19.7 million dollars allocated in a Housing Trust Fund set up by the federal Department of Housing and Urban Development (HUD). The program is designed to “preserve and increase the number of affordable rental units available to extremely low-income households. Under this program, HUD provides funding to states for affordable housing rental projects.”

Welcome to this charming all brick home in the very sought after Sedgefield neighborhood. This beautiful corner lot boasts 4 bedrooms and 2 full baths with lots of privacy! Park road is always busy, luckily the driveway is located on Poindexter allowing easy enter/exit from the property during all times of the day… If you are interested in a home in of the most developing subdivisions in 28209, contact me for a private showing!

Allied Magnet Status Report*

Instant Reaction: Mortgage Rates, March 14th, 2024

Unfortunately for home buyers, mortgage interest rates ticked up again this week to 6.94%. While this is still below the rates seen in the fall of 2023, it impacts home buyers’ excitement about entering a spring market. For a $400,000 home, with a 20% down payment, the mortgage payment would be $2,116.

It is important to note that this is a unique housing market, where 32% are not financing their home purchase and can make an all-cash purchase—likely partly because of strong gains in housing equity.  For first-time buyers who are the most price-sensitive, the rise in mortgage rates poses a cause for concern as they may be priced out of the market…continue reading