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Real Estate: 5 Cities Well Positioned for Continued Price Growth – Business Insider

1. Charlotte

Charlotte is a rapidly growing city, with an average of 97 people per day moving into the city last year, said Anne Marie DeCatsye, the CEO of Charlotte’s Canopy Realtor Association. According to DeCatsye, the city’s population swelled to 3 million in 2021, catapulting Charlotte into the spot of 16th largest city in the US.

As a reflection of this massive growth, last year the real estate market’s sales value reached around $24 billion. Median home prices were around $391,000, while average home prices reached around $462,000. However, DeCatsye also highlighted Charlotte’s low overall costs of living, including “very friendly” corporate and personal income tax rates of 2.5% and 5.3%, respectively.

“To Raleigh’s dismay, I would say that Charlotte is the economic engine of our state,” DeCatsye continued, pointing out that 9 of the Fortune 500 companies and 17 of the Fortune 1000 companies call the city home.

Charlotte’s numerous sports offerings — the Carolina Panthers, Charlotte Hornets, NASCAR, and major league soccer — is also making the city “a magnet for millennials,” said DeCatsye.

The city also has the 6th largest airport in the world and is strategically located by two ports in Wilmington, NC and Charleston, SC, marking it as a major logistics and distribution hub. Its central location advantages don’t stop there, said DeCatsye, emphasizing Charlotte’s all-season weather and proximity to both the mountains and beaches, making it a popular destination for top professionals and retirees alike.

Like most cities, sellers currently hold the advantage in Charlotte’s housing market. With only 3,800 homes listed across a 16-county region and supply hovering at 24 days, the city’s inventory has fallen to its lowest in the past 17 years. In May, inventory was down 12% year-over-year.

Buyers have little room to negotiate in a market like this, with sellers in May receiving on average 102% of asking price — raising concerns about affordability, said DeCatsye. The public and private sectors will have to work together to solve this problem, but some builders are already requiring owner-occupied purchases and the city has also outlined more plans for accessory dwelling units.

Home sales have slowed in 2022 compared to the previous two years, which might allow Charlotte’s housing inventory to build up again, she added. In May, new listings rose for the first time since November 2021, with inventory rising 20% in total from April.

“I don’t think we’re going to see a decrease in pricing, but I think we potentially will see somewhat of a slowdown in buyers as they become more choosy and concerned about the price, economy, and interest rates,” added DeCatsye. “And we’ll see more of an increase in purchasing in our outlying suburban and rural areas as prices continue to probably level off.”

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