Realtor.com’s crystal ball for metro Charlotte’s housing market in 2017 shows continued strength, though likely at a notch below this year.
Specifically, the residential real estate group forecasts a 4.3% annual sales price increase for the Charlotte-Concord-Gastonia region as well as 6.3% growth in sales activity. That’s enough to register the Queen City at No. 21 on realtor.com’s ranking of the nation’s 100 largest metro areas. Both Raleigh and Durham rank ahead of Charlotte.
For perspective, the latest Case-Shiller report that was released earlier this week showed local year-over-year home price gains through September ranging between 4.2% and 6.2%. The highest annual increase so far this year was posted in September. And according to the Charlotte Regional Realtor Association, annual sales activity throughout the year has see-sawed, dropping as low as 10.6% in January and jumping up by 10.4% in August.
Atop realtor.com’s list of top 2017 housing markets is Phoenix-Mesa-Scottsdale, followed by the Los Angeles and Boston metro areas. Meanwhile, Chicago is expected to be the worst of the top 100 metros.
Raleigh, ranked at No. 8, is prime for a 4.2% price growth and 7.6% sales uptick, says realtor.com. At No. 11, Durham home prices are anticipated to jump 2.6%, while sales activity could soar 9%.
Overall, realtor.com — a consumer-geared residential site — projects slower, yet moderate growth, in 2017. The report notes that increases in mortgage interest rates could push first-time homebuyers out of the market. Realtor.com senior economist Jonathan Smoke added that he doesn’t expect the presidential election of Donald Trump last month to directly impact the housing market or economy by the end of the year.
“However, the 40 basis points increase in rates in the days following the election has caused us to increase our interest rate prediction for next year,” he said in a statement. “With more than 95% of first-time home buyers dependent on financing their home purchase, and a majority of first-time buyers reporting one or more financial challenges, the uptick we’ve already seen may price some first-timers out of the market.”