In recent years, Charlotte has become one of the fastest-growing metropolitan areas in the region, with many of the surrounding communities growing alongside it. Huntersville is among those communities. Located 14 miles from Downtown Charlotte, Huntersville has evolved from a small town into a small city over the past two decades.
While Huntersville started growing in the 1990s, Huntersville’s real estate market experienced a major boom in 2021 and 2022, along with many other real estate markets in North Carolina. Coming into 2023, many homeowners wonder whether this trend will continue. Will Huntersville be a seller’s market or a buyer’s market in 2023? What will the local market look like in the coming years? Here is a comprehensive look at the Huntersville, NC, real estate market in 2023.
Huntersville market highlights of 2022
Like many North Carolina real estate markets, Huntersville experienced a competitive market during 2021 and 2022, with many people moving to the Charlotte Metropolitan area and some of its surrounding towns, including Huntersville.
As of December 2022, the median sales price in Huntersville was $491,000, a 22.6% increase over 2021. Overall, the Charlotte area has experienced a significant increase in property values as the area continues to grow. Since 2019, home values have appreciated by over 60.2% in the Charlotte-Concord-Gastonia area. As a result, Huntersville housing experienced a major boom in 2022.
With a population of around 65,000 residents, Huntersville is a medium-sized city that is steadily growing, with an annual population increase of around 2.3%. As a result of its proximity to Charlotte and its increased demand for real estate, Huntersville real estate experienced a seller’s market in 2022.
How the 2022 real estate market will influence Huntersville in 2023
As with many real estate markets nationwide, Huntersville experienced an unprecedented market boom during 2021 and 2022. This can be attributed to a few different reasons. First off, 2021 had record-low interest rates on mortgages. In fact, interest rates dipped to 2.65% in January 2021 and remained below 4% until September 2022, when rates began to climb again.
Another factor that contributed to Huntersville’s competitive real estate market is migration patterns. Charlotte is one of North Carolina’s most populous cities, with a metro population of around 2.6 million. As people move to Charlotte, many are also moving to the surrounding communities close to Charlotte as an alternative to big-city living, which resulted in more people moving to Huntersville in the last two years.
Along with people moving to Huntersville, another important factor to consider is the buyer group. During 2021 and 2022, younger buyers entered the housing market. During 2022, 43% of homebuyers were Millennials, which now comprise the largest demographic of homebuyers in the country.
These factors combined meant a greater demand for Huntersville, NC, real estate. This, combined with limited housing inventory, meant Huntersville homebuyers were in one of the most competitive real estate markets in over 15 years, which increased housing prices in the Huntersville area.
While this meant Huntersville was in a red-hot market during 2022, changes will likely occur in 2023. With interest rates rising to 6-7%, combined with economic uncertainties nationwide, this means that the real estate market could look very different in 2023.
Factors that will influence the local market
With some impending changes occurring nationally, many buyers and sellers are likely wondering what these changes will mean for the local real estate market. Will the market be negatively impacted by these changes? Will property values decrease in Huntersville, North Carolina? Will there be another housing crisis similar to what occurred in 2008?
During times of uncertainty, fear can take hold. One of the most important ways to combat those fears is to examine the factors impacting the economy. Are there any similarities between 2023 and the 2008 recession? How are they different?
Let’s first examine the causes of each. The 2023 economic uncertainties are a result of a few underlying factors, including limited supply chains, labor shortages, and high inflation rates. There is a heightened demand for workers to fill job roles. This goes against past trends where recessions meant massive job losses across the country. With this in mind, it’s important to figure out what caused the 2008 recession.
The 2008 recession was due to low credit requirements and lax lending standards, which resulted in lending institutions signing off on loans borrowers were not qualified for. This resulted in millions of home foreclosures across the country, which led to a domino effect of job losses and homelessness.
Because these two economic situations differ greatly, it is unlikely the 2023 real estate market will be similar to what we saw in 2008. In short, it is unlikely that we will experience another housing crash anytime soon.
Beyond interest rates, other factors determine how healthy a local real estate market is. This is heavily tied to the local economy. Homebuyers move to locations with robust local economies. If an area has positive job growth, you are more likely to attract young professionals to the area. Fortunately, Huntersville has an incredibly healthy economy, with an unemployment rate of just 4.7%, which is much lower than the national average of 6%. If you live in an area with a healthy local economy, your property values will continue to appreciate since there will always be a steady demand for quality real estate.
Should you invest in Huntersville real estate in 2023?
Taking all of this into consideration, many Huntersville buyers and sellers are wondering what this means for them. Is it a good idea to invest in real estate in 2023? Should you sell your home? Based on national interest rates and local market activity, buyer activity will likely slow down from where it was in 2022, but it will not halt completely. More likely, the Huntersville market will stabilize, and homes will spend longer on the market, giving buyers more options to choose from while searching for a new home. For sellers, property values will likely increase during 2023 and continue to appreciate in the coming years. As such, the 2023 real estate market will have a positive effect on both buyers and sellers in the Huntersville area.
Searching for homes for sale in Huntersville, NC? Trust Christy Walker & Associates to help you find your dream home. Whether you are searching for waterfront properties on Lake Norman or luxury homes, Christy is your go-to Huntersville realtor. Contact Christy today to begin your property search.
*Header photo courtesy of Shutterstock
*Header photo courtesy of Shutterstock