September 2024 Market Trends

Welcome to our latest rental market trends update, where we examine the current landscape for investment properties and rentals. As we provide the trends of the present month, we will also share comparisons with the same period in previous years. This market analysis focuses on Single Family Homes, Condos, and Townhomes in the dynamic Charlotte area. Whether you own rental properties or are considering entering the market, our analysis offers valuable insights into year-over-year trends.

In the ever-changing rental market, understanding shifts in demand, pricing, and property availability is crucial for property owners and managers. Join us as we break down the data to offer insights into the rental market’s current state, providing essential context for those managing or investing in rental properties. Whether you’re focused on growing your portfolio, optimizing returns, or staying informed, we hope this overview proves valuable.

Median Days on Market

The median days on market for single-family homes, condominiums, and townhouses in the Charlotte area have shown a steady increase since early 2023. In March 2023, the median was 7 days, rising to 12 days in September 2023 and then 13 days by September 2024. This increase suggests a softening in the market, with properties staying available for longer.

For rental property owners and managers, this trend may signal a more tenant-friendly environment. Longer days on market could suggest less competition for buyers, but it could also mean that potential rental properties might take longer to sell or transition between tenants. Monitoring this trend closely can provide valuable insights into how quickly properties might be rented out or sold.

Months Supply of Homes

The months supply of homes for sale in the Charlotte Metropolitan Area has steadily increased over the past few years. In early 2021, the market was tight, with supply as low as 0.8 months, indicating strong demand and limited availability. By 2022, supply remained low but started to climb, reaching 1.3 months by the end of the year. This upward trend continued in 2023, reaching 1.6 months, and by September 2024, supply hit a high of 2.1 months.

For rental property owners, this increase in housing supply could signal more options for potential tenants, meaning landlords may face stiffer competition in attracting renters. As inventory rises, property owners may need to offer competitive pricing and maintain quality to secure leases. Additionally, this could present a strategic opportunity for investors to acquire properties as the market adjusts.

Homes for Sale

The data shows a clear trend of increasing inventory of homes for sale in the Charlotte Metropolitan Area over the past few years. In early 2021, there were 5,075 homes for sale, and by the end of 2021, the inventory had dropped to 3,140. Throughout 2022, inventory slowly rebounded, reaching 4,479 by the end of the year. This trend of increasing supply continued into 2023, where the number of homes for sale reached a high of 5,141 by May and then slightly declined towards the end of the year, with 4,547 homes available by December 2023.

As we move through 2024, the number of homes for sale has risen significantly, with September 2024 seeing 5,687 homes on the market, a notable increase compared to prior years. For rental investors, this surge in inventory could lead to more opportunities to purchase homes at potentially favorable prices. However, it also suggests a more competitive rental market, where landlords may need to differentiate their offerings to attract tenants in a market with more housing choices.

Sales Price

The median sales price in the Charlotte market has shown consistent growth from early 2021 through September 2024. In January 2021, the median sales price was $290,000, and it steadily increased throughout 2021, reaching $336,500 by December. This upward trend continued through 2022, with the median price climbing to $392,000 by the year’s end. The rising trend highlights the increasing demand for homes, likely driven by low supply and strong market competition.

As of September 2024, the median sales price reached a plateau of $400,000, maintaining this level since July. However, there was some fluctuation in 2023, with prices hovering around $393,000. The current stability in median sales price suggests that the market may be balancing out after a period of growth, providing potential opportunities for investors and renters to find relatively stable price points. This could indicate that buyers and renters need to act quickly before the market sees any potential future increases.

Summary

The data for September 2024 highlights key trends in the Charlotte rental market, offering valuable insights for rental property owners and renters. The inventory of homes for sale continues to rise, reaching 5,687 units, compared to 4,761 in September 2023. This reflects a growing availability of homes in the market, which can influence rental opportunities for investors and renters alike. However, the months of supply of homes for sale has increased as well, from 1.6 months in 2023 to 2.1 months in September 2024, indicating a more balanced or slightly favorable market for renters. This could suggest that rental property owners may face longer vacancy periods if they are not competitive in pricing or offerings.

Meanwhile, the median sales price has leveled off at $400,000, showing signs of stabilization after years of growth. Property owners should take note of this price stability when evaluating rental pricing and long-term returns on investment. As these market trends unfold, rental property owners who stay proactive with their property management may find better ways to optimize their portfolio performance, particularly in terms of attracting reliable tenants and reducing vacancy periods.

If you’re a property owner looking to maximize your rental potential, now is an ideal time to explore how professional property management can enhance your investment strategy. Reach out to learn more about how we can help you adapt to these evolving market conditions and make the most of your rental properties.