Charlotte, N.C. Housing Market Forecast 2025: Getting Better for Buyers

On this page: An assessment of current real estate market trends in the Charlotte, North Carolina metro area, along with a housing forecast extending into 2025.

There’s good news for Charlotte-area home buyers in 2024. This real estate market has experienced a steady increase in inventory over the past year or so, meaning there are more homes available these days.

And while home values have risen in recent months, forecasters do not expect any rapid or significant home-price spikes in the foreseeable future.

Overall forecast: Charlotte currently offers a kinder, gentler housing market for home buyers, thanks to inventory growth and a slower pace. Gradual and modest price gains are expected through the rest of 2024 and into 2025.

Charlotte Housing Market Gains Inventory

Like many local housing markets across the U.S., the Charlotte-Concord-Gastonia metro area has become more buyer-friendly over the past 18 months or so.

Today, house hunters in the area have more properties to choose from along with a generally slower pace of sales activity. In other words, buying a home in the Charlotte area is a lot less stressful today than it was two or three years ago.

But it’s not just Charlotte. Housing market inventory has risen in most cities across the U.S., with some of them returning to pre-pandemic levels.

According to a July 2024 report from Zillow:

“Home listings are piling up as buyers step back from peak home shopping season faster than normal. As competition cools, sellers are stepping up price cuts to try and entice buyers struggling with affordability.”

They went on to state that the real estate market is starting to look like it did before the pandemic, when home buyers had more negotiating power.

According to a recent report from Realtor.com, the total number of active real estate listings in the Charlotte metro area rose by 48% from June 2023 to June 2024.

As of summer 2024, this metro had nearly a three-month supply of homes for sale. That was a big improvement from the “housing drought” that occurred during COVID. So things are steadily improving for buyers, a trend that could carry into 2025 as well.

Forecast: Home Prices Will Continue to Climb

According to Zillow, the median home value across the Charlotte-Concord-Gastonia housing market rose to $387,000 in July of 2024. That was an increase of 4.9% from a year earlier.

(That’s for the entire metropolitan area. The city of Charlotte had a slightly higher median price point of $403,226, as of July.)

The charge below shows the median home value for the metro area going back to 2016. You can see where prices skyrocketed during COVID before slowing down in 2022. The very same pattern occurred in most housing markets across the country during that timeframe.

Zillow’s forward-looking forecast predicts that the median price point for Charlotte will rise by around 2.3% during the 12-month period from June 2024 to June 2025.

This means they expect a slower rate of price growth in the months ahead, compared to the past few years.

And that’s more good news for home buyers. A slower rate of appreciation reduces the urgency among buyers. It gives house hunters more time to research and consider each individual property, prior to making an offer.

In contrast, when house values rise rapidly, buyers often feel pressured to make a purchasing decision. There’s less time for due diligence and a greater chance of making mistakes.

Prediction takeaway: The Charlotte housing market could experience more moderate price growth through the end of this year and into 2025, the best-case scenario for local buyers.

Overall, a Better Market for Buyers in 2025

The increasingly buyer-friendly market conditions mentioned above are expected to continue into 2025. And things could improve even more, especially if mortgage rates drop further.

Over the past couple of years, we’ve heard a lot about the mortgage rate “lock-in effect” and how it prevents would-be home sellers from listing their properties.

Homeowners with low mortgage rates are less likely to sell and move to a new home because they would have to give up their lower rates. Today’s mortgage rates are more than twice as high as they were just three years ago.

But 30-year mortgage rates have declined from their May 2024 peak of 7.22% and are now hovering under 7%.

Some analysts expect rates to decline further over the coming months, which in turn could loosen up the lock-in effect and bring even more homes onto the market.

In their latest housing market outlook report, published on July 19, officials from Freddie Mac wrote the following:

“This [Federal Reserve] rate cut, if it occurs, could lead to a slight easing of mortgage rates in 2024, offering a glimmer of hope for prospective buyers. We expect mortgage rates to decline further in 2025 to below 6.5%, further stimulating the housing market by making homeownership more affordable.”

Prediction takeaway: The Charlotte, North Carolina real estate market could become even more favorable for home buyers later this year and in 2025, with lower rates and more inventory.

Population Growth Is Fueling Demand

According to a March 2024 report from the U.S. Census Bureau, Charlotte was one of the ten fastest growing metropolitan areas from July 2022 to July 2023.

To quote their report: 

“Other metro areas that experienced notable population gains between 2022 and 2023 included Atlanta-Sandy Springs-Roswell, GA (68,585); Orlando-Kissimmee-Sanford, FL (54,916); Tampa-St. Petersburg-Clearwater, FL (51,622); Charlotte-Concord-Gastonia, NC-SC (50,458); and Austin-Round Rock-San Marcos, TX (50,105).”

The Charlotte metro area is now home to more than 2.8 million residents. It’s the largest metropolitan area in the Carolinas and fourth largest in the southeastern United States, and it continues to grow.

This growth trend increases the demand for housing on both the purchase and rental side. It also puts upward pressure on home prices. This is partly why recent forecasts for the Charlotte real estate market predict steady price growth into 2025.

About the Charlotte-Concord Metro Area

Here’s what you should know about the Charlotte-Concord metropolitan area if you’re planning to relocate and/or buy a home there in 2024 – 2025.

The Charlotte metro area is a major economic and population center located in the southeastern United States, mostly in North Carolina but extending into South Carolina. It’s primarily centered within Mecklenburg County, N.C.

As mentioned earlier, the metropolitan population rose above 2.8 million residents last year and continues to grow. It covers approximately 3,020 square miles

The region is part of the Piedmont, characterized by rolling hills. The Catawba River runs through the Charlotte metro area and provides both recreational opportunities and water resources.

Major Cities in the Area

The most populous cities are shown below, with their approximate population figures as of the last census. We’ve also included the median home value for each city, as of August 2024.

City	Population	Median Price
Charlotte, NC	923,164	$403,226
Concord, NC	111,863	$381,920
Gastonia, NC	85,080	$277,934
Rock Hill, SC *	75,000	$328,674
Huntersville, NC	65,715	$547,042
Kannapolis, NC	59,321	$275,739
Mooresville, NC	42,000	$479,164

* Note: Though it’s located in South Carolina, the city of Rock Hill is part of the Charlotte metropolitan area.

As you can see, home prices vary widely among the major cities in the area. Home buyers who have some flexibility as to where they live will benefit by expanding their search box. 

Cost of Living Compared to National Average

• Cost of Living Index: Overall, the cost of living in the Charlotte metro area is slightly below the national average (2% lower according to Payscale, and 3% lower according to Redfin).
• Housing: “Charlotte’s median sale price is 1% higher than the national average,” according to Redfin. According to Zillow, the median home value for the Charlotte-Concord-Gastonia metro area was $386,866 in July 2024, compared to a national median of $363,438.
• Utilities and Groceries: Generally in line with the national average.
• Transportation and Healthcare: Typically close to or slightly below the national average.

Major Employers in the Area

Banking and finance make up a large part of the local economy. Charlotte is a major U.S. financial hub, second only to New York City. Bank of America, Wells Fargo, and other major financial institutions have headquarters or major operations in the area.

• Banking and Finance: Major employers include Bank of America, Wells Fargo, and Truist Financial.
• Healthcare: Atrium Health and Novant Health are significant healthcare providers and employers in the region.
• Manufacturing and Energy: Duke Energy, Nucor, and Honeywell have substantial operations in the area.
• Technology and Innovation: Companies such as Red Ventures and LendingTree are part of the growing tech sector in Charlotte.
• Retail and Distribution: Lowe’s has headquarters in nearby Mooresville, and the region has significant distribution centers for companies like Amazon and Walmart.

According to Fortune magazine, the region is a prime location for corporate headquarters and home to 18 companies on the Fortune 500/1000 lists.

Disclaimer: This report contains housing market predictions and home price forecasts for the Charlotte metro area extending into 2025. Such forward-looking views are the equivalent of an educated opinion and should be treated as such. The Home Buying Institute makes no claims or guarantees about future real estate or economic conditions.