CHARLOTTE (QUEEN CITY NEWS) — Over the last two years, prices have increased, and short supply has thrown the housing market into a frenzy.
Research by Florida Atlantic University shows charlotte has entered the top 10 overvalued markets for the first time.
Researchers say buyers are paying 50% more than the market’s long-term pricing trend. The average price for a home in the Queen City is about $353,000, while past data show prices should be about $120,000 cheaper.
The UNC Charlotte Urban Institute studies economic challenges in the Charlotte region, including the housing market. Researchers with the institute say rising costs are forcing residents out of the market, especially first-time buyers.
“They don’t necessarily have anywhere to go in the rental market either as they wait for prices to either come down or the ability to save enough money to buy a house because the flip side of this is that rents are going up very rapidly as well,” UNC Charlotte Urban Institute’s Ely Portillo said. “We have a real problem in this community right now, not just with housing at the lowest end of the price spectrum, but really with housing all the way up to the middle price spectrum where people are just not able to find something that fits their budget a lot of the times.”
On top of higher prices, home buyers are also facing short supply.
New data released by Mecklenburg County shows the number of available homes across the market is at a historic low.
Last month, 763 homes were available for purchase.