A suburb of Charlotte, North Carolina, Matthews
is considered to be one of the top places to live in the state. It has a dense suburban feel and offers many stunning single-family homes. It boasts plenty of greenery and open spaces, including several parks such as Stumptown Park and Squirrel Lake Park
. And with many family-oriented community events and top-rated schools
, Matthews is a huge draw for those with children.
Although Matthews real estate has a classic small-town feel, it’s only a short drive from Charlotte’s outstanding restaurants, nightlife, and easy access to the airport. If you’ve had your eye on the Matthews or greater Charlotte real estate market, then 2023 could be the year for you. Our guide takes you through the major predictions and upcoming changes.
Increased mortgage rates
One of the main factors influencing the 2023 market trends is increasing mortgage rates. During the pandemic, mortgage interest rates were at historical lows. For example, in December 2020, the interest rate for a 30-year fixed-rate mortgage was 2.65% according to Freddie Mac
. This led to increased borrowing and increased demand for home sales. As inflation rose due to pent-up demand and a heated economy, the Federal Reserve began to increase mortgage interest rates to cool demand and decrease inflation. As of October 2022, the interest rate on a fixed-rate 30-year mortgage was 6.7%. This rate is expected to decrease borrowing and decrease demand for housing. As a result, the real estate market in Matthews, along with many other surrounding communities, will likely decrease in demand compared to previous years.
According to the National Association of Realtors
, 16% of borrowers felt that financing options were the primary reason behind wanting to purchase a home in 2022. This was especially true for Millennials and younger Generation Y buyers, of which 20% felt that financing options were the primary reason for borrowing. This age group made up 18% of homebuyers; however, this category may be discouraged from borrowing in 2023 as interest rates continue to rise.
During the pandemic, many industries shifted to remote work and a work-from-home dynamic. But as the pandemic wanes, more offices are demanding a return to in-person work full-time. According to the Bureau of Labor Statistics
, only 7.7% of workers were able to work remotely in April 2022. This is down significantly from May 2020 when 35.4% of workers were working remotely. This return to in-person office work will change the living dynamics for many workers. That is, there may be a greater desire for real estate properties that are closer to cities and businesses and less desire for locations that are distant from business offices. This could potentially lead to an increase in demand for Matthews homes for sale.
The rate of inflation reached a high of 8.3% during the summer of 2022, according to the Bureau of Labor Statistics
. How did inflation directly affect real estate? Typically, during periods of inflation, real estate remains a solid investment for those with asset liquidity, according to Forbes magazine
. During times of high inflation and increased interest rates, many potential buyers shift to renting, creating a steady supply of clients for multifamily property owners to rent to. Thus, although inflation may drive some buyers away, decreasing demand, there is value in investing in rental properties during times of inflation, and there could be an increase in demand for certain types of real estate.
Despite the increase in inflation and mortgage interest rates, there is still strong demand and value in real estate. Home sales prices
are increasing across the entire country. The national median home price in August 2022 was $389,500, which is a 7.7% increase from August 2021. In the south, which includes Matthews and North Carolina, the median home price was $316,700 as of August 2021. However, in 2022, the median home price for this region increased to $365,000, showing a substantial amount of growth despite a rising cost of living.
Although home values are growing, home sales are slowing in the south. Existing home sales in this region declined by 19.3% between 2021 and 2022, from 2,640,000 to 2,130,000. Thus, although home values remain steady to slightly increasing, home sales are slowing.
If you’re ready to enter the Matthews real estate market, you’ll want to work with a great luxury realtor who knows the market dynamics and can analyze market data to help you reach the best deal possible in your real estate transaction.
is an expert in local Matthews real estate and has over seven years of experience. Working as a trusted partner with her clients
, Pam Roberts
knows how to navigate a fluctuating market to best meet their needs and goals.
*Header photo courtesy of Shutterstock