All Forum Posts by: Laura Shinkle

Hi everyone, 

With the talk of a shift on everyone's mind, I thought I'd share some hard data for the area. 

We look at supply as an indicator of what type of market we're in. 6 months of inventory is considered a 'balanced' market, where neither the seller nor the buyer have an advantage in negotiation. More than 6 months is a buyer's market, less than 6 months, a seller's market. For perspective, 2012 was the lowest point for Charlotte housing market after the recession in 2008. In April 2012 we had over 11 months of inventory. At our lowest point, we were at less than 1 month! (February 2022). 

In the Charlotte Metro, months supply of inventory has gone UP consistently in the last 3 months. We're still super low (1.4 months for June) but that gives me hope that the craziness of the last 3 years is easing up. 

Is a bubble bursting here? I don't think so. A bubble bursting would look like prices going down. They're not. Average and Median prices are still climbing, albeit at a slightly slower pace than last year. We're still solidly in a seller's market and will be for a while until inventory comes up, giving buyers more options. 

I'd love to hear what you're seeing in the market!

I'd be surprised if you could find a multifamily in decent shape in NC for less than $175k. I am in the Charlotte market and it's not a possibility here. I'm not an expert in the Greensboro/TRIAD areas, but from what I've looked at it would be a property that needs a full rehab. The midwest is going to be better for that price range and cash flow needs. 

Short term rentals are always popular in the mountains. I'd first make sure you know what the STR regulations are in the county/city. Then talk to builders and look at costs. With 10 acres you could easily build several homes.

For the mountains, I would say don't reinvent the wheel. People go to the mountains for a cabin feel, the views, the outdoors. A view or a creek near the build would be great and give you better rental rates. Or something niche like a 'treehouse' or tiny cabin. Just some thoughts!

If you want to dive deeper into the numbers, AirDNA, Rabbu and other sites have rental data either for free or you can purchase more in depth data. For the record, I've never used them or have any affiliation to those sites. That's just the general consensus of where to find data. 

The last two years have really sped up the appreciation of the property values, but rent is always slower to respond. Rent has definitely gone up since last year though, so it is slowly catching up to the price appreciation we've seen. 

A few years ago, the market prices and rent prices made a little more sense to cash flow. It was a middle ground, where appreciation was fairly certain and you can still cash flow. With the market the way it's been, investors have really been profiting on the appreciation side. 

With increased interest rates, I've seen a lot less buy and hold investors in the market. Money is more expensive. In an area where it was investor heavy (Gastonia for example) I've seen longer days on market and push back on prices. It's still so soon into a shifting market that it's impossible to predict what will happen. 

Hope this helps. Good luck!

Hey Robb, were you able to find anyone? I don't know of any turnkey company, so curious if you found any? 

I love this! Congrats on your home purchase :) I used to work in healthcare (and traveled for a couple years) and there's always that need. I'd be cautious of the HOA though, as most townhome HOA rules in CLT prohibit short term rentals and/or renting part of the unit to someone outside the family unit.

Let us know how it goes!

@David Wax I agree with some of the other comments. I wouldn't move to an area solely for their real estate market. Which city is closer to the lifestyle that you want to live? Where do you have the best career opportunities? Do you have friends/family in any of these cities? 

Secondly, as is mentioned Charlotte is known for it's appreciation. It's definitely a seller's market, and I think it was mentioned our inventory is at record lows. Very competitive in the first time homebuyer market. I do have some clients that are also younger and flexible with their living situation. They chose to house hack with roommates, whether that's Airbnb or a more permanent roommate. In the right price point, you can live rent free that way and catapult your savings. In a couple years, rinse and repeat. It's a strategy that not everyone is comfortable with but it's effective! Good luck, and let us know where you land.

@Brandon Vukelich you moved to Boise, Idaho? I'm intrigued as to the reason for that move other than tenant laws. I know nothing about that side of the country to be 100% honest, I'm only an expert in Charlotte! And when you say Tacoma is a hot market, how hot are we talking? Properties sold in days with multiple offers kind of hot? 

@Jonathan Breton congratulations! Maybe one day we'll work a transaction together :)

Good luck out there!

@Marcus Brown you would definitely want to get an attorney involved. That kind of stuff issue would cause a problem with title insurance and the sale of property. Harry Marsh is great with investors :)

Good luck!