Is a Housing CRASH Coming? Charlotte NC Housing Market Update – May 2025

Introduction: What’s Really Happening in Charlotte's Housing Market?
Charlotte Housing Inventory Is Rising
Buyer Hesitation Amid High Mortgage Rates
Closed Sales and Average Home Prices
National Trends Are Impacting Charlotte
What This Means for Charlotte Home Sellers
Advice for Charlotte Home Buyers
Final Thoughts: Should You Buy or Sell in Charlotte in 2025?

Introduction: What’s Really Happening in Charlotte's Housing Market?

By Josh Finigan | The Finigan Group – eXp Realty

The Charlotte housing market in 2025 is showing signs of change. With inventory rising, interest rates holding steady at higher-than-expected levels, and buyer hesitation creeping in, many are wondering — is the spring real estate market in Charlotte slowing down?

Let’s take a look at the latest data, market trends, and what it all means for buyers and sellers.

Charlotte Housing Inventory Is Rising

In April 2025, 1,681 new listings hit the Charlotte housing market. That’s an 18% year-over-year increase and consistent with March’s numbers. Sellers are clearly more confident about listing their homes, increasing options for buyers. However, inventory is rising faster than demand, which is shifting the market dynamics.

Active Listings in April 2025: 4,520
- Up 6% from March
- Up 26% from April 2024
Months of Inventory: 4.1 months

More homes on the market mean increased competition for sellers and more choices for buyers.

Buyer Hesitation Amid High Mortgage Rates

Despite the influx of listings, pending sales decreased month-over-month:

April 2025 Pending Sales: 1,263
- Down 3% from March
- But up 8% year-over-year

This drop runs counter to seasonal expectations. Spring is typically a time when the housing market heats up. However, ongoing economic uncertainty, global news, and persistent high interest rates are likely causing buyers to pause.

Closed Sales and Average Home Prices

The number of closed homes rose in April:

Closed Sales: 1,145
- Up 11% from March
- Up 3% from April 2024

But the average home price declined:

Average Sales Price: $604,000
- Down 2.8% from March
- Down 3.67% year-over-year

This price dip suggests that buyer demand isn’t strong enough to support rapid price growth, a reflection of elevated inventory and tighter affordability.

National Trends Are Impacting Charlotte

Nationwide, inventory is up 30% year over year. According to Realtor.com:

18% of listings had price reductions in April – the highest April figure since 2016.
49 out of 50 major metros are seeing slowing price growth.
16 major metros have seen actual price declines.

The Federal Reserve’s decision to hold interest rates steady at 4.25%–4.5% for a third consecutive meeting in May signals ongoing caution. While some expect rate cuts by December 2025, buyers and sellers should prepare for higher rates for longer.

What This Means for Charlotte Home Sellers

If you’re thinking about selling your home in Charlotte:

Competition is higher, so presentation and pricing are key.
Homes are still selling, but overpricing is risky.
Make sure you work with a team that understands the market, has a strong marketing strategy, and can get your home in front of serious buyers.

A realistic pricing strategy and strong marketing will help you stand out in a crowded market.

Advice for Charlotte Home Buyers

Despite higher mortgage rates, this could be a great time to buy:

More inventory means less pressure to rush into a decision.
Buyers may be able to negotiate better terms, such as seller-paid closing costs or contingencies.
Homes in good condition that are well-priced are still moving quickly, so it's important to act strategically.

If you’ve been waiting for more options and flexibility, this may be your window to enter the market.

Final Thoughts: Should You Buy or Sell in Charlotte in 2025?

The answer depends on your timeline and goals. Whether you're looking to buy or sell in 9 days or 90 days, understanding your personal situation is key.

➡️ Sellers: Make your home shine and price it right.
➡️ Buyers: Take advantage of the increased selection and potential negotiation room.

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