How Long do Homeowners Stay in Their Homes in Charlotte NC?

By
Real Estate Agent with www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209

How Long do Homeowners Stay in Their Homes in Charlotte NC? Charlotte Home-ownership Tenure Has Increased

Charlotte homeownership in Dilworth
Historically homeownership data has reflected that the average Charlotte residents lived in their homes for 4-5 years. With Charlotte being such a large financial, technology and health care city, those jobs tend to involve more relocation needs than others. Hence, the transient nature of Charlotte’s population.

 

However, The Great Recession changed all of that! Those fortunate enough to maintain employment during the recession were absolutely not interested in selling their homes - at all!  This went on for 4+ solid years. Imagine living in a home too small or too large for you for that amount of time.

 

Hence, the National Association of Realtors’ (NAR) historical data on the median tenure of home-ownership (same home) has changed dramatically. As the graph below shows, over the last twenty years (1985-2008), the median tenure (nationally) averaged six years. However, since 2014, that average is almost ten years – an increase of almost 50%.

Homeownership Tenure 1985 to 2017

 

Why the dramatic increase?

While Charlotte’s average is probably two to three years less than the national average, we are still seeing a considerable increase. The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move so, ‘staying put’ was their best option.

 

Charlotte homeownership tenureWith home prices rising dramatically over the last several years, that negative equity has turned to 95.3% of homes with a mortgage, now being in a positive equity situation, according to CoreLogic.

 

 

With a much improved economy and wages on the rise, many Charlotte homeowners are in a much better financial situation than they were just a few short years ago.

 

One other reason for the increase was brought to light by NAR in their 2018 Home Buyer and Seller Generational Trends Report. According to the report,

 

“Sellers 37 years and younger stayed in their home for six years…”

 

Homeowners, who are either looking for more space to accommodate their growing households or for better school districts to do the same, are likely to move more often (compared to typical sellers who stayed in their homes for 10 years). The home-ownership rate among younger buyers, however, has still not caught up to previous generations either.

 

The Bottom Line

In Charlotte, a large portion of homeowners are not in a house that is best for their current circumstances. Whether it be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo, planning to ‘grow’ their household.

 

These Charlotte homeowners are ready to make a move but, with the lack of housing inventory, they are facing a major challenge in the current housing market. When inventory begins to rise, we will likely see home-buyers taking the plunge.

 

SELLERS

If you're feeling pent-up in your current home and thinking of selling your first, second, third...homelet’s talk! As with everything in life, preparation is key and I will equip you with what you'll need to get you, as seamlessly as possible, through the home-selling process. Call or text (704) 491-3310 and let’s get started today!

 

*References from any of our sellers are available upon request.  Read our reviews at www.CharlotteRealEstateAgentReviews.com

READ: 2018 Top Charlotte Home Seller Tips 

Hiring the RIGHT Charlotte Realtor® is critical to your home selling success!

 

BUYERS  

Visit www.TheMaxwellHouseGroup.com for more information and to search for homes in the Charlotte Metro region. Your first step should be enlisting an experienced, local real estate broker who will educate you on the ENTIRE home buying process. Selecting a great broker is not as easy as it may seem. There are real estate agents and brokers who will sell you anything but, you want to enlist a seasoned real estate professional for your real estate needs. We would love to share our knowledge of the Charlotte market with you...and give you the grand tour of our beautiful city as well! 

Hiring the RIGHT Charlotte Realtor® is critical to your home buying success as well!

 

 

© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | How Long do Homeowners Stay in Their Homes in Charlotte NC?

Originally posted at https://www.icharlotterealestate.com/how-long-do-homeowners-stay-in-their-homes-in-charlotte-nc/

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Rainmaker
2,786,994
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Staying longer is of course a contributing factor to Thinventory !

Jul 10, 2018 09:33 AM #1
Rainmaker
1,385,644
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Debe Maxwell, CRS, one of the challenges sellers have is finding their next home, especially in the "affordable" range. 

Jul 10, 2018 10:24 AM #2
Rainmaker
694,968
Erika Rogers
Red Rock Real Estate ~ Southern Utah's Largest Independent Brokerage - Saint George, UT
St George Utah Real Estate & Relocation Specialist

Love the term Sally & David used "thinventory"!!  It is nice to finally see most homeowners in a positive equity situation though.  Interesting information Debe Maxwell, CRS on how long homeowners are staying in their home in Charlotte NC.

Jul 10, 2018 12:29 PM #3
Rainmaker
660,540
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

We see the same issues Debe Maxwell, CRS but we also saw many homeowners extending the homes they were in and now they are staying in those homes. One of the causes of our lack of inventory. 

Jul 10, 2018 01:18 PM #4
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debe oddly enough the average mortgage loan also stays on the books for about 5 years.  Generally around that time the borrower is usually looking to purchase another home or refinance the existing one.

Jul 10, 2018 03:29 PM #5
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Absolutely, Sally K. & David L. Hanson - and now that they have equity in their homes, they're afraid to sell without knowing they have a home to buy. It's a vicious cycle that needs to END! 

Jul 10, 2018 08:46 PM #6
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes, that's one of our challenges here too, Beth Atalay! I had one recently that was priced under $250K that had 40 showings in 24 hours and 27 Offers. That leaves at least 26 serious buyers back at the drawing board. It's beyond belief these days! I'm looking forward to a more balanced market, for sure! 

Jul 10, 2018 08:48 PM #7
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I totally agree, Erika Rogers - SO nice to see that too! Now, if only the thinventory issue would resolve!

Jul 10, 2018 08:51 PM #8
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes, we're seeing that too, Nick & Trudy Vandekar, 610-203-4543! In fact, some would-be sellers have phoned me to ask about particular size/area homes that are available. Those prices are so high now that I tell them, it makes more sense for them to do a room addition and stay-put. As long as the neighborhood can substantiate the cost of the addition/improvements, it's just a smarter move for some.

Jul 10, 2018 08:54 PM #9
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

That is coincidental, isn't it, George Souto? Here 5 years is closer to average and you're right, if they don't sell at 5 years, they typically refinance. 

Hope you're having a great week, George!

Jul 10, 2018 08:57 PM #10
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

It used to be 3 to 7 years around here anit was like clock work Debe. Now we are in the 4 to 5 year bracket like you...

Jul 10, 2018 10:02 PM #11
Rainmaker
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James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Debe.

With the worlds largest employer about 3 miles from my home, the turnover rate keeps us busy. 

Jul 11, 2018 02:34 AM #12
Rainmaker
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Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Gone are the days of people purchasing a home for their family and living in it for the rest of their lives, haha.

Jul 11, 2018 07:22 AM #13
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much, Debe, for sharing this interesting information.

Jul 11, 2018 03:07 PM #14
Rainmaker
1,103,166
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Debe, 4-5 years only? 

Now, I atm currious, and will look for the same information for condos in our area. Thank you. 

Jul 11, 2018 06:49 PM #15
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Paul S. Henderson, REALTOR®,CRS,! Yes, the very nature of our transient work environment lends itself for a lower than national average homeownership tenure. I always hate to see people leaving the city but, for every one that leaves, we seem to have two more moving in! 

Jul 12, 2018 08:31 AM #16
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

That's so nice, isn't it, James Dray? Being the second largest financial city and the move in domination in the energy sector, we're seeing a lot of 'moving' going on too! And, we have a Level I trauma center here that hosts residents throughout the year for 2-6 year terms here. All combined, we have a very large number of relocation clients in our area - at all times of the year too!

Jul 12, 2018 08:33 AM #17
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

That is so true, Brian England! When my MawMaw was 95, they sold the house that my Dad and his brothers were raised in. It felt like we had lost a member of our family! Now, roots are not nearly as deep as they were 'back in the day,' are they?!

Jul 12, 2018 08:35 AM #18
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

And, thank you, Roy Kelley for stopping by! Hope you're having a great day!

Jul 12, 2018 08:35 AM #19
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Evelina Tsigelnitskaya! You know, it's possible that it's very different as national averages are just that - national numbers, averaged and we never seem to fit the national average mold here in Charlotte either!!

Jul 12, 2018 08:37 AM #20
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