Along with the Raleigh-Durham area, Charlotte has one of the fastest-growing metropolitan areas in North Carolina and some of the most desirable suburbs, including Fort Mill. Nestled just south of the state border is Fort Mill, a charming town conveniently located just minutes from downtown Charlotte. With a population growth of 40.7% since 2020, Fort Mill boasts a healthy local economy and great housing options.
Will this trend continue into 2023 and beyond? Read on to learn about the Fort Mill real estate market and the changes that will occur over the next five years.
Current market conditions in Fort Mill
Over the past couple of years, many real estate markets have been hot, and Fort Mill is no exception. With a population of about 25,000 residents, Fort Mill has become one of the fastest-growing suburbs in Charlotte. The major population influx and low interest rates in 2021 and 2022 combined to make the Fort Mill real estate market incredibly competitive for buyers looking at homes for sale in the area. In January 2021, interest rates fell to 2.65%, which was a record low in over 30 years. This, along with low supply chains, a massive increase in remote work, and its healthy local economy, has kept Fort Mill’s real estate incredibly active.
At the close of 2022, the median price of Fort Mill homes for sale had risen to around $369,500. As the Charlotte area continues to grow, Fort Mill will also likely keep experiencing growth in the coming years.
How will Fort Mill’s real estate market change?
While homebuyers saw record lows for mortgage interest rates in 2021 through the spring of 2022, interest rates have risen to over 6% in recent months, which is the highest they have been since 2008. Because interest rates are higher, buyers will likely spend more over the course of 30 years on their loan, even if real estate prices level out. As a result, the demand for real estate will level out in the upcoming months, but the market will likely remain stable.
While some economists predict we will enter a nationwide recession in 2023, this recession does not look similar to the recession of 2008. While that recession was due to lax lending standards and a housing bubble that burst, this recession is primarily fueled by an inflated economy, limited supply chains, the rise of labor costs, and other contributing factors. As a result, the housing market will likely look more like a housing correction rather than the housing crash that occurred in 2007 and 2008.
What does this mean for sellers and investors? Over the next five years, Fort Mill’s local market will likely remain stable, but with positive growth. As the Charlotte Metropolitan area continues to grow, so will the demand for quality housing nearby. Fort Mill is located 30 minutes south of Charlotte and is experiencing significant growth. As more prospective residents move to the area, especially for employment opportunities, sellers and investors will have plenty of opportunities to sell their homes for top dollar. Housing prices will continue to increase over the next five years, but at a slower pace than they did in 2021 and 2022. This will be due to the less frenzied and more regular, stable demand for housing and increased interest rates driving up monthly payments.
Factors that influence the local real estate market
When trying to predict what the local real estate market will do in the coming years, there are many factors involved. While interest rates are often indicative of buyer demand, they are not the only factor that can project area growth. For many, one of the main driving factors behind determining the area into which people move is the economy. A local economy can make or break future real estate sales in significant ways. If an area has low unemployment rates and high demand for jobs in a variety of fields, then the area likely has a healthy local economy, which increases the demand for real estate. On the other hand, if an area has poor job prospects and a high unemployment rate, then the demand for real estate is low and property values decrease.
Fort Mill currently has a very low unemployment rate of just 4.5%, which is much lower than the national average of 6%. Not only does Fort Mill have a low unemployment rate, but they also have exceptional future job growth, with a projected growth rate of 42.3% over the next ten years. This far exceeds the national average. As such, Fort Mill will continue to see steady population growth while experiencing a healthy local economy. This will be one of the greatest determining factors over a local real estate market’s success. Other determining factors behind a local real estate market include demographics, available inventory, and government subsidies.
While it’s not possible to fully know everything that will happen over the next five years, paying attention to current market trends, employment prospects, and interest rates is very helpful in determining the health of your local real estate market. Taking everything into consideration, investing in Fort Mill real estate has the potential to generate value for years to come.
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*Header photo courtesy of Shutterstock
