May 7, 2023 - News

All-cash offers make Charlotte’s residential real estate out of reach for many

charlotte real estate market

charlotte real estate market

The share of homes bought in cash in Charlotte skyrocketed in the years following the Great Recession, then spiked again after the pandemic, a Canopy MLS review of historic residential real estate data show.

Why it matters: The data show that investors saw real estate as a safe place to grow wealth following economic downturns, says Tiffany Johannes, president of Canopy MLS.

  • While the share of residential cash deals has declined in recent years, it’s still far greater today than it was pre-2008.

Zoom out: Making an all-cash offer can give a leg up to prospective buyers like corporate investors, who’ve been scooping up more homes around Charlotte in recent years.

  • Their holdings are concentrated among lower-priced houses around the region.
  • This can make purchasing a home even harder for prospective buyers in a region where the housing market is already historically low.

By the numbers: In the years before the housing crisis, the portion of residential cash deals hovered around 8%. By 2013, however, cash deals surged to 28.9%. They steadily declined for years after, then surged again amid the pandemic, reaching 25.2% in 2021.

  • In 2023, cash deals comprise an average of 18.7% of all real estate deals in Charlotte, the data show.

What’s happening: In recent years, there’s been an influx of both corporate investors and high-net-worth individuals moving to Charlotte — a market that’s relatively affordable compared to places like New York and California — and paying in cash.

  • “We see a good bit of those individuals — as well as corporate (investors) – from 2011 to present … coming down here from up North, and they could afford to pay cash,” Johannes says.
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