So, what exactly is hyperinflation? The answer is, Monetary inflation occurring at a very high rate. Evidence of hyperinflation throughout the Charlotte market is rampant. In neighborhoods like Madison Park, Wilmore, and even Cherry. For example in Madison Park at the beginning of 2017 you could find a decent 3 bedroom, 2 bath house for around 300k or even less. Now we are seeing updated 3 bedroom 2 baths go for close to 500k. I don't even need my degree in Finance to tell you how prime of an example this is of hyperinflation.
The thing about this inflation is that it is not sustainable. If this trend continues we could potentially be running into a situation similar to the market crash of 2008 where people are over-lending for homes and people begin to default on mortgages.
I believe the root of this hyper-inflation issue is the APPRAISERS. In some instances I have seen appraisals where the comps they are using have no similar qualities to the subject property but still bump the appraisal up to where the bank needs it to be. This collusion that is happening between the banks and the appraisers is something that could potentially ruin the Real Estate market again.