Many people are taking advantage of lower interest rates to move into larger homes right now. There is a general trend of people using the equity in their homes to move up to a home with more space, especially one large enough for a home office or two. The only trick is that there are not many homes to choose from because there are not many homes on the market right now.
You can see the trend in the monthly numbers from the Canopy Realtor Association with data from the Canopy Multiple Listing Service. The Charlotte region in the report includes Alexander, Anson, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly and Union Counties in North Carolina. Chester, Chesterfield, Lancaster and York Counties in South Carolina are also included in the region.
Despite historically low inventory, more homes are selling right now than last year at this time. There were 5,469 home sales in the Charlotte region, up 11.4% from last July. Pending sales were also up from 4,767 to 5,895, a rise of 23.7%. This shows that the market should be strong again next month as many of these pending sales head to the closing table.
Inventory is down from a 2.6 month supply last July to just a 1.3 month supply this July. A balanced market between buyers and sellers is typically considered to be a 4-6 month supply. What this means for buyers is that they have to come to the table ready to make a deal and provide their highest and best offer as many homes are getting multiple offers and some are selling for over list price. In fact, in Lake Wylie, the average home is selling for $14,305 over list price.
Homes are selling more quickly as well, with the average time on the market before going under contract is down to just 36 days. These homes are closing on average after 89 days on the market. This means that from the time you put a contract on a home until the time you can walk in the front door as the owner is now around 53 days.
This market recovery is looking like it will continue for a while as new listings were up 4.1% over the same time last year. When you look at the numbers year to date, we are still behind last year by 7.6%, but that is to be expected during these unprecedented times. We have a lag due to the spring slump due to Covid-19 and until the crisis is past, the market will probably not totally recover.
We will keep watching the trends, but if you are looking for a home on the lake, a large home with great amenities, or are looking for more space for homeschooling and working from home, expect to pay a premium and have lots of competition for those homes. Homes with private pools, sports courts, large yards, and outdoor kitchens are especially attractive right now. This means that you can probably get a deal on smaller homes or properties with high population density.