2020 was an interesting year full of twists and turns. The Real Estate market reflected many of those turns. There was record low inventory of homes while prices soared to new heights. Homes sold quicker than ever with multiple offers seen on many properties. Many people stayed in homes they may have otherwise sold due to fears of the pandemic. Trends in home buying changed as well with larger homes with home offices in high demand.
When you dig into the numbers on the report you see that for the entire Charlotte region for December there is now only a 0.8 month supply of homes on the market, or 3,860 homes. This is down from 8,586 homes last year which still only represented a 2 month supply of homes. We thought that 2019 was low because a balanced market between buyers and sellers is typically considered to be a 4-6 month supply of homes. We had no idea how low the pandemic would bring it.
Homes sold quicker as well with the average days on market before a sale coming in at 25, down 44.4% from the 45 days in December 2019. It is now taking an average of 83 days from listing a home to closing the sale. This is down 14.4% from 97 days in 2019. The days between a contract and closing went from 52 in 2019 to 58 in 2020 so it is taking just about a week longer to process loans right now.
When you look at the full year, you see that new listings in 2020 are not keeping pace with 2019, but they were only down 1.5%. This is remarkable considering we are in the midst of a global pandemic. There were major slow downs in all industries and new construction was affected as well. In addition buyers became reluctant to list their homes leading to more lack of supply.
The homes that do hit the market right now are practically flying off the market as soon as they hit, especially if they are staged well and priced correctly. If they have abundant space, home offices, or outdoor living spaces, they are most likely to receive multiple offers as well. We are seeing strong indicators that the market will remain strong for sellers as well with pending sales up 33.9% from last December. These homes should head to the closing table in the next 60 days and will keep the sales numbers strong.
New listings could have a rebound in 2021 as many people who were reluctant to list their homes last year are predicted to list this year. With the vaccine rolling out, we should see a full rebound in the market in 2022. It remains to be seen if the new listings will outpace demand for homes to finally balance out the market. A balanced market could ease things for buyers as they could then have more bargaining power. Interest rates remain low which helps buyers as prices continue to rise.
All numbers are from the monthly report from the Canopy Realtor Association. The statistical data and trends for the report come from the Canopy Multiple Listing Service. Canopy covers 12 counties in North Carolina and 4 in South Carolina that make up the Charlotte Region. They also provide breakdowns of 40 area markets within the region.
