Data show that vaccine supply is catching up with demand, but we see no such evidence in the Real Estate market yet. In March, supply in the Charlotte region was down 70.2% from March of 2020 with just 2,733 homes for sale. Buyers are really feeling this because there are fewer homes to choose from so sometimes they are bidding on homes even though they are not exactly what they want. We are also seeing multiple offer situations where buyers are not able to get the home they want because of fierce competition.
The Canopy Realtor Association reports monthly on the real estate market and their report also shows that prices have risen yet again with many homes selling over asking price. In fact, sellers are currently receiving on average 100.1% of their list price. This can lead to complicated situations where buyers may have to bring cash to the closing table to cover the difference between appraised value and sale price.
In Huntersville, home prices are now up 101% from the same time last year. There is great demand for homes even as fewer homes are listed for sale. New listings there are down 22.8% and there are only 56 homes for sale there representing 0.3 months supply of homes.
In Matthews, home prices are up 102.7% from last March. They also have just a 0.3 month supply of homes with just 38 homes listed for sale. New listings in Matthews are down 18.6% so their supply is definitely not keeping up with demand.
Waxhaw is also in high demand with a price rise of 101%. New listings there are down 33.5% and there are only 40 homes on the market in Waxhaw representing just 0.3 month supply of homes.
Fort Mill is another hot destination right now with just 56 homes for sale selling for 101.2% of list price. This is representing a 0.4 month supply of homes. New listings there are down 21.8% year over year and prices are up 14.7% from last year.
Rounding out the hot spots for real estate, you have similar numbers in York County, Rock Hill, and Tega Cay. Not to say that other areas of the city are doing poorly, they just have sales prices that are in the high 90th percentile instead of over a hundred percent.
Homes are selling quickly this year as well. Last March, the average home went under contract after 46 days. This March, the average home went under contract after just 24 days. This is hard on buyers as many of these homes are selling after just one weekend on the market. A tactic we are seeing is that a seller’s agent will list a home on a Thursday or Friday and state that they will choose between all offers on Monday. This gives tremendous power to sellers as they are able to choose the highest and best offer, potentially leaving out many buyers who would love to buy their home.
Buyers are doing everything they can to stand out in multiple offer situations. Some add personal letters with offers, some are turning to companies that help you to make an all-cash offer, others are waiving some or all of the protections in a traditional sales contract. Once supply catches up with demand, we should see these multiple offer situations ease.