There is a slowdown happening in the Charlotte Region according to the Canopy Realtor Association. Closed sales and new listings are slowing down compared with earlier this year which shows that yearly trends of the market slowing in time for the holiday season are holding true. It feels nice to have a little bit of normal in what has been a crazy year for the market. Homes have been selling for more money in less time than we have seen in a long time. It will be a relief to have some stabilization in the market.
With many buyers staying out of the market until the spring when there should be more choices, current buyers are facing less competition for homes and we are seeing fewer multiple offer situations. Prices are continuing to stay high however so there are not many deals to be had, even for the most savvy buyers. As of the end of September, homes are still selling for an average of 101% of list price.
When a home is listed for sale, it is almost guaranteed to sell quickly. The average time a home spent on the market before going under contract was just 16 days. That is down from 30 days last year and 39 the year before. This means that buyers have to be ready, with loan pre qualifications, and competitive offers to secure the home they want.
Buyers also have to be ready to come with more money than ever before with the rise in prices. The average home sold for $388,917 in September, up 11.7% from September of 2020. When you look at the full year, prices are up 16.2%. When you look at 2019, before the pandemic began, average prices were just barely over $300,000. That’s a rise of just over $80,000 in value in just two years. This hurts buyers right in the wallet and has kept many first time buyers in rental homes as they can’t afford entry.
A price correction seems unlikely at the moment. There is still not enough inventory to keep up with demand for homes. There is only a 0.8 month supply of homes on the market. Balance between buyer’s and seller’s markets is typically considered to be a 4-6 month supply of homes. As the pandemic wanes, many experts are predicting that many more people will list their homes increasing the supply. Builders may also increase the supply of homes as supply chain woes are expected to ease.
Sellers are coming out ahead in the market right now, but they then need to become buyers which has kept many people from listing in the first place. The logistics of open houses and showings have kept many other people from selling. Those worries should be a thing of the past soon as well. These factors bode well for a robust spring market. We may see stabilization of prices as there should be a higher supply of homes. This should lead to fewer multiple offer situations, and homes staying on the market longer before going under contract. This could lead to lower prices, but many buyers have been waiting for a larger selection of homes for sale so we could see prices remain elevated.