Each month, the Canopy Realtor Association publishes market data so we can see what is going on in the Charlotte Region. This time, we are seeing lower inventory than last June by 1,033 homes. This represents a decrease of 17.2% from last year. We are seeing new listings, pending sales, and closed sales all down year over year. One thing that isn’t going down right now is prices.
When you look into the numbers, the decreases make sense right now. Prices have been going steadily up since before the pandemic. Along with the increase in prices, interest rates are higher than they have been for years. This pinches buyers, especially first time buyers so that many of them are continuing to rent after they normally could have bought a home.
Many sellers are waiting to list their homes until conditions are better so they can guarantee a quick sale when they do list. This further suppresses the supply of homes, and does nothing to ease inventory woes. Every time that the Federal Reserve raises rates, the implications are felt in the real estate industry. The FED has raised rates to help combat inflation in the wake of the Covid pandemic. We are starting to see some of that ease, so there is a chance that rates could go back down and spur more listings and sales in the future.
Another factor in the decrease of new listings, is the decrease in new housing starts. With prices continuing to rise for building materials, many builders are opting to focus on homes that have a larger profit margin. This means that there are fewer homes in the lower price ranges that would be great homes for first time buyers or older buyers looking to downsize. There is more competition than ever for the few lower priced homes that are in the area.
The average list price in the Charlotte Region has reached $498,215. The average sales price rose to $487,755. This shows that homes are selling for less than list price which is a far cry from last year when most homes were selling for above list price, many with multiple offers. Buyers are able to have a little bit more leverage in negotiations than they could last year and we are no longer seeing as many homes receiving multiple offers.
Homes are staying on the market for longer now. The average home is now spending 31 days on the market before going under contract. This is up 107.1% from the 14 days last June. Those extra days may worry sellers, but homes are still selling so there is little to fear. For buyers, it gives them more time to make decisions so there should be less buyers remorse.
The Charlotte Region includes Alexander, Anson, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly, and Union Counties in North Carolina. The region also includes Chester, Chesterfield, Lancaster, and York Counties in South Carolina. Canopy Realtor Association gets their data from the Canopy Multiple Listing Service which publishes data for all Realtor associated listings, which will not include information about properties sold by owner.
