Fall is here, and the market for Charlotte homes is preparing for the usual seasonal changes. This is typically a time when the market and the air cools a bit. But real estate isn’t as predictable as it used to be. Problem is, the home market, like Fall weather, is caught between conflicting trends. Just as the Fall weather reflects the clash of hot and cold fronts, the home market is caught between positive economic trends and troublesome inventory trends. Like weather forecasters trying to predict the Fall weather, home buyers are struggling to make sense of a confusing situation.
First, let’s look at the September indicators. The most glaring trend is the continued inventory shortage. As of September 30, 2019, the number of months supply of homes for sale is 2.2, down 21.4% from last September. The total number of homes for sale is down by 2,174 units, a decrease of 19%. Little surprise that the median sales price rose by $24,479, or 10.4% from 2018. And what had been the only sign of relief from rising home prices, the percentage of original list price received, has increased, though by only .1%.
Builders simply cannot keep up with growing demand. As one of the fastest growing cities in the country, Charlotte is a prime destination for new residents and new businesses. Honeywell and Lowe’s are just two major firms expanding in the greater Charlotte area. And with the national economy remaining strong, and interest rates low, demand can only continue to surge.
But that’s not the whole story. New listings are up by 12.1%, and pending sales increased by 37.6%. So despite the inventory problems, smart buyers are finding homes. Knowing where to look and how to present an offer are key. For example, in the bedroom community of Huntersville, inventory has grown by 3.3%, and the number of months supply has risen by 8.3%, and the percent of original price received has dropped by .7%. The good deals are out there! Having an exclusive buyer’s agent who represents ONLY the buyer is a smart move in a shifting, transitional market.