The strong demand for Charlotte, NC homes has depleted inventory and skewed home prices, and our featured image pretty much shows us why.
Bidding wars by near-desperate home buyers have been a major factor driving the long-standing sellers’ market. Multiple offers have enabled sellers and their agents to sit back and allow buyers to push up prices. Lately, however, many real estate professionals report significantly less multiple-offer situations. And even when there is competition among buyers, prices aren’t reaching the stratospheric levels seen during the peak months of the sellers’ market that has prevented many buyers, especially first-time buyers, from securing the home of their dreams.
Let’s look at the latest numbers. As we’ve been seeing for some time, the median sales price has notched up once again, this time by $9,203, or 3.9%. The number of months supply of homes for sale dropped by 4.3%. Not the best news for homebuyers, but these two crucial figures do hint at a positive trend that buyers will welcome. Just as we saw last month, the close association of supply and demand strongly indicates a return to rationality in what has been a somewhat feverish and lopsided seller’s market. While the overall inventory of homes for sale declined by 240 units, or 6.3%, the percentage of original list price received dipped by .6%, another signpost the sellers’ market is indeed correcting itself.
Another positive development is the Federal Reserve’s recent announcement that it plans no interest rate increases for the remainder of the year. After nine rate hikes in the past three years, that news will be viewed with relief by home buyers, whose mortgages will ultimately reflect the availability of credit.