Despite a cool start to the year, prices began to thaw in February, and demand for Charlotte real estate is picking up as we move into Spring. While we’re still seeing incremental increases in home prices, the rate of growth is clearly slowing down, a trend we’ve noted for the past few months. That’s good news for buyers.
As of February 28, 2019, the median sales price for the greater Charlotte area inched up by $5,125, a modest increase of 2.3%. The inventory of homes for sale dropped by 240 units, or 2.7%. This close correlation between supply and demand suggests the excessive enthusiasm for new homes that fueled the long-lasting sellers’ market has cooled and is now approaching a more reasonable and down-to-earth level. The .8% decrease in the percentage of original list price received underscores that trend, suggesting that sellers are more willing to negotiate on price. On the other hand, the number of months supply of homes for sale has dropped by 4.5%, which indicates that inventory will remain an issue for home buyers.
February’s weather is normally a speed bump for prospective home buyers, so slight slowdowns are to be expected. The long-term outlook for key economic indicators remains optimistic, bolstering the continued health of both national and local housing markets, which are inevitably interlinked – if people can’t sell their homes, it’s difficult for them to buy a new home. With Spring on its way, the number of relocations to the growing Charlotte area, as well as the proven determination of buyers to secure the homes they want, we can look forward to a robust – and more balanced – housing market for the coming year.