Charlotte-Huntersville-Matthews Area Home Sales: July 2017 – Still A Seller’s Market

Buyers, buyer’s agents, and real estate analysts are scratching their heads over the ongoing pace of home sales. For the last two years, and especially here in Charlotte, NC, we’ve witnessed a steady decrease in the inventory of homes for sale alongside a steady increase in the median sales price. It’s been a one-sided seller’s market, one that shows no signs of slowing down any time soon. So a lot of people are wondering how long this can go on.

How much longer can the Charlotte real estate sellers’ market go on?

Like the marathon dancers from the Roaring Twenties, the seemingly impossible pace of the national real estate market just keeps on keeping on. The seller’s market is so strong in places that new listings are snatched up in a day or two, and lucky sellers (and their agents!) quickly receive multiple offers to choose from. What’s more, many home buyers must offer more than the asking price if they hope to obtain their first choice. With the employment rate at a healthy national average of 4.4%, and the overall economy showing clear signs of continued vitality, it’s possible this dance could go on for some time.

July’s market indicators back up this scenario. As of July 31, 2017, the median sales price rose yet again, this month by 9.8% to a new average of $236,000. That’s an increase of $21,000 in just one year. The inventory of homes on the market dipped by 2,511 units, a staggering 19.8% drop, to 10,174 homes. This leaves only a 2.6 month supply of homes for buyers to select from, a decrease of 25.7% from July, 2016. Little wonder that the percent of original list price received saw a bump of .6% to a new high of 97.3%. Seller’s market indeed.

Those are the overall numbers for the greater Charlotte, NC market area. For more detail, see the reports for Charlotte, Matthews, and Huntersville.

Charlotte, Matthews & Huntersville, NC Area Home Sales Slow for June 2017

​Despite the continued surge of relocations to the Charlotte, NC area, home sales growth has slowed down. In light of strong job creation and healthy overall economic trends for a region that includes the towns of Matthews and Huntersville, it’s puzzling at first glance.

But delve a little deeper and the mystery has been solved: it’s all about inventory and the construction of new homes.

Building new homes in Charlotte

Time to get back to work building new homes in Charlotte!

In fact, housing starts have been drifting lower, to the point where some fear the possibility of serious housing shortages down the road. And it’s true that new construction and building permit applications continue to lag behind growing demand. But when we factor in the widespread availability of credit coupled with low mortgage rates, not to mention the forecast for robust economic growth for the Charlotte, NC area, it’s easy to make a case for optimism. So despite the concerns over inventory, it’s reasonable to expect home builders to rise up to the challenge.

As of June 30, 2017, the inventory of homes for sale came in at 9,967 homes, compared to 12,592 for June, 2016. That’s a drop of 2,625 units, representing a decrease of 20.8%. The number of months supply of homes for sale declined from 3.5 to 2.5, a loss of 28.6%. Further confirmation of the ongoing seller’s market can be seen in the percent of original list price received, which was 96.8% last June, but has now climbed to 97.5%, a gain of .7%. That’s not a huge increase, but we have to remember that that significant statistic has grown steadily for several years. And finally, when we look at the current median sales price of $245,000, we see a $20,000 increase from June, 2016, a hefty rise of 8.9%. Once again, all indicators point to the long-standing seller’s market to persist for the foreseeable future.

See reports for CharlotteMatthews, and Huntersville to compare sales trends between area cities.

Charlotte NC Home Sales:
No Boom and Bust for May 2017 real estate market

Regular readers are well aware of how much Charlotte home sales prices have continued to rise, creating a seller’s market that has given no indications of slowing down. And what’s happening in Charlotte is reflected throughout much of the country, with Charlotte real estate values climbing ever upward. This has many wondering if soaring home sales prices could trigger another boom-and-bust scenario like the country went through ten years ago.

We have better controls now than we did ten years ago!

Fortunately, there’s little to suggest history could repeat itself. Lenders are enforcing stricter standards and requiring verification of income, higher down payments and putting borrowers through a more stringent loan approval process. Further, the economy is far more robust, with more jobs available and unemployment low.

With that in mind, let’s look at the latest home sales pricing report. The median sales price, the midpoint at which half the homes sold for more and half for less, is a useful indicator when evaluating the market. As of May 31, 2017, the median Charlotte home sales price increased by $16,500, or 7.9%, to $226,500 from $210,000 a year ago. The inventory of homes for sale dropped by 9,795, a decrease of 20.2%, which ties in with the drop of 26.5% in the supply of homes for sale to 2.5 months. When there’s less than 6 months of supply of homes on the market, it’s a seller’s market, with percent of list price edging up from 96.8 in May, 2016 to​ 97.3​ last month​.

The overall economy is still improving and workers have more faith in their wages and the potential for wage increases. Although housing inventory is still low, reforms are in place to prevent an over-heated summer market. But before they dive into their next real estate transaction, home buyers are advised to review recent Charlotte home sales reports and to track the the past home sales by month ​for the neighborhoods they’re interested in.