Competition for Charlotte, Matthews, & Huntersville Homes Heats Up: August 2017

Back-to-school time for many home buyers and sellers used to indicate a cooling down of the Charlotte real estate market weeks before the summer temperatures began to cool down. This was due to parents who didn’t want to uproot their children during the school year. But competition remains fierce for the limited number of Charlotte area homes on the market, so with no respite in sight, prices have continued to move higher.​

Prices of Charlotte homes continue to rise.

Charlotte home prices continue to rise.

Median sales prices for Charlotte homes were up 5.0% to $230,000 from $219,000 last year. While the number of new listings are up slightly, available inventory continues to plummet. ​As of August 31, 2017, the inventory of homes for sale tumbled once again by 2,324 units, a drop of 18.6%, to a new low of 10,153. This leaves only a 2.6 months supply of homes for sale, representing a decrease of 23.5% from last August. These factors helped nudge the percent of original list price received up by another .4% to 97%. Keep in mind that 97% is the average, notwithstanding instances where the sellers have been offered more than their asking price.

The prevailing trend is expected to continue well into the school months as households with children get them settled into their classes. No other major changes in the economy have affected housing, so both national and regional economic trends portend a continued increase in real estate prices. And the stability of the factors that most directly affect home sales; wage growth, unemployment, and mortgage loan rates,​ suggest these robust trends may be around for quite some time. ​​Help may be on the way in 2018, though. The ongoing low inventory situation may be relieved somewhat due to recent manufacturing data showing increased demand for housing construction materials and supplies. For a breakdown of the sales prices for Charlotte homes by market area, see the reports for Charlotte NC homes, Matthews NC homes, and Huntersville NC homes.

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.