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.

Charlotte NC Real Estate Report – April 2017

The vitality of Charlotte real estate depends on the health and vitality of several offshoots of the overall Charlotte economy. The good news — actually, the GREAT news — is that the Charlotte economy is at full steam, chugging along, and pulling everything behind it along for the ride.

Steam locomotive

The demand for Charlotte homes is unrelenting. The latest numbers on the Charlotte real estate market back up this assessment. As of 4-30-2017, the inventory of homes for sale dropped by 20.15% compared to last year. The number of days from list to close fell by 15% from April, 2016. The median sales price jumped by $4,000, or 11.9%, to $226,000. Little surprise that the percent of original price received was 97.2%, an increase of .9% from 2016 — which was also a phenomenal growth year!

Factor in the drop of the days of list to close by 15% to 96 days, and the rise in pending sales, that is, the deals that have been agreed upon but not yet closed, by 8.1%, and there’s no doubt the Charlotte real estate market is rolling along.

This all adds up to a tricky market, one where the seller has many advantages. But this means that a Charlotte home is not only a great investment, but a great place to live and work. The employment and wage growth numbers prove that’s the case. Buyers can maximize their clout with the experience of an exclusive buyer’s agent who can help them negotiate the twists and turns ahead.

Charlotte NC Real Estate Report – March 2017

Winter’s over, and 2017 is off to a great start for Charlotte real estate. Spring flowers aren’t all that’s blooming, as the latest numbers show.

Spring FlowersConcerns about how the new administration would affect the overall economy have given way to optimism for the future, and the demand for Charlotte homes reflects that optimism. As of 3-31-2017, the number of closed sales grew 11.5%, or by 408 sales, from last year at this time. Our already shrinking inventory of homes for sale contracted by 20.3%, and the number of days from list to close dropped 14.8% from March, 2016. And once again, the best indicator of future sales, the number of pending sales that have yet to close, expanded by 16.2%.

As we would expect, the expanding demand has pushed up prices; the median sales price grew by $22,950, or 11.6%, to a new high of $220,950. Another significant indicator of growing demand, the percent of original list price received, showed a gain of 1.4% from last year to 96.9%.

With the overall economy steadily improving, including steady improvements in wages and consumer demand, and with renewed confidence of future real estate vitality, we can conclude that Spring, 2017 has arrived.