What the heck is going on with the Charlotte North Carolina Housing Market? Rates are higher than ever and home prices are still going up! Are you interested in staying up to date on the Charlotte North Carolina Housing Market? Then this video is for you!
With a rapidly changing market and a myriad of factors influencing home prices, it’s more important than ever to stay informed. Whether you’re a seasoned investor, a first time homebuyer, or someone simply interested in the state of the market, this blog is designed to provide you with the insights you need.
Join me as we delve into the numbers, dissect the trends, and decode the market dynamics that could impact your real estate decisions.
Charlotte North Carolina Housing Market Update:
The Charlotte housing market is currently experiencing a unique dynamic. While new listings are increasing month over month, they’re still below the year over year trends. Active listings are down, and pending listings are decreasing. Despite these challenges, the market remains resilient, with the average sales price continuing to rise. This resilience is a testament to the strength of the Charlotte market, even in the face of national trends and economic factors.
Number of New Listings
- Number of Active Listings
Number of Pending sales
Number of Closed Homes
Average Sales Price
What Does This Mean For Home Sellers
- What Does This Mean For Home Buyers
1. Number of New Listings
In June, we saw 1366 new listings hit the market, a 5% increase from May, but a 32% decrease from June 2022. While we’re seeing a month-over-month increase in new listings, we’re still below the year-over-year trends. The lack of housing inventory remains a significant theme in our housing market, with various factors contributing to this shortage.
The decrease in new listings compared to last year is a clear indicator of the ongoing inventory crisis. Homeowners are hesitant to list their properties due to the current market conditions, including high mortgage rates. This hesitancy is contributing to the shortage of homes on the market, creating a challenging environment for buyers.
We’ve recently crafted a comprehensive blog post that delves into the reasons behind the current inventory shortage in the United States. If you’re keen to gain a deeper understanding of this issue, click below
One of the biggest contributors to this low levels of inventory is a lot of homeowners that would have put their homes on the market are not because they’ve locked in a much lower rate than what’s currently available on the market. It’s discouraging them from actually making a move, buying another house at a much higher rate.
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2. Number of Active Listings
The average number of active homes available in June was 3193, a 20% decrease from June 2022. This decrease indicates fewer homes on the market compared to last year. From June to December of last year, we saw the number of active listings climb as homes sat on the market longer due to the effects of higher mortgage rates.
This decrease in active listings is a clear sign of the ongoing inventory shortage. With fewer homes on the market, buyers have fewer options, leading to increased competition and higher home prices. This trend is expected to continue until more homeowners decide to list their properties.
3. Number of Pending Sales
In June, 1140 homes accepted an offer, a 6% decrease from May, and a 14% decrease from June 2022. Despite record low inventory, the number of new listings continuously outpaces the number of pending sales, indicating a potential growth in active inventory.
This decrease in pending listings suggests that buyers are taking more time to make decisions, likely due to the high mortgage rates. So we are seeing that mortgage rates are having an effect on homebuyers out there because they’re making homes less affordable, but the inventory is not increasing fast enough to meet that demand.
For those of you who have recently been in the market either buying or selling, you know, we’re still seeing a lot of competition out there. There are still homes that are receiving multiple offers and selling above asking. But it’s not like the Euphoria we saw in the first half of 2022. And one of the big reasons is buyers affordability and higher mortgage rates.
4. Number of Closed Homes
In June, we saw 1229 homes close, a 1% increase from May, but a 21% decrease from June 2022. So we are still seeing a competitive market where homes are closing. We’re not seeing as many homes close as we saw last year, but it’s because fewer people are choosing to sell their home.
The average days on market for a home in Charlotte is around 31 days, a significant increase from the average days on market this time last year, which was around 20 days. This could be due to a variety of factors, including higher mortgage rates and increased buyer hesitancy. However, the fact that homes are still closing at a steady rate indicates that the market remains active and competitive.
5. Average Sales Price
Despite high rates and low housing affordability, the average sales price in Charlotte in June was $580,000, a 2% increase from May and a 10% increase from June of last year. This increase shows that the Charlotte area is weathering high rates better than many other areas in the United States.
This increase in the average sales price is a positive sign for homeowners and sellers. It suggests that despite the challenges in the market, home values are continuing to rise. This trend is likely due to the ongoing inventory shortage, which is driving up home prices.
If we look at the US as a whole, we see the average sales price actually dropped year over year by about 1%. So there’s a lot of reasons we’re seeing our local Charlotte market outpace, the United States as a whole. We’re a rapidly growing city, a ton of people are moving here and we’re seeing a lot of growth.
6. Market Overview:
The Charlotte housing market remains competitive due to low inventory and high demand. However, the high mortgage rates are affecting homebuyers’ affordability, leading to a slight increase in inventory. For sellers, it’s still a good time to sell, but they should keep an eye on the creeping inventory. For buyers, the market remains competitive, and they might still find themselves in competitive situations for desirable homes.
The Federal Reserve met again on June 13th and June 14th and actually didn’t raise the prime rate after 10 consecutive rate hikes. While the Federal Reserve chose not to raise rates in June, it doesn’t necessarily signal an end to potential rate hikes this year. It’s crucial to mark your calendars for the Fed’s next meeting on July 25th and 26th. Current predictions from the futures market suggest a 70% likelihood of a rate increase during this meeting. So, while we’ve seen relative stability in rates throughout June, hovering around 7 to 7.5%, we’re not entirely in the clear yet when it comes to potential rate hikes.
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7. What Does This Mean For Home Sellers
For home sellers in Charlotte, the current market conditions present a unique opportunity. Despite the high mortgage rates, the low inventory levels mean that there’s less competition for sellers. Many buyers have adjusted to the higher rates and are still actively looking for homes.
In recent weeks, we’ve seen multiple properties hit the market and quickly enter into multiple offer scenarios, often selling above the asking price. With the right marketing strategy and approach, sellers can find significant success in this market.
However, it’s important to keep an eye on the slowly increasing inventory. While it’s not yet enough to meet the high demand, any increase in available homes could potentially impact the seller’s market advantage.
Are you considering making a move? Give us a call today, we would love to discuss your goals and the market!
8. What Does This Mean For Home Buyers
For home buyers, the Charlotte market remains competitive. High mortgage rates and low inventory have created a challenging environment. More homes are coming onto the market, but they’re often snapped up quickly, especially those in desirable areas.
While it’s possible that mortgage rates may not drop in the coming years, it’s also important to consider that once rates start to decrease, many sidelined buyers may jump back into the market. This could potentially lead to a surge in home prices.
Despite these challenges, there are still opportunities for buyers. Homes are sitting on the market slightly longer than before, providing a small window for buyers to make their move. However, buyers should be prepared for potential competitive situations, especially for the more desirable homes on the market.
Remember, the decision to buy, sell, or invest in real estate is a personal one and can vary greatly depending on individual circumstances. If you’re considering making a move in the real estate market, my team and I are here to help guide you through the process.
If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions: 10 Questions You Must Ask Your Realtor Before Hiring Them.
Is it a right time for you to buy or sell?
We would love to connect with you, discuss your real estate goals and help you determine if now is a good time to buy/sell or if it is better to wait. Feel free to call us, text us, or email us. We would love to be your real estate resource of choice!
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