So strap in, folks. This is your all-access pass to everything you need to know about the state of the Charlotte housing market. Join us as we peel back the layers of this crucial news and reveal what it means for you in the Queen City.

Charlotte North Carolina Housing Market Update:  May 2023

1. Housing Market Overview

2. Mortgage Rate & Effect On Housing Market

3. Number of New Listings

4. Number of Pending Listings

5. Number of Closed Homes

6. Average Sales Price

1. Market Overview

The Charlotte North Carolina housing market has remained hot over the past few months. Rates have stabilized over the past month, which has lead to a stabilization in our housing market as well. Buyer demand remains high and homes are selling quickly, not as quickly as they have in previous years.. However, the average days on market is falling rapidly. 

It seems buyers have grown accustom to the higher interest rates and are back in the market taking advantage of the Spring/ Summer season. We’re not seeing the euphoria that we saw this time last year, however many homes are selling with multiple offers and above asking.  Our average days on market has declined from 61 days in February to 43 days in April. But it still, on average, takes longer to sell than this time last year.  

2. Mortgage Rate & Effect On Housing Market

The mortgage rates have proven to be one of the most influential factors affecting our local housing market.  Mortgage rates over the last decade have been historically low , and they were driven even lower by the massive stimulus campaigns by Jerome Powell and the Federal Reserve during the pandemic. 

The average mortgage rate in 2021 was 2.96%, the lowest we’ve ever seen.  Now though, rates are back up and have more than doubled since the pandemic era lows.  This leaves many would-be buyers who locked in lower rates, in recent years, reluctant to wade back into the real estate market. 

We have recently seen the mortgage rates stabilize and hover around the 6-6.5% range.  This has caused our housing market to somewhat stabilize as well. 

The Federal Reserve

The Federal Reserve met again May 2nd & May 3rd. The Federal reserve raised the prime rate by 25 basis points. This brought their prime rate to a target of 5-5.25%, which is the highest it’s been since 2007.h However, this may not be bad news for our housing market.  Redfin’s Deputy Chief Economist, Taylor Maru says: “The latest Fed’s rate hike should not affect mortgage rates as it was an expected move.”

Conformation of a pause, which the Federal Reserve all but stopped short of doing could have downward pressure or long-term bond yields and home buyers could see mortgage rate relief.  

The good news is recent data indicates that the Federal Reserves’ tightening policy seems to be working.  Sen though, some analysts say maybe too well – even the ongoing turmoil in the banking sector.  

Headline inflation coded to 5% in March – for the first time in nearly 2 years. This is well below the June 2022 peak of 91%.  This is a good sign, even though were far above the Federal Reserve’s 2% goal. 

Which, on the brighter side, Jerome Powell, acknowledged that the committee feels its work is much closer to the end than the beginning.  He signaled a pause may be in the cards BUT he put a Kibosh on the notion of a rate cut anytime soon. 

Why is this important? 

Home buyer’s don’t buy for price point, they buy for payment. Remember the rule of thumb, for ever 1% change in mortgage rates, affects a buyers purchasing power by 10%.   

Mortgage rates have a strong impact on the housing market. Inflation and the Federal Reserve’s decisions will affect the mortgage rate.

3. Number of New Listings

In April, 1255 new listings hit the market, which was an 18% decrease from the number of new listings in March 2023. Due to seasonal trends, we should have seen an increase in the amount of homes coming onto the market, however that wasn’t the case.  We saw a 30% decrease in the amount of new listings year over year. This shows us that many homeowners are still choosing not to put their homes on the market, which is keeping the Charlotte housing inventory low.

Low inventory isn’t just an issue in Charlotte, North Carolina.  We’re seeing this across the board, all over the United States. New Listings were down 20% year over year in the United States.

Redfin’s Chief economist Daryl Fairweather described the downturn in new listing inventory with a phrase thats been used in the labor markets to describe employees doing minimum work: “Homeowners are quiet quitting the housing market” 

Even though the number of new listings hitting the market continues to decrease, the number of active listings on the market is up year over year.  There is an average of 2859 listings on the market this year.  Which is 25% higher than what we saw just a year prior. 

4. Number of Pending Sales

In April, 1309 homes in Charlotte NC accepted an offer. This was a 0% change from March 2023 and a 12% decrease from the amount of homes that accepted an offer in April 2022.  

Fewer homes listed = Fewer homes accepting offer’s.

So we saw the number of pending sales outpace the number of new listings, and with the exception of March, we’ve seen this trend since December 2022. This is important because this is a strong leading indicator as to where the market is going. The pending sales outpaced the number of new listings – so months inventory is decreasing. Overall, the number of available homes decreased over the past few months. 

Sellers Market | Decrease In Inventory

If the number of pending sales continuously outpace the number of new listings, then we can expect the amount of homes for sale will decrease. This means that there will be less homes avaliable and buyers will have less homes to choose from. If this trend continues, then you can expect for the market to eventually transition to a sellers market.

April  2023 New Listings: 1255 

April 2023 Pending Sales: 1309

With the exception of March, this trend has been consistent since December 2022. There are two factors that could have caused this trend:

1. Homeowners who would have put their homes on the market, are not.

2. The mortgage rates have slightly declined, increasing buyers purchasing power.

5. Number of Closed Homes

In April 1063 homes closed in Charlotte, which was a 13% decrease from March 2023 and a 27% decrease from April 2022. 

We have seen the number of closed homes continue to decrease, mainly due to fewer homes coming on the market. The number of closed homes is a lagging indicator. Since we have seen fewer newer listings and fewer pending homes, we can expect to see the number of closed homes to be lower. 

6. Average Sales Price

In April 2023, the average sales price was $526,500. This was a 2% increase from March 2023. Remember, sold home data is a lagging indicator. This means closed home data paints a picture of what happened 30-90 days previously in the housing market.  

We’ve seen the mortgage rates stabilize, which has lead to us seeing gradual changes in the price range, rather than extreme fluctuations in the market.  We’re still positive year over year, which is good for you home sellers.  

The average price in the United States is -3% year over year, so we’re outpacing the United States.  This is especially true when you look at markets like Austin, TX & San Francisco California!

For home sellers

The market has recovered over the past few months and home sellers once again have the upper hand.  Year over year prices are still positive and buyer demand is strong.  Also, if you bought in 2019, your homes value has increased by 75%. We aren’t seen the euphoria we saw this time last year, however many homes are selling with multiple offers and above asking.. you just need the right agent with the right approach

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. 

For home buyers

Buyers purchasing power has been decimated this year. Housing affordability nationwide is the worst it has ever been on record due to spiking home prices and interest rates, Bloomberg reports. 

However, if you are in the market to purchase a home, you more homes available.  There will still be competition on the best homes, so make sure you have everything ready to make an offer right when you find your dream home. 

Should you buy a home right now?

It really depends on what you are looking to accomplish, your goals, and your timeline. If you are wondering if NOW is the right time to purchase, visit Is NOW a Good Time to Buy a House in Charlotte? We explore who should be purchasing a home and who should wait a little bit. 

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! 

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com