For the Charlotte region’s residential real estate market, inventory continues to plummet while housing prices continue to go up. Bottom line? Homebuyers have fewer and more expensive options compared to last year.
“Inventory challenges were already an issue even before the pandemic, and they continue to persist. This means home prices in our market will likely continue to rise due to increased competition among buyers in a tight market,” 2020 Canopy Realtor Association/Canopy MLS President John Kindbom said.
Homes are also selling faster — on average, they go under contract in 36 days compared to 38 in July 2019. This is according to The Canopy Realtor Association’s data for the Charlotte region’s market, released on Tuesday.
Inventory: The data show that inventory is down nearly 50 percent from last year. In July 2020, 5,580 homes were for sale; in July 2019 there were 10,629.
This isn’t too far from what agents predicted might happen this summer, though.
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Cost: List price is way up, about 16 percent, and sales price — the amount buyers actually paid — rose, too. The median sales price ($285,000) and the average sales price ($344,991) rose 7.5 percent and 10.6 percent, compared to this time last year.
List, median, and average sales prices are all slightly up (about 0.2 percent) from last month. And there’s a good chance we continue to see a steady increase month over month.
Mortgage rates: It’s a seller’s market right now, but that doesn’t mean it’s a bad time to buy.
You’ve probably heard by now that mortgage interest rates have reached “historic lows” — with some conventional 30-year fixed-rate loans now under 3 percent — which of course brings down the cost of monthly payments. Despite having fewer, more expensive options, these low rates are likely what’s motivating people to buy right now.
Suburbs are in, Uptown is out: Pending sales in desirable exurbs of Alexander and Cleveland Counties more than doubled this July compared to 2019. Same goes for Davidson, which is located within Mecklenburg County.
Meanwhile, Uptown has had a year-to-date slump with 16.7 percent drop in average home sale price and fewer sales than 2019. July was a better month than others, though, with an increase in new listings and pending sales.
Zoom out: Charlotte is more expensive to live in than other areas in North Carolina, like the Triangle area, for example. MLS data shows homes there (Raleigh, Durham, Chapel Hill) sold for $339,323, on average, in July — $5,000 less than in Charlotte.
But the Queen City is still less expensive than other big cities. In the Washington, D.C. area, for instance, the median home price for July was $530,000, close to double Charlotte’s median sales price of $285,000. Homes in D.C. are also getting snatched up quicker, with an average of only eight days on the market.
Charlotte, the Triangle, and D.C. are all following the same general trends, though: inventory down, housing cost up.
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