Lack Of Inventory Impacting Home Sales Nationally AND In Charlotte

By
Real Estate Agent with RE/MAX Executive | Charlotte, NC

 

 

Many regions across the nation are suffering from a severe lack of housing inventory -- and that includes the Charlotte metro region. June 2017 saw the 25th consecutive month of inventory declines nationally... this, in turn, has resulted in increased home prices (now 64 consecutive months of year-over-year price increases). Lack of inventory and higher home prices have impacted affordability and availabilty for many home buyers, resulting in flat, if not lower, closed sales, as the infographic below clearly indicates.

 

On the good news front, mortgage rates remain low... so this is a good time to buy and lock in your payment for years to come before both home prices and rates increase further. And if you're a a home seller, listing your home for sale now also works to your advantage... you'll get a great price, sell quickly, and will be able to move on to the next house before prices and mortgage rates increase further. At some point, it's time to move on with your life and not worry about timing the market perfectly for the absolute highest price ever.

 

 

How Lack of Inventory Impacts The Housing Markets

 

HOW THE CHARLOTTE, NC REGION COMPARES

 

The Charlotte metro is certainly "feeling" the impact of "thinventory" in the region. As of June 2017:

  • Inventory was down 20.8% and the months supply of homes available for sale was 2.5 months, down 28.6%. While the national market is still somewhat more "balanced" at 4.3 months of inventory, the Charlotte region is totally a seller's market and we have pockets where inventory is barely 1 month. In the Charlotte region, as of June 2017, inventory for single family homes stood at 2.7 months while that for condos/townhouses stood at only 1.4 months

  • In June 2016, this lack of inventory resulted in closed sales in the Charlotte region were down 3.8%, although for the first two quarters closed sales are in positive territory at 5.9%.

  • Charlotte's home affordability index is down 7.7% in 2017 and down 5.7% as compared with June 2016. This indicates there are buyers who are being priced out of the market.

 

With relatively low unemployment in the Charlotte area and continued wage growth, low inventory of homes for sale would appear to be the primary culprit for any sales malaise rather than the lack of demand for homes. 

 

 

  LOOKING FOR A HOME IN THE CHARLOTTE AREA? CAROLINAS REALTY PARTNERS CAN HELP!

 

 WONDERING WHAT YOUR CHARLOTTE AREA HOME IS WORTH IN TODAY'S MARKET? 

 

 

SEARCH ALL CHARLOTTE AREA HOMES FOR SALE HERE

 

 

This housing market update is brought to you courtesy of Nina Hollander and Carolinas Realty Partners, RE/MAX Executive, your Charlotte metro area real estate consultants. 

 

If you are considering selling or purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that:

 "The Right Broker Makes All The Difference."

 

 

Posted by

 

SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

Nina Hollander, Broker, Realtor / REMAX / Carolinas Realty Partners / Ph: 704.779.0813 / F: 704.341.3346 / E: Nina@NinaHollander.com / W: www.GreatHomesInCharlotte.com

Nina Hollander
Broker, Realtor, CRS, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with RE/MAX Executive Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: http://activerain.com/blogs/ninahollander
Search for Charlotte Area Homes: www.HomesInCharlotteArea.com

2007 - 2016 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Roy Kelley ~ hi Roy... there are many people who really don't understand how home values increase or why. Right now it's less speculation and just supply and demand.

Aug 07, 2017 04:59 AM #9
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Gabe Sanders ~ h Gabe... exactly! It's a bit of a viscious cycle and I'm afraid quite a few people will be priced out of the market regardless of inventory as prices might go up less quickly but I doubt will go down.

Aug 07, 2017 05:00 AM #10
Ambassador
2,418,980
Paul S. Henderson, CRS, REALTOR®,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

You always seem to keep your finger on the pulse of what's Happening everywhere Nina Hollander 

Aug 07, 2017 05:29 AM #11
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Paul S. Henderson, CRS, REALTOR®, ~ hi Paul... somehow, don't you think we need to sound somewhat intelligent about what's happening in the markets as a whole and more locally to maintain credibility?

Aug 07, 2017 05:33 AM #12
Rainmaker
2,694,693
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Nina -- many communities across the country are screaming for well-priced and well-presented properties to hit the market.   The numbers you share show that the right real estate representation is necessary for those interested in making a move.   Challenging times like you are experiencing in Charlotte requires the skills of a professional such as yourself.   

Aug 07, 2017 06:01 AM #13
Rainmaker
2,343,059
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

It has been the same here, i am seeing a trend though of increased listings, it is slight, but any increase is welcome Nina Hollander 

Aug 07, 2017 06:42 AM #14
Rainmaker
1,631,095
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I know that many sellers will take advantage of the low inventory and be able to get more for their home than they thought, if they are ready to move.

Aug 07, 2017 06:43 AM #15
Rainmaker
2,584,948
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

Oh yes this is so true here too, especially in our condo market. Sellers in Charlotte, now is the perfect time to work with Nina Hollander and get your home listed and sold!

Aug 07, 2017 08:05 AM #16
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Michael Jacobs ~ hi Michael... it's amazing how many markets can be "substituted" for each other these days in terms of the lack of inventory.

Aug 07, 2017 08:30 AM #17
Rainmaker
1,295,725
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Nina - I was just talking this morning to the sales representative for my new development here in Florida.  She said she has never seen a summer like this for business.  New homes can't be built fast enough.

Aug 07, 2017 08:31 AM #18
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 ~ Charlotte is not a huge condo market; we do more townhomes. But that being said we don't have but about 1.4 months of inventory in this category and in some areas under one month.

Aug 07, 2017 08:31 AM #19
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Brian England ~ hi Brian... I think too many sellers are sitting on the fence hoping to time the market just right and get more money. They forget that no one can time the market so precisely and that they might get more for their home but they will also spend more for the next home.

Aug 07, 2017 08:32 AM #20
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Grant Schneider ~ hi Grant... from everything I'm reading, new construction is not keeping up with demand. And it's further exacerbated by the fact that so much new construction is for higher end homes and not satisfying the demand for more modestly priced homes.

Aug 07, 2017 08:33 AM #21
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Scott Godzyk ~ hi Scott... I agree that any increase in listings is a big plus... but the inventory still flies out the door so it feels like there's little to no impact or relief.

Aug 07, 2017 08:34 AM #22
Rainmaker
2,261,574
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hey Nina,  Inventory levels are beginning to go up a little in our area but back to schools settles the people in that are here but we have more people moving into are state weekly.

Aug 07, 2017 09:05 AM #23
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Will Hamm ~ hi Will.... I'm seeing small increases in inventory in pockets of our market, but it doesn't seem to have a visible impact outside of keeping closed sales flat instead of down.

Aug 07, 2017 09:08 AM #24
Ambassador
3,249,867
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Nina

It's certainly an issue many of us are seeing. We were seeing a rise in inventory but with summer it is dropping off again, from what I have seen so far. Affordability is becoming more of an issue in some areas, especially near the coast.

Jeff

Aug 07, 2017 10:28 AM #25
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi Jeff... it really is all about affordability in my market right now. Too many people getting priced out because there's virtually no inventory under $300K.

Aug 07, 2017 11:08 AM #26
Rainmaker
3,132,140
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Nina

The numbers coming to the market for sale is not keeping up with the demand.

Good luck and success.

Lou Ludwig

Aug 07, 2017 06:52 PM #27
Rainmaker
1,975,309
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Lou Ludwig ~ good morning, Lou... and this precisely why prices are going up so quickly for homes.... all about supply and demand.

Aug 08, 2017 03:21 AM #28
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