Real Estate Market Update for

Single Family Homes in Mecklenburg County North Carolina Area 5 including:

Charlotte Neighborhoods West of Providence Road and East of Park Road including, Cherry, Dilworth, Myers Park, Barclay Downs, Foxcroft, Beverly Woods, Cameron Wood, South Park, Quail Hollow, Olde Providence, Shadow Lake, Stone Creek Ranch, and Ballantyne. 

Data gathered for April 1 2008 - April 30 2008

In April 2008, 441 single family deteched homes were listed for sale in Area 5.  This is an increase of 5.5% from April 2007 when 418 single family units were listed for sale.  As of the date of this blog, that brings the total active single family units 1,286.

In April, 161 single family homes were placed under contract, which is a 34.81% decrease in the number of sales the year prior (247).

In April, only 136 single family homes placed under contract during April and in prior months closed, 40.35% fewer homes than in April 2007 (228).

Sellers received 92.92% of their asking price in April 2008.  This is down sharply from the year prior when sellers received 97.69% of their asking price. 

The average days on market for single family detached home increased in April 2008 to 76 days.  This is 40.74% increase in the amount of time it took sellers to receive a contract from the year prior (54 days).

The average sold price in April 2008 was 3.04% less than during the same time a year earlier.  The aveage sold price in April was $499,967, down from $515,650 in April 2007.

My Analysis of what is and what is to come

What looked to be a record month at the end of March has fizzled during the month of April.  The stats look more like February instead of the beginning of the spring market.  There is approximately a 7.98 month supply of homes on the market and that does not include all builder new-construction inventory.  Neighborhoods like Stone Creek Ranch in the south have at least a hundred lots (my guess only) to sell as well as others in the area.  This may bring the inventory numbers up to 10 or 11 months supply of homes.  The result of lots of supply and slower demand is the reduction in the price of homes (the reason for the 95.92% of asking price received). 

Since buyers have such a supply of homes to choose from, its very important that sellers are evaluating the market and maybe even the price of their home weekly to see which homes the buyers are writing contracts on.  They should also consider how their home stacks up to their competition, which may mean asking their listing agent to go on a tour of those homes one afternoon.  If your agent isn't a neighborhood expert, this will be an elightening experience for them as well.  For most, this type of market is new to them so with fewer buyers with more options means that your finger must be on the pulse of what's happening locally. 

The late spring and summer months should prove interesting.  How the ever increasing cost of fuel will play into the housing market is yet to be fully realized.  Will buyers look for homes closer to work, closer to public transpotation, or just simply shop for a less expensive home? 

Jonathan Osman
Charlotte NC Homes, Charlotte Real Estate