Charlotte, NC Region Housing Market Update:
The Charlotte region's housing market ended the eighth month of 2017 with home prices up and pending and closed sales slightly down as compared with August 2016. Both average and median sale prices were up in August 2017. Inventory and the months supply of homes remain low and well below what they were one year ago, which are a primary cause of the slowdown in sales.
August 2017 Closed Sales: down 3.8% versus August 2016. Year-to-date, closed sales were up 6.3%.
August 2017 Pending Sales: up 15.5% versus August 2016 and up 7.1% year-to-date.
August 2017 Average List Price: increased 6.6% to just under $301,000 versus August 2016. Year-to-date, average list prices are up 5.1% to just over $317,000.
August 2017 Average Sale Prices: up 1.0% to just over $275,500 versus August 2016 and up 5.9% year-to-date to just over $273,000. Median Sale Price was also up 5.0% to $230,000 as compared with August 2016 and up 10.2% year-to-date.
August 2017 Percent of Original List Price Received: up 0.4% compared with August 2016 to 97.0% and up 0.7% year-to-date to 97.0%.
August 2017 Inventory of Homes for Sale: down 18.6% versus August 2016.
- August 2017 Months Supply of Homes for Sale: down 23.5% to 2.6 months. Charlotte region's housing market continues to be very much a seller's market, as it has been throughout the year, with parts of the Charlotte metro area having barely one month of inventory.
The message for Charlotte region home buyers remains what it's been since 2015 and isn't likely to change very much in the foreseeable future:
- The supply of homes available to buy remains very tight and those that are on the market are selling more quickly with minimal negotiating room. In prime neighborhoods, we see many homes going into contract within days of listing.
Home buyers continue to have fewer options to choose from and need to make decisions and offers more quickly than ever. With homes receiving multiple offers, buyers also need to make "clean" offers with a minimum of contingencies. As the chart below shows, in the $100,000-200,000 price points, the months supply of homes is hovering at barely one month. Supply of condos and townhomes is even tighter.
Change In Months Supply of Homes For Sale From August 2016 To August 2017
Home prices are continuing a steady increase and housing affordability continues to decrease. Buyers must be prepared to pay more for a home and to expect to negotiate less off the asking price. Depending where in the Charlotte metro area buyers are looking, they may not be able to negotiate at all and should expect to see bidding wars that drive the final sale price above asking price.
For buyers looking for homes priced under $250,000, and especially under $200,000, the selection is very slim these days.... impacting the average prices of homes sold which continue to increase month after month throughout 2016 and now into 2017. The graph below shows just how much less inventory there is in home priced under $250,000.
Change In Inventory Of Homes For Sale From August 2016 To August 2017
- With the housing affordability index down by 1.9% in August 2017, a strong argument can be made that home buyers should be making purchase decisions sooner rather than later, as affordability will most likely continue to decrease (and even more so if interest rates rise in 2017). First time home buyers are feeling the squeeze these days given the lack of affordable homes under $300,000 available for sale.
The message for Charlotte region home sellers also remains what it's been since 2015 and doesn't appear poised to change much in the foreseeable future:
When a home is priced right, staged right, and marketed right, it will sell and, on average, should sell in less than two months. The days from list to closing in August 2017 were down 8.2% to 90 days as compared with August 2016. Days on market till sale were down 8.7% to 42 days as compared with August 2016. Cumulative days on market were also down 5.6% to 51 days in August 2017 versus August 2016.
Sellers who have been overly aggressive in pricing their homes are not seeing their homes sell quickly, if at all. Pricing is still key even in a strong seller's market.
- With homes selling faster, sellers need to be prepared to move quickly and to have back-up plans for a new residence at the ready.
This monthly Charlotte, NC region 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: