Special offer

How Charlotte, NC's Home Prices Are Impacted By Supply And Demand

By
Real Estate Agent with Coldwell Banker Realty 179530

 

Supply and demand -- most of us know that supply and demand are the basis of economic principles we learn in Economics 101! The more supply of homes, the lower the price of homes. The lower the supply, the higher the price. And real estate is NO exception. Anytime we have less than six months of housing inventory, it's a seller's market and we can expect home prices to increase.

 

Did you know that nationally and in the Charlotte, North Carolina region we have not seen a six month supply of homes since August 2012 -- that's 5 years!

 

The Charlotte, North Carolina region has seen a precipitous drop in housing inventory since August 2012, when we began the year with 8.8 months of inventory and were clearly a buyer's market. Since August 2012 our housing inventory has dropped each year and home prices have increased each year, as well.

  • August 2012:  6.9 months of housing inventory (down from 11.8 months in August 2011). In one year, the Charlotte housing market went from very much a buyer's market to a neutral market. By August 2012, the average price per home sold increased 3.5% for the year-to-date.

  • August 2013:  5.4 months of housing inventory putting Charlotte into a seller's market in just one year. By August 2013, the average price per home sold increased 6.1% for the year-to-date.

  • August 2014:  5.2 months of housing inventory with the average price per home sold by August 2014 increasing 4.2% for the year-to-date.

  • August 2015:  3.8 months of housing inventory with the average price per home sold by August 2015 increasing 4.7% for the year-to-date.

  • August 2016:  3.0 months of housing inventory with the average price per home sold by August 2016 increasing 5.9% for the yearto-date.

  • August 2017:  2.6 months of housing inventory with the average price per home sold by August 2017 increasing 5.9% year-to-date.

  

Is it any wonder that so many Charlotte region home buyers are suffering from sticker shock these days? But so long as our inventory remains low and demand continues to outstrip supply, Charlotte buyers cannot expect home prices to do much but continue to increase. 

 

The infographic below clearly illustrates just how supply of homes for sale and the demand for homes for sale impact housing prices whether you are in the Charlotte region or another part of the USA.

 

Impact of Supply and Demand on Housing Prices In Charlotte and Elsewhere

 

Contact Carolinas Realty Partners if we can answer any questions you might have about the Charlotte metro housing market or about what buying a home listing your home for sale might entail.

 

If you're thinking about buying a Charlotte area homecheck out our  Buyer's Guide to "Things To Consider When Buying A Home."

  

If you're thinking about selling a Charlotte area home, check out our Seller's Guide to "Things To Consider Before Selling Your Home."

 

 

Looking for a new home? Let Nina Hollander, a RE/MAX agent guide you.

 

 

SEARCH ALL CHARLOTTE METRO AREA HOMES FOR SALE

 

WONDERING WHAT YOUR CHARLOTTE METRO AREA HOME IS WORTH? 

 

 

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

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From The Greater Charlotte Area
Search For All Charlotte Area Homes: www.GreatHomesInCharlotte.com 

Charlotte Magazine 5-Star Customer Satisfaction Award Winner Since 2007

 

 Connect with me also on these sites:  

 

facebook twitterlinkedinpinterest

  

                                                                                                                                          

Oh by the way, I'm never too busy for any of your referrals!

 

Find Your Charlotte Home

 

How Much Is My Home Worth       Free Charlotte Relocation Package

 

 

 

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.

 

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 and Home Specialists

What a great time for Charlotte homeowners to start the process now and get their home listed and sold by Nina Hollander!

Sep 15, 2017 04:43 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Nina, 

This info is pretty impressive for sellers. What do you think has been the cause for 65 months of continual demand outstripping supply. Are more people moving to the area than there is housing?  My son, a former marine was stationed in NC. I wonder if military expansion has had an influence.

Sep 15, 2017 04:49 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

This is so well done and I am sure that sellers will be very impressed with your in depth and long view knowledge of the Charlotte housing market! 

 

Sep 15, 2017 04:58 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sheri Sperry - MCNE® ~ hi Sheri... sellers are not listing their homes is the cause of this. And as the market improved, more buyers entered the market. Now we have a total disconnect, especially as sellers fear selling their home and not finding a new one. I can't speak to military expansion in the Charlotte area, as the bases here are too far a way.

Sep 15, 2017 04:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lise Howe ~ good morning, Lise, and thank you. I'm sure it's not too different a picture in your market.

Sep 15, 2017 04:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 ~ hi Sheila and Larry... thanks. And that's the rub. I have people who'd like to sell their larger 2-story homes and move into a smaller patio-style home and while they will get a good price for their home, the cost of the new homes is setting them back on their heels.

Sep 15, 2017 05:01 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Nina. Good old supply and demand. Below a 3 month supply and you have thinventory! Enjoy your day! 

Sep 15, 2017 05:28 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Nina - oh yes Charlotte is an illustrative example of economics 101 

Sep 15, 2017 06:29 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina, great infographics showing your very strong Seller's market in Charlotte!  

Sep 15, 2017 06:46 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox ~ hi Joan... thanks. That is actually a national infographic and not one for Charlotte, itself. You can use it to write "around" your market to illustrate.

Sep 15, 2017 06:50 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Grant Schneider ~ hi Grant... Charlotte is not the only city in the nation with this issue... I think more of them are in a state of thinventory than not by now.

Sep 15, 2017 06:51 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Wayne Martin ~ hi Wayne... and what my numbers for the region don't show is how many area of the Charlotte metro area have less than 2 months of inventory and some even less than one.

Sep 15, 2017 06:52 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Nina Hollander A fine post and well-written that clearly illustrates pricing and the efect of inventory levels. Thanks!

Sep 15, 2017 07:39 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Hi Nina, it looks like prospective buyers in the Charlotte area don't have a lot of inventory!

Sep 15, 2017 07:58 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I don't think people think a lot about supply and demand. They hear the words, but it's sorta meaningless or they don't believe it applies to real estate when it does. 

I'm also not sure I understand that NAR chart. Is the one on the left demand and the one on the right supply? 

It's funny how great minds think alike, Nina. I was just explaining supply and demand to a seller yesterday, using it as an excellent reason to sell.

Sep 15, 2017 08:08 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents ~ yes, the map on the left is showing demand, while the one the right is showing supply. So if you look at California, it shows strong demand and weak supply.

Sep 15, 2017 08:15 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sybil Campbell ~ hi Sybil... Charlotte's inventory has been drying up for 5 years now and for the past three it's been critically low, especially in affordable housing.

Sep 15, 2017 08:16 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 ~ hi Sandy and Norm... thank you. I keep hearing people blather about bubble and they don't even understand what that means. Right now the biggest reason home prices keep going up in Charlotte and many other areas is because of low supply of homes while demand keeps increasing. This is not a bubble... it's supply and demand driving the market.

Sep 15, 2017 08:17 AM
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Irvine Realtor®

Charlotte, NC, sounds like Irvine, CA, Nina.  First Time Homebuyers can only afford Condos around here, but Condo prices are getting pricey now too.

Sep 15, 2017 09:22 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Raymond Denton ~ hi Raymond... we are having the same issues with townhomes here in Charlotte.... and in the better parts of town they also are quickly becoming unaffordable.

Sep 15, 2017 11:53 AM