Charlotte, NC Region Housing Market Update:
The Charlotte region's housing market continued its strong performance of the first nine months of the year into October 2016. As the fall selling season began in the Charlotte area, closed sales, pending sales, average sale prices were all up. Days on market until sale were down 16.4% in October versus October 2015 and down 18.2% year to-date. The story for 2016 remains that supply continues to struggle to meet demand, especially in affordable homes.
October 2016 Closed Sales: up 3.4% versus October 2015 and up 7.0% year-to-date.
October 2016 Pending Sales: up 26.4% versus October 2015 and up 10.7% year-to-date.
October 2016 Average List Price: increased 9.7% to just under $296,000 versus October 2015 and up 8.0% year-to-date to just under $302,000.
October 2016 Average Sale Prices: up 7.6% to just under $257,000 versus October 2015. Median Sale Price was also up 12.7% to just under $210,000 as compared with October 2015. Year-to-date, average and median sale prices are up 6.2% and 6.8% respectively.
October 2016 Percent of Original List Price Received: up 1.6% to 96.2% compared with October 2015 and up 1.3% year-to-date.
October 2016 Inventory of Homes for Sale: down 23.1% versus October 2015, with new listings barely increasing by 2.7% in October 2016. New listings on a year-to-date basis are up an anemic 2.7%
- October 2016 Months Supply of Homes for Sale: down 30.0% to 2.8 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 holding steady at barely 2 months of inventory.
The message for Charlotte region home buyers remains what it's been all through 2016 and since 2015 and isn't likely to change much in the forseeable 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 many homes receiving multiple offers, buyers also need to make "clean" offers with a minimum of contingencies.
- While home prices are not "running away with themselves," they 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.... and no wonder as the average price of homes sold continues to increase month after month.
- With the housing affordability index down by 8.9% in October 2016, alone, and by 3.3% year-to-date, 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 as predicted).
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 forseeable 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 October 2016 were down 8.0% to 104 days as compared with October 2015 and are down 8.5% year-to-date to 107 days. Days on market till sale were down 16.4% to 51 days as compared with October 2015 and down 18.2% to 54 days on a year-to-date basis.
- 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.
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This monthly Charlotte, NC region housing market update is brought to you courtesy of Nina Hollander and Carolinas Realty Partners, RE/MAX Executive Realty, your Charlotte metro area real estate consultants.
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