Buyers, buyer’s agents, and real estate analysts are scratching their heads over the ongoing pace of home sales. For the last two years, and especially here in Charlotte, NC, we’ve witnessed a steady decrease in the inventory of homes for sale alongside a steady increase in the median sales price. It’s been a one-sided seller’s market, one that shows no signs of slowing down any time soon. So a lot of people are wondering how long this can go on.
Like the marathon dancers from the Roaring Twenties, the seemingly impossible pace of the national real estate market just keeps on keeping on. The seller’s market is so strong in places that new listings are snatched up in a day or two, and lucky sellers (and their agents!) quickly receive multiple offers to choose from. What’s more, many home buyers must offer more than the asking price if they hope to obtain their first choice. With the employment rate at a healthy national average of 4.4%, and the overall economy showing clear signs of continued vitality, it’s possible this dance could go on for some time.
July’s market indicators back up this scenario. As of July 31, 2017, the median sales price rose yet again, this month by 9.8% to a new average of $236,000. That’s an increase of $21,000 in just one year. The inventory of homes on the market dipped by 2,511 units, a staggering 19.8% drop, to 10,174 homes. This leaves only a 2.6 month supply of homes for buyers to select from, a decrease of 25.7% from July, 2016. Little wonder that the percent of original list price received saw a bump of .6% to a new high of 97.3%. Seller’s market indeed.