Charlotte Region Home Prices Reach Record Highs In April 2022

By
Real Estate Agent with Coldwell Banker Realty

Latest news on the Greater Charlotte Region's real estate market in April 2022...

What you need to know...

What it means for you... 

 

With median home prices reaching record highs in April 2022, we saw the continuation of the strong housing market in the 16 county greater Charlotte region. Buyer demand continued to exceed pre-pandemic levels straining inventory and sales momentum. Sales were down for a fourth consecutive month as was new listing activity in 2022. A fast-paced market, which it clearly is with homes seeing 16 average days on market, means buyers have less time to make decisions and negotiate, as multiple offers in high-demand areas cause homes to sell and close quickly.

 

MARKET OVERVIEW FOR CHARLOTTE REGION: APRIL 2022

Charlotte Region Housing Market Overview For April 2022

 

Pent-up demand from the days of the pandemic continued to fuel much of the buyer demand, as did the years of steady population growth in the Greater Charlotte area. Population growth continues with some 120+ people moving to the Charlotte region each day. Closed sales were down 10.8% year-over-year in April. Sales were down 2% compared with March 2022. Pending sales were also down 4.0% year-over-year. The drop in sales in can be partially attributed to lack of inventory, partially to buyers backing away from higher interest rates and higher home prices which are impacting affordability. The increase in interest rates has essentially increased the carrying cost of a mortgage by one-third.

 

The housing affordability index continues to drop and impact sales volume. Housing affordability dropped 22.5% year-over-year by 20 points. Month-over-month, the index dropped 12 points. Year-to-date the housing affordability index dropped 22.6% in April by 21 points. Month-over-month the index is down 7 points on a year-to-date basis.

 

Both average and median sale prices increased in April 2022 year-over-year with median sale prices reaching record highs. The median sale price is the best measure of price over time, as it factors out extreme highs and lows in home prices. Month-over-month, average sale prices increased by approximately $20,000 and by approximately $10,000 year-to-date. Month-over-month, median sale prices increased just under $11,000 and $5,000 year-to-date.

 

Housing inventory remained at very low levels.  With just 0.7 months  supply of homes (down 12.5% from 0.8 months in April 2021), we continued to see some of the lowest levels of inventory on record in the Charlotte region.  With inventory 25.5% lower than in April 2021 and new listings down 1.5% year-over-year, demand remains high relative to supply.  This still presents a unique opportunity for sellers who are ready to list, as new listings continue to receive high visibility, spend less time on market and sell at premium prices.

 

New listings increased 9% by some 700 homes in April 2022 from March 2022, which is a positive for home buyers. However, with homes being purchased virtually as quickly as they are listed, this increase will do little to alleviate the inventory shortage in the short term. Longer term, with buyer activity slowing because of rising rates and prices, assuming home sellers will continue to list, inventory will slowly increase and prices should also start to settle a bit.

 

Averaging 16 days on market, homes continued to sell nearly as fast as they were listed. Days on market until sale were down 5 days (down 23.8%) year-over-year. They were also down 4 days month-over-month. 

 

With a list to sale price ratio of 102.8% in April 2022 (up 1.8% year-over-year), it's clear that home sellers continue to be in command of the market and are receiving well over asking price for their homes. The list to sale price ration is a full percent higher in April 2022 than it was in March 2022. This metric is telling for sellers, as it looks at the ratio of sold price to list price. Based on April’s average sales price of $449,500 for the Charlotte region, this metric suggests that on average sellers at this price point in April received all of asking price, in this case $449,500 plus an additional $8,991.62 (based on the average sales price in April 2022). 

 

Moving forward toward the spring selling season, lack of adequate inventory to satisfy buyer demand coupled with increasing interest rates and home price increases reducing affordability are what could hold the market back in terms of sales momentum. While buyers are frustrated by rising interest rates, rising home prices, razor-thin inventory, and inflation, it's not unreasonable to assume that serious buyers continue to actively look for homes. Buyers are motivated to act sooner rather than later because of rising mortgage rates and rising rents which continue to outpace monthly mortgage payments.

 

Want to know what this would mean for your family if you decide to buy or sell a Charlotte region home?

Curious About The Charlotte Region's Housing Market? Contact Nina Hollander.

We can help. 

Call us today at 704-779-0813 or contact us here.

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This Charlotte region housing market update for April 2022 is provided  by  Nina Hollander and Carolinas Realty Partners with Coldwell Banker Realty, Greater Charlotte residential real estate experts serving  Charlotte region home buyers and sellers for 20+ years.

If you're considering selling or purchasing a home in the Greater Charlotte region, I'd love an opportunity to earn your business, to exceed your expectations, and to show you why experience matters and how:

 "The Right Broker Makes All The Difference."

 

 

Read the full article at www.GreatHomesInCharlotte.com

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
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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.

 

Comments (28)

Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Nina - you might see this longer than other areas with all of the movement into Charlotte.

May 23, 2022 07:44 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, amazing the housing situation has not improved over several years - very strong Seller's market! 

May 23, 2022 07:46 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I am not thinking of a bubble bursting Nina Hollander, Broker but one has to wonder if the rate will slow down or peak this year or anytime soon. I don't find it crazy but it surly is incredible. 

May 23, 2022 08:21 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Happy Monday Nina and Thank You for the great information to share here in the Rain with us.  Make it a great start of the week!

May 23, 2022 08:40 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Families on the move will appreciate your outstanding local real estate reports.

May 23, 2022 09:01 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

It is remarkable how home prices keep hitting record prices as stocks, bonds and crypto markets pull back.  It will be interesting to see what happens over the next few months.

May 23, 2022 09:18 AM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Nina- your market still amazes me. As interest rates creep up I wonder what kind of impact that will have. 

May 23, 2022 11:03 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina it is great that homeowners are seeing a huge increase in their home equity, but on the flip side it is starting to price Buyers out of the market.

May 23, 2022 12:13 PM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

We are finally seeing a few price reductions here in East TN.  Seems like we might be finally moving back to "normal" markets.  I am hoping so.  Hope you have a fabulous day!

May 23, 2022 12:15 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Grant Schneider hi Grant... I agree with your assessment. There's still too much demand and not enough supply in the Charlotte market.

May 23, 2022 12:21 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox hi Joan... we've been a seller's market for at least six years now... it might slow down a bit, but I don't see the seller's market leaning towards being a buyer's market for a while.

May 23, 2022 12:22 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Bob "RealMan" Timm hi Bob... I have no doubt the markets will moderate somewhat... but I see no bubble bursting... we would need supply to exceed demand and that's not happening.

May 23, 2022 12:23 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Will Hamm thank you, Will, for popping by today... wishing you a good week ahead, as well.

May 23, 2022 12:24 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Thank you, Roy, for stopping by today... hope your week is off to a grand start!

May 23, 2022 12:24 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Raymond Henson, eXp Realty hi Ray... it still is all about supply and demand and in Charlotte supply is still short of demand. I also think many people see real estate as a safe haven long term for their money.

May 23, 2022 12:26 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Kathy Streib hi Kathy... no doubt the higher rates have caused a pull-back by some buyers here in Charlotte, as well. But we still have so much demand and even the little bit of new listings coming on isn't satisfying the overall demand. I'm working with clients right now and we've been outbid twice in the past week in multiple offer situations... and we're talking about homes in the $600+K range.

May 23, 2022 12:28 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George Souto hi George... no doubt about it... some buyers are falling by the wayside... at least temporarily. By the same token, it's not like many agents like myself haven't been "warning" them for some time now that this could be the case.

May 23, 2022 12:29 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Norma J. Elkins hi Norma... I guess it becomes a question of what is "normal." We've been a seller's market for 6+ years... we might be seeing a slower rate of appreciation in home prices and fewer multiple offers, but right now we still have more demand than supply so if a home is priced and marketed right, it sells quickly. In April, they sold in 16 days.

May 23, 2022 12:31 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Charlotte home buyers and sellers are sure to value your real estate market report, Nina.

May 23, 2022 08:57 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Myrl Jeffcoat thanks, Myrl... for popping by. Trust your week has gotten of to a wonderful start.

May 24, 2022 05:26 AM