Charlotte Region May 2022 Home Sales Slow. Record High Median Prices.

By
Real Estate Agent with Coldwell Banker Realty

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

What you need to know...

What it means for you... 

 

May 2022 home sales in the 16-County Charlotte Region were down year-over-year for a fifth consecutive month. It would appear that buyers are backing away from rising interest rates and home prices since late January, as the housing affordability index also continues to diminish. Pending sales were also down year-over-year for  fifth consecutive month. Year-to-date, buyer activity is down 4% compared with the first five months of 2021. However, month-over-month, sales had a slight increase of 1.3% compared with April 2022.

 

MEDIAN HOME SALE PRICES REACH NEW HIGHS IN MAY 2022

Despite, lower closed and pending sales, both average and median sale prices increased in May 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. Median sale price has also risen due to the higher price point of homes that are for sale.

 

A SLOWER PACE OF SALES TO COME?

These trends could be signaling a return to a slower pace of sales, more like what we saw in 2019 prior to the pandemic. Closed sales were down 7.3% year-over-year in May. Pending sales were also down 2.1% year-over-year. While, the drop in sales is a result of buyers backing away from higher interest rates and higher home prices which are impacting affordability, it can also be partially attributed to the low inventory of homes and the continued demand for homes.

 

HOW MUCH HAS THE REAL COST TO BUY A HOME INCREASED?

The real cost to buy a house has officially spiked over 50% in just 6 months. The housing affordability index continues to drop and impact sales volume. Housing affordability dropped 23.0% year-over-year and 22.8% year-to-date. Month-over-month, the index also dropped.

 

MARKET OVERVIEW FOR CHARLOTTE REGION: MAY 2022

 

Charlotte Region Housing Market Overview For May 2022

 

CHARLOTTE HOME INVENTORY LEVELS KEEP IT A SELLER'S MARKET

Housing inventory remained at very low levels.  With just 0.8 months  supply of homes (down 11.1% from 0.9 months in May 2021), we continued to see some of the lowest levels of inventory on record in the Charlotte region.  Inventory was 12.3% lower than in May 2021.  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 by some 620 homes in May 2022 since 2022. This is a positive for home buyers, although it should be pointed out that on a year-to-date basis in May 2022, new listings were down 4.5% versus May 2021. 

 

CHARLOTTE HOMES SOLD IN TWO WEEKS IN MAY

Averaging 14 days on market, homes continued to sell nearly as fast as they were listed. Days on market until sale were down 3 days year-over-year. They were also down 2 days month-over-month. With homes being purchased virtually as quickly as they are listed, current rates of increase in inventory will do little to alleviate the inventory shortage in the short term. Longer term, with buyer activity slowing because of rising rates and prices, should sellers continue to list, inventory will slowly increase and prices should also start to settle to some extent.

 

SELLERS BENEFITTING FROM INCREASING LIST TO SALE PRICE RATIOS

With a list to sale price ratio of 102.9% in May 2022 (up 1.3% 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 ratio was 0.1% higher in May 2022 than in April 2022. This metric is telling for sellers, as it looks at the ratio of sold price to list price.

 

OUTLOOK FOR THE SUMMER 2022 HOME SELLING SEASON

Moving forward into the summer 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 May 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 (16)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Nina. "Record" is a word synonymous with the Charlotte market. I t is beginning to sound like a "broken record", ha, ha! Enjoy your day.

Jun 29, 2022 05:02 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Nina - what can I say more other than to echo what Wayne Martin has already said.

Jun 29, 2022 05:10 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Wayne Martin hi Wayne... it will be interesting to see what June brings us and the coming summer months, which are usually active here in the Charlotte area.

Jun 29, 2022 05:21 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Grant Schneider hi Grant... while the market is correcting in small ways, they are very small ways and I don't see Charlotte being anything but a home seller's market for the next several months and beyond.

Jun 29, 2022 05:22 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

You certainly provide all of the information that one needs to know about what is going on in the Charlotte real estate market.

Jun 29, 2022 05:33 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Brian England good morning, Brian... let's face it... for most people their home is their single largest financial investment. They need to know the good, the bad, and the ugly to make appropriate decisions.

Jun 29, 2022 05:34 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Good morning with your very great blog. Have a great Summer as July is almost here...

Jun 29, 2022 06:05 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Eric Bouler hi Eric... hard to believe that another Independence Day weekend is almost here. Love that house you've pictured. Wishing you and yours a wonderful holiday weekend.

Jun 29, 2022 06:08 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, sales are down as there are so few homes to sell.   Amazing to still see increasing equity over 20%.

Jun 29, 2022 06:31 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Nina,

You always let the consumer know what is going on! Knowledge is power. You are right they need to know the good, the bad, and the ugly to make appropriate decisions. 

Jun 29, 2022 06:51 AM
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

Yes, maybe sales will be softening, and I too don't see this happening immediately. But, seller's don't wait,  It's a good market for now and in Charlotte, Nina will show you how it's done right!,

Jun 29, 2022 06:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox hi Joan... we will continue to see prices increase, albeit more slowly, so long as we have inventory levels that don't satisfy demand for homes.

Jun 29, 2022 07:09 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Dorie Dillard Austin TX hi Dorie... nothing worse than making large financial decisions in a vacuum. 

Jun 29, 2022 07:10 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 hi Sheila... I'm not seeing as much softening in the Charlotte area as yet as we are seeing in other parts of the country.

Jun 29, 2022 07:11 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina looks like the crazy strong Sellers Market in your area might finally be coming to an end and headed towards a more balance market.

Jun 29, 2022 11:33 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George Souto hi George... with less than one month of inventory, we are a long way from becoming a balanced market. All that will happen is fewer multiple offers and sales way over asking price. 

Jun 29, 2022 11:37 AM