Charlotte Region July 2022 Home Sale Prices Increase | Sales Down

By
Real Estate Agent with Coldwell Banker Realty

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

What you need to know...

What it means for you... 

 

July 2022 home sales were down year-over-year for a seventh consecutive month. Pending sales were also down year-over-year for a seventh consecutive month.

 

Higher home prices coupled with higher interest rates have impacted affordability and cooled buyer demand. Home buyers are frustrated by higher rates, rising home prices, and economic uncertainty. As a result home sales and mortgage applications have fallen since last year at the same time. As pending sales are a good indicator or future sales and buyer demand, we can expect lower closed sales in the months to come.

 

MEDIAN HOME SALE PRICES REACH NEW HIGHS IN JULY 2022

Despite, lower closed and pending sales, both average and median listing and sale prices increased in July 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. A contributing factor to the increase in median sale price is the higher price point of homes that are for sale.

 

A SLOWER PACE OF SALES TO COME?

These trends are signaling a return to a slower pace of sales, more like what we were seeing in 2019 prior to the pandemic. Closed sales were down 21.5% year-over-year in July. Pending sales were also down 14.6% year-over-year.

 

HOW MUCH HAS THE REAL COST TO BUY A HOME INCREASED IN 2022?

The real cost to buy a house has officially spiked over 50% since the start of the year. The housing affordability index continues to drop and impact sales volume. Housing affordability dropped 20.9% year-over-year by 18 points. Year-to-date the housing affordability index dropped 23.3% by 21 points.

 

HOUSING MARKET OVERVIEW FOR CHARLOTTE REGION: JULY 2022

 

Charlotte Region Real Estate Sales Snapshot For July 2022

 

CHARLOTTE REGION HOME INVENTORY INCREASED, BUT STILL IN "SELLER TERRITORY" & NEW LISTINGS DROPPED IN JULY 2022

Housing inventory increased for a second consecutive month in July 2022. Inventory is up 23.9% compared to the same time last year and the months supply of housing is up from 1.1 months to 1.4 months year-over-year.

 

Continued increases in inventory should help cool price appreciation. Nonetheless, the 1.4 months supply of homes keeps Charlotte region in "seller territory." We need four months of inventory to consider it a "balanced" market, much less a buyer's market, which would need six months of supply.

 

While housing inventory has increased, new listing activity decreased in July 2022 compared with July 2021 and is still down 3.1% year-to-date compared with the same time frame one year ago.

 

CHARLOTTE REGION HOMES SOLD QUICKLY IN JULY 2022

Averaging 15 days on market, homes continued to sell quickly, increasing by one day year-over-year and month-over-month. Year-to-date days on market dropped by 2 days versus July 2021. With homes being purchased quickly, increases 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.

 

CHARLOTTE REGION LIST TO SALE PRICE RATIOS OVER 100% IN JULY 2022

With a list to sale price ratio of 100.3% in July 2022 (down 1.5% year-over-year and down 1.6% month-over-month), home seller  are still receiving over listing price for their homes. Continued declines in the list to sale price ratio could mean that those fewer buyers who continue to shop for a home are carefully scrutinizing price. 

 

OUTLOOK FOR HOME SALES IN CHARLOTTE REGION

Moving forward for the remainder of 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 will hold the market back in terms of sales momentum. While buyers are frustrated by rising interest rates, rising home prices, 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.

 

There seems to be lots of talk about a market crash. However, the affordability issues the Charlotte Region market is facing do not point to a housing bubble or market collapse. Housing bubble are a result of speculation and not of rising buyer demand. Speculation is not driving Charlotte area housing demand. Historically, there has not been sufficient housing built in the Charlotte region to keep up with the demand we've seen over the past years and the population growth in the region.

 

We will also continue to see affordability challenges for first-time buyers, as well as challenges for renters to save for a down payment.

 

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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MEDIAN HOME SALE PRICE TRENDS IN THE CHARLOTTE REGION

     

 

EXPERT INSIGHTS ON WHERE THE MARKET IS HEADING FOR THE REST OF 2022: VIDEO

 

 

 

LOOKING FOR YOUR DREAM HOME IN THE CHARLOTTE REGION?  

 

FREE Home Buyer Guide: “Things To Consider When Buying A Home”

 

WHAT EXPERTS ARE SAYING ABOUT TODAY'S MORTGAGE RATES: VIDEO

 

 

SEARCH ALL CHARLOTTE AREA HOMES FOR SALE 

 

 

WONDERING WHAT YOUR CHARLOTTE AREA HOME IS WORTH IN TODAY'S MARKET? 

Wondering What Your Charlotte Area Home Is Worth?

 

 

TOP SIGNS IT'S TIME TO SELL YOUR HOME ACCORDING TO EXPERTS: VIDEO

   

 

FREE Home Seller Guide: “Things To Consider When Selling Your House”

 

THINKING OF SELLING YOUR HOME? CHECK OUT THE COLDWELL BANKER MARKETING ADVANTAGE

 

This Charlotte region housing market update for Julu 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 (30)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Jeffrey DiMuria 321.223.6253 Waves Realty for sure, Jeff. And at the same time, so long as we are under 4 months of inventory we will continue to see price increases, although at a slower pace.

Aug 17, 2022 06:22 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Bill Salvatore - East Valley hi Bill... so far, in my area, my role as a buyer's agent has not particularly eased up... still a shortage of homes, especially of affordable homes.

Aug 17, 2022 06:23 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 hi Sheila... our inventory is up but not always in the places people really want to buy. And in July, new listings were down... so despite fewer buyers in the market demand is still greater than supply.

Aug 17, 2022 06:24 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Eric Bouler good morning, Eric... and thanks for stopping by today. Wishing you a wonderful Wednesday.

Aug 17, 2022 06:24 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, sounds like Charlotte is still a very HOT market in general.  Great overview of the current market.

Aug 17, 2022 07:39 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox hi Joan... buyer traffic is down and sales are down... but in July we actually saw fewer new listings, record high median home sale prices. It's a changing market but still very strong.

Aug 17, 2022 07:50 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Nina, for sharing your outstanding local real estate reports.

Aug 17, 2022 07:55 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Thank you, Roy, for stopping by today. Wishing you a good rest of the day.

Aug 17, 2022 08:21 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Nina,

I read some of the comments, and in Sedona, we have seen the market move toward the 2019 seasonal sales.  Summer is traditionally slow for us.  Even tourism is back to normal.  I guess because of the fog of the last two years, people forgot what our normal seasons were like!  Fall is normally our second busiest season behind spring.  This winter Arizona will have the Superbowl so we should also see increased activity.

Aug 17, 2022 08:38 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sheri Sperry - MCNE® hi Sheri... increasingly, I see very little seasonality to our sales here in the Charlotte area. That's been the case for some years now.

Aug 17, 2022 09:18 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Nina- even though I'm not an agent I like to read about what's going on in the different markets I'd go with what Wayne Martin said. 

Aug 17, 2022 09:23 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Kathy Streib hi Kathy... well, I certainly appreciate your faithful reading of my market reports for the Charlotte area.

Aug 17, 2022 10:10 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina home prices seem to continue to go up and up, with no signs of that changing any time soon.

Aug 17, 2022 12:40 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George Souto hi George... I don't see home prices dropping any time soon. They might not appreciate as much as they did the past two years, but they will continue to increase in in-demand areas.

Aug 17, 2022 01:06 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

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

Aug 17, 2022 05:13 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Your markets always see to buck most trends; I’m seeing anyway 🙂

Aug 17, 2022 09:39 PM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Nina Hollander, Broker, I'm seeing longer marketing days and price decreases in MLS in August. July was a good month but I see the change for sure. 

Aug 18, 2022 03:17 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Myrl Jeffcoat good Thursday morning, Myrl. Thanks for poppy by... wishing you a terrific day.

Aug 18, 2022 04:08 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Paul S. Henderson, REALTOR®, CRS good morning, Paul... our market is shifting for sure... but that being said it is also showing strength in high-demand areas.

Aug 18, 2022 04:09 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Beth... we are certainly not seeing the frenzy we saw last summer or even earlier in 2022. A lot here depends on what area of our market you might be looking at, since the Charlotte region covers two states and 16 counties.

Aug 18, 2022 04:20 AM