Charlotte Region Home Prices Up, Sales Down: August 2022

By
Real Estate Agent with Coldwell Banker Realty

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

What you need to know...

What it means for you... 

 

August 2022 home sales were decreased year-over-year for an eighth consecutive month. Pending sales were also down year-over-year for an eighth 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 should expect fewer closed sales in the months to come.

 

The fact that we also see fewer new listings coming on the market indicates Charlotte region will continue to experience inventory challenges, which impact home price appreciation.

 

MEDIAN HOME SALE PRICES REACH NEW HIGHS IN AUGUST 2022

Despite, lower closed and pending sales, average list and sale prices increased in August 2022, year-over-year. Average list and sale prices also increased since July 2022.  Median sale price also increased year-over-year and was slightly higher than in July 2022. 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. 

 

Pricing a home correctly is key for sellers, as the "right" price brings buyers and fewer days on market. In August 2022, the Charlotte region saw a 157% increase year-over-year in price reductions since the market began its shift and cooling.

 

CLOSED & PENDING SALES DOWN YEAR-OVER-YEAR, UP MONTH-OVER-MONTH

Closed sales were down 22% year-over-year in August. Closed sales were up slightly (141 homes) versus July 2022. Pending sales were also down 18% year-over-year, but increased by 129 homes from July 2022.

 

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 29.5% year-over-year by 28 points (10 points more than in July 2022). Year-to-date the housing affordability index dropped 31% by 31 points, also 10 points more than in July 2022.

 

HOUSING MARKET OVERVIEW FOR CHARLOTTE REGION:

AUGUST 2022

Charlotte Region August 2022 Home Sales Snapshot

 

CHARLOTTE REGION HOME INVENTORY INCREASED, BUT STILL IN "SELLER TERRITORY" 

Housing inventory increased for a THIRD consecutive month in August 2022. Inventory is up 25.8% compared to the same time last year and the months supply of housing is up from 1.1 months to 1.5 months year-over-year. 

 

While housing inventory has increased, new listing activity decreased 15.2% in August 2022 compared with August 2021 and is still down 4.7% year-to-date compared with the same time frame one year ago. This was the second consecutive month new listings were down in the Charlotte region.

 

Continued increases in inventory should help cool price appreciation. Nonetheless, the 1.5 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.

 

CHARLOTTE REGION HOMES SOLD QUICKLY IN AUGUST 2022

Averaging 19 days on market, homes continued to sell quickly, despite increasing four days year-over-year and month-over-month. Year-to-date days on market were two days lower versus August 2021.

 

With homes being purchased quickly, increases in inventory coupled with fewer new listings 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.

 

CHARLOTTE REGION LIST TO SALE PRICE RATIOS OPEN A SMALL WINDOW OF OPPORTUNITY FOR BUYERS TO NEGOTIATE ON PRICE

With a list to sale price ratio of 98.5% in August 2022 (down 3% year-over-year and down 1.8% month-over-month), buyers are carefully scrutinizing listing prices and are beginning to see more opportunities to negotiate on price.  Year-to-date, the list to sale price ratio is till 0.2% higher than in August 2021.

 

OUTLOOK FOR HOME SALES IN CHARLOTTE REGION

Moving forward into the fall 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 is 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 August 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)

Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

This is a very interesting market we have right now. The government is doing everything in their power to try and stop the real estate market. Issue they have...everyone needs a place to live. 

Sep 20, 2022 07:27 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

We are seeing the same sort of numbers, rising prices, but lower demand, however homes are going under contract, but many over 54% are having price reductions.

Sep 20, 2022 07:49 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Nina and interesting figure to share with us here in the Rain.  Make it a great day!

 

Sep 20, 2022 08:40 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Nina- Your reports are thorough!  There are buyers and there are still sellers. How do you know what to do?  Work with a knowledgable agent like YOU.

Sep 20, 2022 10:37 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Dorie Dillard Austin TX thanks, Dorie. These past couple of years with markets shifting so quickly I sometimes feel like I'm a novice again at pricing homes.

Sep 20, 2022 10:54 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Grant Schneider yes indeed, Grant... housing starts jumped but filings for permits have gone down... and that's not a good indicator. New construction confidence index just dropped.

Sep 20, 2022 10:55 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Brian England thanks, Brian... it's all about making it easy to understand by the average person, not by those of us who look at numbers like this all the time.

Sep 20, 2022 10:56 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Eric Bouler thanks, Eric, for popping by this beautiful Tuesday. Trust your week is off to a good start.

Sep 20, 2022 10:57 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Jeffrey DiMuria 321.223.6253 Waves Realty hi Jeff... it's totally insane what's going on... the Fed is trying to control inflation and raising rates and the President is signing executive orders at the same time that only increase inflation!

Sep 20, 2022 10:58 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Nick Vandekar, 610-203-4543 hi Nick... in the Charlotte region we had a 150+% increase in price reductions in August... people continue to price homes to a market that no longer exists.

Sep 20, 2022 10:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Will Hamm thanks, Will, for popping by today. Trust your week has gotten off to a good start.

Sep 20, 2022 10:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Kathy Streib thanks, Kathy, for that nice comment. Nick Vandekar, 610-203-4543 did a post the other day about the fact that we need to be more than door openers... and staying on top of market trends is a very important part of that equation.

Sep 20, 2022 11:00 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, another great market update, and it is the same here with buyers wondering what and how the market is going with our economic issues.

Sep 20, 2022 02:40 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

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

Sep 20, 2022 06:24 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox good morning, Joan... no doubt a very tough environment in which to make important, life changing decisions right now.

Sep 21, 2022 04:04 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Myrl Jeffcoat hi Myrl... always appreciate your taking time to pop by my posts and leaving me a message. Wishing you a wonderful Wednesday.

Sep 21, 2022 04:05 AM
Roy Kelley
Retired - Gaithersburg, MD

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

Sep 21, 2022 05:43 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Roy, and my thanks to you for always taking time to stop by each morning.

Sep 21, 2022 05:53 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Nina:

I always enjoy reading your market reports and seeing what's happening in the Charlotte area. Buyers and sellers need information like this, but also guidance from someone like yourself who can help them make sense of the data for their decision making.

Jeff

Sep 21, 2022 12:32 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Jeff Dowler, CRS good morning and thank you, Jeff. I'm always looking in on your market reports, as well, even if I don't leave a comment. The market shifts are so odd now in many respects, we really do need to watch carefully and interpret for our clients.

Sep 22, 2022 04:09 AM