Charlotte Region Housing Market: October 2022. What To Know Now

By
Real Estate Agent with Coldwell Banker Realty 179530

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

What you need to know...

What it means for you... 

 

October 2022 home sales were down year-over-year for a 10th consecutive month. Pending sales were also down year-over-year for a 10th consecutive month. Higher home prices coupled with higher interest rates have impacted affordability and continue to cool 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.  As pending sales are a good indicator or future sales and buyer demand, we should expect fewer closed sales in the months to come. Furthermore, 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.

 

HOME PRICES CONTINUED TO INCREASE YEAR-OVER-YEAR

Despite, lower closed and pending sales, average list and sale prices increased in October 2022, year-over-year.  Median sale price also increased year-over-year, but was essentially flat month-over-month, decreasing by just $550. The median sale price is the best measure of price over time, as it factors out extreme highs and lows in home prices. Pricing a home correctly is key for sellers, as the "right" price brings buyers and fewer days on market. 

 

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

Closed sales were down 29.9% year-over-year in October. Closed sales were down by 678 homes versus September 2022. Pending sales were also down  33.9% year-over-year and month-over-month with 476 fewer pending sales in October versus September 2022. Pricing a home correctly is key for sellers, as the "right" price brings buyers and fewer days on market. 

 

Buyer foot traffic (also an indicator or buyer demand) dropped from 7.1 showings per listing in September 2022 to 6.5 showings in October 2022.

 

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

Interest rates have doubled since 2021The real cost to buy a house has spiked over 55% since the start of the year, as the Federal Reserve raised rates four times between June and November 2022. Mortgage rates topped 6% for the first time since 2008. By October 31st, we were seeing the 30-year fixed rate at around 7.1%.  Meantime, the jumbo rate hit a 12-year peak of 6.27% in mid-October.

 

The Charlotte region housing affordability index continues to drop and impact sales volume. Housing affordability dropped 33% year-over-year by 31 points. Year-to-date the housing affordability index dropped 35.7% by 35 points.

 

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

 

HOUSING MARKET OVERVIEW FOR CHARLOTTE REGION:

OCTOBER 2022 VS OCTOBER 2021

Charlotte, NC Region Housing Market Update: October 2022

 

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

Housing inventory increased for a fifth consecutive month in October 2022. Inventory is up 42.1% compared to the same time last year. The months supply of housing is up from 1.1 months to 1.8 months year-over-year. Month-over-month, the months supply of inventory was up by 0.2 months. Month-over-month, inventory increased by 407 homes.

 

Continued increases in inventory should help cool price appreciation. Nonetheless, the 1.8 months supply of homes keeps Charlotte region in "seller territory." We need four months of inventory to consider it a "balanced" market.  A buyer's market, which would need six months of supply.

 

While housing inventory has increased, new listing activity decreased 23% in October 2022 compared with October 2021 and is down 7.4% year-to-date compared with the same time frame one year ago. Month-over-month, Charlotte region saw 452 fewer new listings.

 

The fact that we've seen fewer new listings coming on the market for five months now, indicates Charlotte region will continue to experience inventory challenges, which impact home price appreciation.

 

CHARLOTTE REGION HOMES DAYS ON MARKET INCREASED IN OCTOBER

Averaging 27 days on market, homes continued to sell relatively quickly, but increasing by 10 days year-over-year and by five days month-over-month. Year-to-date days on market were flat compared with October 2021.

 

With homes being purchased quickly and new listings down, 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.

 

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

With a list to sale price ratio of 96.6% in October 2022 (down 3.9% year-over-year and down 0.6% 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 declined 0.5% to 100.4% in October 2022.

 

TODAY'S HOME BUYERS HAVE MORE NEGOTIATING POWER; VIDEO

 

OUTLOOK FOR HOME SALES IN CHARLOTTE REGION

Moving forward into the late fall/early winter 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 Don't expect a housing crash in 2022 or 2023than later because of rising mortgage rates and rising rents which continue to outpace monthly mortgage payments.

 

Talk about a market crash continues in many media sources. 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.

 

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

     

 

LOOKING FOR YOUR DREAM HOME IN THE CHARLOTTE REGION?  

 

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

 

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?

 

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

 

PRICING A HOME RIGHT IS CRITICAL IN TODAY'S MARKET: VIDEO

 

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

 

This Charlotte Region housing market update for October 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 22+ 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
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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 (22)

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

Wayne Martin good morning, Wayne... Charlotte remains a relatively strong market despite shifts... now we wait and see how long that continues.

Nov 23, 2022 04:54 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Grant Schneider thanks, Grant... and your take on the Charlotte housing market it totally spot-on!

Nov 23, 2022 04:54 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

I wish we had the ability to track buyer foot traffic. That would be such an interesting statistic. I'm betting it's lower than where you are, but I could be wrong.

Thank you for the interesting October overview!

Nov 23, 2022 04:57 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

You cover everything that people need to know and why they need to know it about the market.  Your infographics always tell the story well.

Nov 23, 2022 05:19 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Kat Palmiotti hi Kat... I've followed that foot traffic statistic a very long time and use it when clients think they are not getting enough traffic. Since we make 99% of our appointments through Showing Time, it's an easy number to monitor. I'm guessing your area doesn't provide a Showing Time service.

Nov 23, 2022 05:23 AM
Kat Palmiotti

Well, we do have one but almost no one uses it, Nina Hollander, Broker !

Nov 23, 2022 07:25 AM
Nina Hollander, Broker

Kat Palmiotti oh my goodness, Kat. Showing Time is such a time saver whether I'm the listing agent or the buyer's agent. Of course, if no one uses it, your statistics would not be very accurate. I've been using a showing service like this for close to two decades.

Nov 23, 2022 07:28 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Brian England thanks, Brian... the infographic is an easy way to get a "snapshot" of the market. But many people don't know how to interpret the numbers, which is what I try to do.

Nov 23, 2022 05:24 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Happy Wednesday. You have a very large blog today. A Great Blog you have done.

Nov 23, 2022 05:41 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, interesting to see flat home values overall, and now I am wondering what Denver did last month.

Nov 23, 2022 06:16 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox hi Joan... that's just month-over-month, which I think isn't bad for a cooling market. Year over year, home prices are still up considerably.

Nov 23, 2022 07:24 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Eric Bouler thank you, Eric, for stopping by and the nice comment. Wishing you a terrific Thanksgiving Eve Day!

Nov 23, 2022 07:24 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Nina,

According to your report Charlotte remains a relatively strong market despite the shifts... It will be interesting to see how long that continues.

Nov 23, 2022 08:20 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

I agree Nina that buyers are starting to feel the pinch of the higher interest rates and the economic uncertainty, and can understand why home sales have fallen since the previous year. However the Charlotte housing region is still looking good!

 

Nov 23, 2022 08:40 AM
Roy Kelley
Retired - Gaithersburg, MD

Families on the move will love your excellent local real estate reports.

Thanksgiving 2021: 100 Happy Thanksgiving Messages, Wishes For All |Golden  News

Nov 23, 2022 10:02 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Dorie Dillard Austin TX hi Dorie... each month I hold my breath waiting to see what's happened. Staying tuned for November numbers in a few weeks.

Nov 23, 2022 10:29 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 hi Sheila... we are fortunate in Charlotte region that so many people are moving here and overall demand for housing is still there. 

Nov 23, 2022 10:30 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Thank you, Roy... wishing you and Dolores the loveliest of Thanksgiving Days.

Nov 23, 2022 10:30 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina this is great information to share about the Charlotte Regional Housing Market.

Nov 23, 2022 01:52 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George Souto hi George... as you might imagine, everyone wants to know what's happening in the housing market these days. Happy Thanksgiving Eve to you!

Nov 23, 2022 02:22 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Nina- your market reports are always thorough and you do an excellent job of explaining what the stats mean. 

Nov 23, 2022 05:59 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Kathy Streib good morning, Kathy. Happy Thanksgiving! Thanks for the nice comment. I think a big mistake many agents make is to assume that the general public understands what various numbers and trends mean.

Nov 24, 2022 04:06 AM