Charlotte Region Housing Market December 2022. What To Know Now.

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

What you need to know...

What it means for you... 

December 2022 home sales were down year-over-year for a 12th consecutive month in the 16-County Charlotte Region. Pending sales were also down year-over-year for a 12th consecutive month. Sales are happening, but not at the volume or pace of the prior year or even earlier in 2022.

Despite, lower closed and pending sales, average list and sale prices increased in December 2022, year-over-year. Home prices are still increasing, but at a slower pace.  Median sale price also increased year-over-year. 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, both average and median sale prices decreased.

Higher home prices coupled with higher interest rates have impacted affordability and continued to cool buyer demand in the second half of the year. The market in 2021 was clearly an anomaly and we can now see that year-over-year sales declines over all of 2022 appear significant. 

Home buyers are frustrated by higher rates, rising home prices, and economic uncertainty. Consequently, home sales and mortgage applications have fallen since last year as buying "power" declines.  Pending sales are a good indicator of 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.

HOUSING MARKET OVERVIEW FOR CHARLOTTE REGION:

DECEMBER 2022 VS DECEMBER 2021

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

Housing inventory increased for a seventh consecutive month in December 2022. Inventory is up 54% compared to the same time last year. The months supply of housing is up from 0.8 months to 1.6 months year-over-year. Month-over-month, the months supply of inventory was 0.2 months lower. Month-over-month, inventory decreased by 847 homes. Continued increases in inventory with weaker buyer demand should help cool price appreciation.

Nonetheless, the 1.6 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 would need six months of supply. And it's worth pointing out that there are parts of the Charlotte Region where the months supply is lower than 1.6 months. Fort Mill, SC, for example, had 1.2 months of inventory in December 2022.

While housing inventory has increased, new listing activity decreased 31.3% in December 2022 compared with December 2021 and is down 10% year-to-date compared with the same time frame one year ago. Month-over-month, Charlotte region saw 932 fewer new listings.

CHARLOTTE REGION HOMES' DAYS ON MARKET INCREASED IN DECEMBER

Averaging 41 days on market, the days on market increased 21 days year-over-year and by seven days month-over-month. Year-to-date days on market were three days higher compared with December 2021.

Pricing a home correctly is increasingly critical for sellers, as the "right" price brings buyers and fewer days on market. The housing market is not what it was last year. Our market is now more like the pre-pandemic market. Home sellers need to adjust their expectations for price and the time it might take to sell their homes.

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

With a list to sale price ratio of 94.7% in December 2022 (down 5.5% year-over-year and down 1% month-over-month), buyers are carefully scrutinizing listing prices and negotiating on price.  Year-to-date, the list to sale price ratio declined 1.1% to 99.7% in December 2022. Buyers may have more bargaining power now than at any point during the pandemic. By the same token, it's more important than ever that home sellers price their homes realistically.

TODAY'S HOME BUYERS HAVE MORE NEGOTIATING POWER; VIDEO

WINTER 2023 OUTLOOK FOR HOME SALES IN CHARLOTTE REGION

Moving forward into the  winter selling season, slowing buyer demand because of economic concerns, increasing interest rates and home price increases reducing affordability are what will hold the market back in terms of sales momentum. 

We will 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?

We can help. 

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

There’s absolutely NO OBLIGATION. 

A consultation with Carolinas Realty Partners is FREE.     

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? 

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

5 REASONS TO SELL YOUR HOUSE THIS WINTER: VIDEO

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

This Charlotte Region housing market update for December 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