Charlotte North Carolina Market Update for:
Single Family Homes in Mecklenburg County North Carolina Area 1 including:
Charlotte, Cornelius, Davidson, and Huntersville Neighborhoods East of I-77, North of N. Tryon Street, West of Cabarrus County, and South of Iredell County including the neighborhoods of Highland Creek, Vermillion, Heritage Green, River Run, Skybrook, Northstone, Cambridge Grove, and others.
Data gathered for July 1, 2008 - July 31, 2008
In July, 417 new single family detached homes were added to the available for-sale inventory in North Mecklenburg Area 1. This is a 11% decrease in new single family listings when compared to the same period a year ago. Not July 2005 saw fewer new listings with 400.
Only 203 single family detached listings were placed under contract in North Mecklenburg Area 1 during July. This was a 31% decrease in the number of homes placed under contract in July 2007 and 13% fewer than in June 2008.
In July, only 168 homes sold through the MLS in North Mecklenburg area 1. This was a 40% decrease from the number of sales the year prior (282) and almost half the number sales from the high in 2008.
Seller received 96.46% of the asking price in July. This was down from 97.75% from the year prior and 97.41% the month prior.
The average days on market increased to 97 in July, up 70% from the year prior when the average days on market were just 57.
The average sold price for a home in North Mecklenburg area 1 decreased to $205,061, down from 10% from the year prior but up from the month prior where the average sold price was $203,465.
If you were hoping for large declines, sorry to disappoint you.
I've been expecting the numbers for July for quite some time because July 2007 is when everything started to fall apart. Mortgage banks started failing, investors stopped funding, and essentially it was the earthquake. Since then, we've had tremmors but overall, things have improved. A year later and the markets have opened back to traditional buyers and with the FHA's guarantee of higher dollar mortgages has prevented a total disaster. Still, this wasnt your typical July.
Last month, we saw a fewer number of homes on the market than in prior years and far fewer contracts and sales. The result is that sellers who are highly motivated were taking less than ever before to move on. Some of the decline in the Percentage of List Price Received number maybe as a result of the pre-foreclosures, short-sales, HUD's and REO's which are prevalent in some parts of that area.
The price range with the most activity in North Mecklenburg area 1 remains the homes below $200,000. Of the homes which closed last month, 121 were priced below $200,000 and only 4 were above $500,000. Of the active listings on the market, there are 137 homes for sale above $500,000. Last June (BC - Before Collapse), 20 homes sold above $500,000.
Overall, the numbers are better than expected. The number 1 issue in Charlotte remains buyer's confidence in the housing market above all else. As a result, sellers should settle in for a considerably longer average days on market, show their home in the best possible light, and hope their home is the one buyers are looking for. The second issue is the lack of affordable financing for self employed buyers. Finally, buyers with homes to sell themselves are out of the market until their home sells.
Jonathan Osman
Charlotte NC Homes, Charlotte Real Estate
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