As people start looking forward to summer, the real estate market in Charlotte shows signs it is cooling off faster than it has been in months. While there may still be a decline in the market thanks to low inventories, the market for April was better than expected.
Increases in price lower sales
April’s home prices increased to $200,000, a $7,000 increase over March 2017. Sales, however, declined from 2,627 units in March to only 1,889 in April, a 7 percent decrease. This is a substantial decrease, particularly when you consider the general forecast is for a 3.3 percent increase for the year per Zillow estimates. On average, home pricing has increased from $124 to $133 per square foot making this a great time to sell.
Delinquencies continue to decline
Perhaps one of the brightest points in the real estate market is that delinquent mortgages continue to decline. The Charlotte area has remained stable in terms of both foreclosures and new delinquencies and April was no exception, with no new foreclosures or delinquencies recorded.
Rental market insights
There may be new buyers entering the market thanks to a decrease in available rentals. April numbers reflected only 2,258 rental units available, a decline over the March number of 2,542 units available. Rent also decreased in April to $1,300, a modest decrease. Renters who are considering buying may find this is a good opportunity to purchase their first home, since rental costs may be similar to the cost of buying, particularly while rates are low.
Numbers which may be concerning
One number that could trouble some sellers while encouraging buyers is changes in listing price over sales price. April 2017 shows that nearly 14 percent of listings sold for less than their listing price. In addition, nearly 11 percent of current listings reflect at least one price drop in their current pricing.
Current mortgage rate trends
The current mortgage rates in Charlotte are currently at 4.03 percent for a 30-year fixed rate loan. This is a decrease from March 1, 2017, when the rate was 4.15. There is still a possibility of increased rates for the remainder of 2017 which could dampen the market for buyers.
We may be starting to see the first warnings signs of a softening real estate market in the Charlotte area as we have discussed previously. Despite the continued strength in the overall housing market in Charlotte since January of 2017, the slower sales this month could be reflective of what is to come for the remainder of the year and should be monitored for any additional changes.