Now that summer is upon us, the Charlotte, NC real estate market is in full swing. Despite the nationwide slowdown in property sales, demand among local home buyers remains strong and prices continue to rise. A quick analysis of Charlotte real estate trends shows a lack of inventory has led a significant reduction in the number of closed sales when compared to the same time period last year. This trend means more multiple offers and stiffer competition among buyers who want to lock in the current low interest rates.
Prices Up, Total Sales and Listings Down
June’s median sales prices jumped to $245,000 from $214,000 in May, with the year-over-year median sales price rising 8.9 percent since June, 2016.
The year-over-year closed sales numbers are down 3.8 percent, and this drop in closed sales is directly linked to the 20.8 percent decrease in the total number of homes for sale in Charlotte, NC. When compared to June, 2016, there was a mere 0.1 percent increase in the number of new listings in June, 2017, and these Charlotte real estate trends continue to show it’s truly a ‘sellers market’.
Fewer Days on the Market
Another indicator that the Charlotte, NC real estate market is a strong one for sellers is the drop in the number of days between when a property is listed for sale, and when it closes. In June, 2016 the average list-to-close was 102. It’s now 92 days, a drop of 9.8 percent over the last 12 months. The days on the market have also decreased from an average of 47 to 40, representing a 14.9 percent year-to-year drop.
The combination of reduced inventory and steady buyer demand means Charlotte, NC property owners are well-positioned to enjoy faster closings and better final sale prices than they did a year ago. This also means buyers have less time to ‘shop around’ when looking to get into the Charlotte, NC real estate market.
Shortage of Inventory a Concern
While demand from buyers continues to drive up prices and drive down the number of days properties are on the market, Charlotte real estate trends analysts are concerned about the lack of inventory of both new and resale homes in the area.
Job creation is on the rise and mortgage rates remain exceptionally low, leading to a steady demand among first-time home buyers who want to break into the local market. Housing starts are trending lower, which has raised some ‘red flags’ about what could be a critical shortage of available homes in the Charlotte, NC area.
Current Mortgage Rate Trends
The current mortgage rates in Charlotte are currently at 4.01 percent for a 30-year fixed rate loan. This is a slight increase from May, 2017, when the rate was 3.86 percent. There is a chance these rates could continue to rise over the upcoming months, which may have a moderating effect on both the rising prices and buyer demand for homes in Charlotte, NC.
Overall, Charlotte real estate trends continue to out-perform the national averages on a number of metrics, including the increase in average sale price, days on the market, and lack of ‘underwater’ and foreclosed homes in the area.