The June market for Charlotte area residential real estate heated up just like the early summer temperatures. Sellers could kick back and enjoy their iced tea and lemonade as their properties often sold quickly and at desirable prices.
June was a solid month in Charlotte residential real estate sales
The compares quite favorably to the more modest increases tallied over recent months. For perspective, it’s worth recalling that as recently as Q1 2012, the median sales price in the greater Charlotte area was only a little more than $150,000. By June of this year, that figure had risen to $225,000, a 50-percent increase in a little more than five years.
Statistics compiled by the Charlotte Regional Realtor Association provide continuing evidence of demand exceeding supply. Over the past year, sellers often received a very high percentage of what they priced their properties at. In June, selling prices rose to almost unprecedented heights, with sellers receiving an average of 96.8 percent of their original asking prices. This figure represents an increase of 1.1 percent over the already-high figure of 95.7 percent recorded one year earlier.
In June 2015, an average listing was on the market for a modest 61 days before being sold. This June, properties were on the market an average of only 47 days, a decrease of 23 percent.
Three Months Worth of Homes
Evidence of homes being snapped up by eager buyers is also found in taking a quick look at inventory data. This June, there were 11,146 homes for sale, 23.3 percent less than one year ago. This means there is only a 3.0-month supply of homes for sale, down a whopping 31.8 percent year-over-year.
At the same time, it is encouraging to see a 7.7 percent increase in listings compared to June 2015. However, demand has been more than sufficient to absorb additional inventory. Pending sales soared 19.3 percent in June, to 4,763. That’s 771 more pending sales than the number reported one year ago.
Interest Rates Trend Lower
Traditionally, an inventory shortfall drives prices higher. At the same time, buyers’ bids are often buoyed by low mortgage interest rates, particularly when desirable properties are in play. According to bankrate.com, the benchmark 30-year fixed-rate mortgage fell another 9 basis points during the week preceding June 30, to 3.52 percent. This is an impressively low rate considering the fact that the benchmark rate remained north of 3.75 percent for much of April and May. Not surprisingly, mortgage applications soared 14.2 percent the last week of June.
June’s impressive gains may encourage more prospective sellers to take advantage of rising prices. Given the ongoing shortage of residential inventory, the market would more than welcome their entry into the market.