As summer surrenders to fall, and the first signs of bright autumnal foliage appear in the mountains to the west. Locally, “rosy” is the color of important Charlotte real estate metrics. For example, the median selling price of a single-family home stood at $189,750 in September 2015. One year later, the median value is $207,000, which represents a healthy 9.1 percent increase.
Number of Bedrooms a Factor
Using slightly different source data, Trulia calculates a median home selling price of $201,750 for the three-month period from July 6 to October 5. This represents a year-over-year increase of 5.1 percent. Trulia breaks sales figures down by the number of bedrooms in each residence. The results show strength in selling prices of single-bedroom and larger 3-4 bedroom homes. However, according to Trulia, selling prices of two-bedroom properties are relatively flat, up just 0.2 percent since the same three-month period one month ago.
Good News for Sellers
The average percentage of sellers’ asking prices received continues to edge ever higher. It now stands at 96.1 percent, up another 1.1 percent over the extremely high levels of a year ago. Buyers continue to scramble when attractive listings appear on the market. The inventory of homes is down a significant 22.1 percent, year-over-year. Such numbers are indicative of demand exceeding supply, and sellers are benefiting from higher selling prices and relatively quick sales in many cases. Charlotte homes for sale are on the market for only 47 days, on average, before they sell, down from 61 days one year ago.
Zillow pegs the median home value at $173,100, up 8.1 percent over the past year. The online real estate concern remains bullish about prospects for continued increases in value, with a forecast increase of 4.2 percent for the year to come. Not surprisingly, Zillow rates the Charlotte residential real estate market as “very hot.”
Slight Increase in New Listings
In this high-demand residential real estate market, it is helpful that the number of new listings continues to edge upward. The 4,494 new listings represent a 2.6 percent increase compared to September 2015. Still, there are 3,000 fewer Charlotte homes for sale now than one year ago – 14,174 then vs. 11,045 now.
Favorable Mortgage Interest Trends
Very low mortgage interest rates continue to drive the market for Charlotte real estate. As lenders very gradually ease credit standards, the benchmark rate is well below 3.5 percent. In fact, on September 30, Bankrate says the average 30-year fixed-rate mortgage stood at 3.35 percent, down 28 basis points in just one week. This translates to approximately $441 per month in principal and interest for every $100,000 borrowed.
Given the continued inventory shortfall, buyers should remain keenly aware of attractive properties as soon as they hit the market, and they should be prepared to pay very close to what sellers are asking. Nonetheless, this is still a very favorable time for buyers to take advantage of dropping mortgage interest rates. With average Charlotte rents as much as $200 higher than they were in early 2016, the scales tip in favor of buying for an increasing number of people.