What little inventory there is on the market in the Charlotte region is not hanging around for long. Sellers can pretty much name their price, and buyers will move quickly to snatch up homes.
With competition hot and selection limited, sellers are upping asking prices. Average list prices in the Charlotte MLS area jumped 2 percent to $308,305 from July 2017, while days on the market dropped more than 14 percent to 36 days from 42 days for the same period.
Percent of list price received remains unchanged from the year-ago period at 97.2 percent.
Housing inventory in July took a big hit from the year-ago period with only 9,790 homes for sale, a drop of 16.3 percent from 11,701 last year, according to the Charlotte Regional Realtor Association. Supply of market inventory dropped to 2.4 months from 2.9 months a year ago.
The limited market inventory brought sales numbers down, as closed sales dropped 2.8 percent to 4,447. July’s sales fell 5.9 percent from June 2018.
“Without a doubt, limited inventory continues to pressure prices across the region, while also effectively slowing sales during what’s typically our prime selling season. Demand and pending contract activity remain strong, which means buyers must move quickly to purchase the home they want, especially since homes are averaging 36 days on market this summer,” CMLS President Jason Gentry said.
The average sales price increased 5.1 percent to $290,486 from $276,434, and median sales prices increased 2.1 percent to $240,000. Compared to June 2018, however, average and median sales prices dropped 3.9 percent and 3.2 percent, respectively.
Pending sales were up 12.5 percent to 4,947 from the year-ago period but dropped 2.6 percent compared to June 2018.
This vicious cycle of low inventory and a strong sellers market is a double-edged sword for the Charlotte real estate market. Sellers, who might have once eagerly listed their home for sale, may be reluctant to then be on the buying side with so few homes from which to choose.
Here are more specific market stats from around the region:
Mecklenburg County: New listings fell 6.4% to 2,217 for July; sales dropped 4.6% to 1,843 homes sold in July; and the average sales price jumped 6.7% to $317,005. Months supply of inventory is down to 1.9 months, a drop of 13.6% from 2.2 months a year ago.
Union County: New listings dropped 4.2% to 499; closed sales were up 2.6% to 428; and the average sales price jumped 4.4% to $368,361. Months supply of inventory dropped 9.7% to 2.8 months from 3.1 months a year ago.
City of Charlotte: New listings dropped 6.4% to 1,720 homes listed in July; closed sales fell 4% to 1,430; and average sales prices were up 8.3% to $308,713. Inventory supply fell 10% to 1.8 months supply of homes on the market.