As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
New Listings were up in the Charlotte region 2.7 percent to 4,150. Pending Sales increased 26.4 percent to 3,984. Inventory shrank 23.1 percent to 10,570 units. Prices moved higher as Median Sales Price was up 12.7 percent to $209,690. Months Supply of Homes for Sale was down 30.0 percent to 2.8 months, indicating that demand increased relative to supply.
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part
All data from CarolinaMLS. Report provided by the Charlotte Regional REALTOR® Association