As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are probable for the rest of the year but not guaranteed.
New Listings were up in the Charlotte region 2.6 percent to 4,494. Pending Sales increased 18.3 percent to 3,899. Inventory shrank 22.1 percent to 11,045 units. Prices moved higher as Median Sales Price was up 9.1 percent to $207,000. Months Supply of Homes for Sale was down 28.6 percent to 3.0 months, indicating that demand increased relative to supply.
In general, today’s demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.
All data from CarolinaMLS. Report provided by the Charlotte Regional REALTOR® Association