Prices Up, Total Sales and Listings Down

June’s median sales prices jumped to $245,000 from $214,000 in May, with the year-over-year median sales price rising 8.9 percent since June, 2016.

The year-over-year closed sales numbers are down 3.8 percent, and this drop in closed sales is directly linked to the 20.8 percent decrease in the total number of homes for sale in Charlotte, NC. When compared to June, 2016, there was a mere 0.1 percent increase in the number of new listings in June, 2017, and these Charlotte real estate trends continue to show it’s truly a ‘sellers market’.

Fewer Days on the Market

Another indicator that the Charlotte, NC real estate market is a strong one for sellers is the drop in the number of days between when a property is listed for sale, and when it closes. In June, 2016 the average list-to-close was 102. It’s now 92 days, a drop of 9.8 percent over the last 12 months. The days on the market have also decreased from an average of 47 to 40, representing a 14.9 percent year-to-year drop.

The combination of reduced inventory and steady buyer demand means Charlotte, NC property owners are well-positioned to enjoy faster closings and better final sale prices than they did a year ago. This also means buyers have less time to ‘shop around’ when looking to get into the Charlotte, NC real estate market.

Shortage of Inventory a Concern

While demand from buyers continues to drive up prices and drive down the number of days properties are on the market, Charlotte real estate trends analysts are concerned about the lack of inventory of both new and resale homes in the area.

Job creation is on the rise and mortgage rates remain exceptionally low, leading to a steady demand among first-time home buyers who want to break into the local market. Housing starts are trending lower, which has raised some ‘red flags’ about what could be a critical shortage of available homes in the Charlotte, NC area.

Current Mortgage Rate Trends

The current mortgage rates in Charlotte are currently at 4.01 percent for a 30-year fixed rate loan. This is a slight increase from May, 2017, when the rate was 3.86 percent. There is a chance these rates could continue to rise over the upcoming months, which may have a moderating effect on both the rising prices and buyer demand for homes in Charlotte, NC.

Overall, Charlotte real estate trends continue to out-perform the national averages on a number of metrics, including the increase in average sale price, days on the market, and lack of ‘underwater’ and foreclosed homes in the area.

The post Charlotte Real Estate Trends for June 2017 appeared first on Charlotte Real Estate.

Prices and sales up

May’s median sales prices increased to $214,000 from $202,000 in April 2017. Sales also rose to 2,660 units in May from 2,242 in April. This is an 18 percent increase. Per square foot, home pricing is up from $133 to $141 on average. This is higher than the Charlotte Metro area, which averages $120. It is currently a “very hot” market that is great for sellers.

Home prices show no signs of easing. For the first time this spring, the nationwide median home list price rose above $250,000. Here in May, it now stands at $275,000, that’s 10 percent higher than this time last year.

Delinquencies down, foreclosures a concern

There are currently no delinquent mortgages in Charlotte. When a homeowner fails to pay his or her mortgage, it is the first step toward foreclosure. Experts predict that foreclosures will continue to impact home values in the Charlotte area. Currently, 1.5 homes are foreclosed (per 10,000). While it is lower than the national value of 1.6, it is greater than the Charlotte Metro value of 1.3. This time last year, there were more than 2,000 homes in some stage of foreclosure.

Home values peaked in 2007 and are now down by more than 20 percent nationally. Homeowners who owe more than their home is worth are said to be “underwater.” This is true of 0.1 percent of Charlotte homeowners.

Rental market insights

With a decrease in available rentals, it may mean new buyers are entering the market. May numbers show only 2,442 rental units available, a decline in the April number of 2,826 units available. After a slight jump in February from $1,300, median rents in May remained flat in comparison to April and are still at $1,350. While rates are still low, current renters who would be potential first-time buyers may find this is a good time to make a purchase.

All about the rooms

The more rooms within the home, the better the increase in sales. Year over year, one bedrooms in the Charlotte area have increased 2.6 percent, two bedrooms by 7.5 percent and three bedrooms by 9.3 percent. Four bedroom homes saw the biggest increase of 13.2 percent over 2016. In the last three months, prices for four-bedroom houses have increased on average from $310,000 to $360,000.

Current mortgage rate trends

The current mortgage rates in Charlotte are currently at 3.86 percent for a 30-year fixed rate loan. This is a slight decrease from April 1, 2017, when the rate was 4.03. The possibility of increased rates is still there for the second half of 2017. That could dampen the market for buyers.

Yet, as we head into the summer months, Javier Vivas, manager of economic research at realtor.com, notes that this could be a furious start to the season due to a record number of home buyers. According to recent U.S. Census Bureau figures, Charlotte is seeing a large population growth, up 1.9 percent over 2016.

The post Charlotte Real Estate Trends for May 2017 appeared first on Charlotte Real Estate.

Increases in price lower sales

April’s home prices increased to $200,000, a $7,000 increase over March 2017. Sales, however, declined from 2,627 units in March to only 1,889 in April, a 7 percent decrease. This is a substantial decrease, particularly when you consider the general forecast is for a 3.3 percent increase for the year per Zillow estimates. On average, home pricing has increased from $124 to $133 per square foot making this a great time to sell.

Delinquencies continue to decline

Perhaps one of the brightest points in the real estate market is that delinquent mortgages continue to decline. The Charlotte area has remained stable in terms of both foreclosures and new delinquencies and April was no exception, with no new foreclosures or delinquencies recorded.

Rental market insights

There may be new buyers entering the market thanks to a decrease in available rentals. April numbers reflected only 2,258 rental units available, a decline over the March number of 2,542 units available. Rent also decreased in April to $1,300, a modest decrease. Renters who are considering buying may find this is a good opportunity to purchase their first home, since rental costs may be similar to the cost of buying, particularly while rates are low.

Numbers which may be concerning

One number that could trouble some sellers while encouraging buyers is changes in listing price over sales price. April 2017 shows that nearly 14 percent of listings sold for less than their listing price. In addition, nearly 11 percent of current listings reflect at least one price drop in their current pricing.

Current mortgage rate trends

The current mortgage rates in Charlotte are currently at 4.03 percent for a 30-year fixed rate loan. This is a decrease from March 1, 2017, when the rate was 4.15. There is still a possibility of increased rates for the remainder of 2017 which could dampen the market for buyers.

We may be starting to see the first warnings signs of a softening real estate market in the Charlotte area as we have discussed previously. Despite the continued strength in the overall housing market in Charlotte since January of 2017, the slower sales this month could be reflective of what is to come for the remainder of the year and should be monitored for any additional changes.

The post Charlotte Real Estate Trends for April 2017 appeared first on Charlotte Real Estate.

Rising Sales And Prices

For the first three months of 2017, the median sale price for Charlotte-area residences was $210,000, an 11.7 percent increase over the prior year, according to the Charlotte Regional Realtor Association. Sales are strong for all home sizes, and valuations continue to rise. This is reflected in the March 2017 average sales price of $271,351, a 10.4 percent increase over last March.

Zillow’s March 2017 statistics for Charlotte are less robust, but they still reflect a “hot” market. They report a median selling price of $180,400 in March 2017, which represents an 8.0 percent year-over-year increase. They estimate prices will continue to rise, with their current projections estimating an increase in median home values of another 3.2 percent in the next year.

Inventory Shortage Driving Quicker Sales

Charlotte Magazine reported that 42,000 homes sold in the Charlotte-Concord-Gastonia area in 2016. Closed sales so far this year along with pending sales appear to indicate that 2017 is keeping pace. However, inventory shortages caused by a decrease in the growth of new listings could affect the market. For example, the Charlotte Regional Realtor Association’s new listings in February were up a solid 14.5 percent over the prior year. For March, the association reported that the 5,999 new listings were only up 6.2 percent over the 5,648 listings added in March 2016.

Charlotte-vicinity homes are being snapped up faster. In March, the average home was only on the market for 55 days prior to sale, which is a 20.3 percent decrease from the 69 days homes were on the market last year at this time. The overall inventory of homes for sale in and around Charlotte was 9,212 in March, a decline of 20.3 percent from the 11,562 homes on the market last March.

Given the demand in the area’s home-buying market, most shoppers are making bids that are very close to sellers’ asking prices. On average, sellers received 96.9 percent of their original list price in March, a slight increase over the 95.6 percent they received last year.

Impact Of Mortgage Rates

Mortgage rates rose early in the year but have since settled back to last fall’s level. Overall, however, interest rates are higher than they were in 2015 and 2016. Additional interest rate increases by the Federal Reserve this year could reduce the amount of home that buyers can afford to purchase, which could dampen the Charlotte real estate market.

Charlotte real estate has experienced relatively strong growth in the first three months of 2017. However, it appears that growth may be slowing, and the real estate market is facing several strong headwinds as we head into the latter half of the year.

The post Charlotte Real Estate Market Trends March 2017 appeared first on Charlotte Real Estate.

Strong Selling Prices

For the three-month period ending March 15, Trulia says that the median selling price for Charlotte-area homes was $190,000, a 3.3 percent increase year-over-year. The median selling price of four-bedroom homes was particularly strong, rising 13.0 percent, to $308,000. The one-bedroom home segment also demonstrated strength, rising 9.3 percent to $164,000.

February 2017 statistics released by the Charlotte Regional Realtor Association also reveal strength in Charlotte real estate prices. The association calculated a median selling price of $180,525 in February 2016. One year later, the price rose 10.2 percent to $198,000.

Zillow rates the Charlotte market as “hot,” with home values increasing 7.8 percent over the past 12 months. Using its own metrics, Zillow calculates the current median home value at $179,200. It also projects that median home values will rise another 3.4 percent by January 31 of next year.

Inventory Up Short-Term

February data compiled by the Charlotte Regional Realtor Association highlights growth in key areas. For example, February new listings are up a solid 14.5 percent year-over-year and pending sales are up 18.4 percent. Any increase in available inventory will be welcomed by prospective buyers, many of whom would welcome a wider selection and less competition for desirable properties.

Still, in many instances, Charlotte homes for sale are snapped up in a matter of weeks. In fact, the number of days the average home is on the market has dropped from 71 days to 57 days, a significant year-over year reduction of 19.7 percent. Overall inventory of Charlotte homes for sale is down by more than 2,300 listings since last February, a drop of about 21 percent. There is now only a 2.3 month supply of inventory, down from 3.2 months one year earlier.

Given the imbalance of supply and demand in many parts of the market, it is not surprising that many sellers are getting very close to their asking prices. The percent of original list price received now stands at 96.3 percent, up another 1.3 percent over last Februaryâ€s already-high 95 percent figure. Going forward, double-digit increases in the number of listings in early 2017 offer buyers hope for the expanded selection they desire. More Charlotte homes for sale could reduce the competition among buyers that has fostered some of the upward pressure on median selling prices.

Impact of Mortgage Rates

Gradual increases in mortgage rates may also slow increases in selling prices. The long run of 30-year benchmark rates remaining in the mid-to-high threes increased the buying power of many of those wishing to purchase. The Fedâ€s recent rate increase is driving mortgage rates higher. Recent rate increases into the low fours reduce impact on the market by reducing the maximum home value buyers qualify for. With the prospect of additional rate increases by the Feds in 2017, buyers that can do so should act sooner rather than later.

The post Charlotte Real Estate Trends for February 2017 appeared first on Charlotte Real Estate.

Strong demand often exerts upward pressure on selling prices. For the three-month period ending February 1, Trulia calculates a median sales price of $193,500 for Charlotte real estate, a solid increase of 8.7 percent compared to the same period one year earlier.

Prices Rise for Both Smaller and Larger Homes

It is interesting to note that the prices of mid-sized (two and three-bedroom) homes rose marginally, while the median sales prices of one-bedroom and four-bedroom residences saw strong double-digit growth. The price of the larger four-bedroom homes rose to $300,000, a sizable 14.1 percent year-over-year increase.

At the same time, the median selling prices of one-bedroom Charlotte homes for sale soared 25.6 percent to $157,000, a full $17,000 higher than the median price of two-bedroom homes. The strong showing by one-bedroom residences may be attributed in a part to several factors. First, this category was hard-hit during the rise in foreclosures following the recession of 2008. Second, it is possible to attribute some of the price increases to new condominium construction. Third, another year of very low interest rates coupled with high demand created ideal conditions for sellers.

“Hot Market” Says Zillow

Meanwhile, Zillow continues to rate Charlotte real estate as “hot,” and appropriately so. Its “Home Value Index” stood at $178,200 on December 31, 2016, 8.0 percent higher than one year earlier. Zillow projects another 4.2 percent increase in home values in 2017. Zillow says the market health of Charlotte real estate continues to improve, to a 5.7 rating on a 10-point scale. Only about one in 1,000 homes have negative equity, consistent with nationwide statistics.

Mortgage Rates Trending Upward

After rising from about 4.2 percent late in 2016 to above 4.3 percent in January, the benchmark 30-year mortgage rate reported by bankrate.com fell to near 4.25 percent at the end of January 2017. Prospective buyers may have been lulled into a sense of complacency from 2015-2016, as rates remained steady in the high threes most of the time. This fairly quick jump in rates may bring even more buyers into the market, especially if they conclude that those historically low rates are gone for good. Additional buyers could squeeze the ongoing inventory shortage even more, increasing the occasional bidding wars that erupt over very desirable properties.

Given the confluence of increasing home prices and rising mortgage rates, prospective buyers may want to laser-focus on Charlotte homes for sale as soon as they hit the market. Strong competition among buyers is often evident. At the same time, prospective sellers may want to enter the market now in case higher mortgage rates eventually reduce demand going forward.

The post Charlotte Real Estate Trends for January 2017 appeared first on Charlotte Real Estate.

Zillowâ€s

The post Charlotte Real Estate Trends November 2016 appeared first on Charlotte Real Estate.

Double-digit Increases

Not surprisingly, this inventory shortage exerts an upward pressure on prices. Thanks to a recent surge in prices, the median selling price for Charlotte area homes is now $209,690, an increase of 12.7 percent compared to last year at this time. As eager buyers compete for the best listings, the prices realized continue to rise. Sellers are receiving, on average, 96.2 percent of the original list price, an increase of 1.6 percent over last Octoberâ€s already high levels.

Trulia, which calculates median selling prices based on the number of bedrooms, offers some interesting data. Year-over-year increases are reported in one, three and four-bedroom residences, while two-bedroom residences actually decreased in value for the three-month period extending from August 24 to November 23. Apparently, Zillow analysts are also persuaded of the strength in the Charlotte real estate market. After projecting a 2-3 percent price increase in their one-year forecast, the current projection now stands at a higher 4.3 percent figure.

Evidence of Better Inventory

There is some good news for buyers in search of Charlotte homes for sale. There are signs that the shortage of listings that has spanned the past couple of seasons is finally easing. In October, 4,150 new homes new listings hit the market, an increase of 2.7 percent over October 2015. The number of new listings year-to-date has shown similar improvement – 49,392 this year compared 48,079 last year. As homes sell quickly, the number of pending sales tend to rise. Such sales for this October stood at 3,984, a whopping 26.4 percent year-over-year increase.

Dramatic 4-year Run

Improving economic conditions and solid job growth make Charlotte one of the stronger residential real estate markets in the country. The recovery in median selling prices over the past four years has been impressive. In October 2012, it stood at approximately $160,000. With the median selling price now closing in on $210,000 and showing little sign of slowing, there’s been a $50,000 increase in the median selling price in just 48 months, an impressive average increase of over $1,000 per month.

October Interest Rates Steady

At the end of October, mortgage interest rates remained steady. For the week ending October 26, 2016, Bankrate.comâ€s thirty-year benchmark fixed rate stood at 3.64 percent, nearly identical to the figure one month earlier. However, there has been a post-election surge in mortgage interest rates, and this will be discussed in our November report. Whether a rate increase is temporary or lasting remains to be seen. Prospective buyers may want to look at Charlotte homes for sale now to take advantage of still-low mortgage interest rates.

The post Charlotte Real Estate Trends for October 2016 appeared first on Charlotte Real Estate.

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.

The post Charlotte Real Estate Trends for September 2016 appeared first on Charlotte Real Estate.

Price Gains for Two to Four-bedroom Homes

Recent sales data brings positive news for both sellers and prospective buyers. Using statistics compiled through August 31, Trulia reports that median selling prices for Charlotte-area single-family residences are up 3.0 percent compared to one year ago.

The most dramatic gains are found among two-bedroom homes, while selling prices for one-bedroom residences have actually declined. In the past year, the median price of a two-bedroom home has increased from $152,750 to $173,250. Thatâ€s an increase of 13.4 percent. At the same time, three and four-bedroom prices have increased more than six percent since last year at this time.

The story is quite different when it comes to one-bedroom residences. The median selling price of such homes has decreased 21.2 percent, from $165,000 to $130,000. As a result, first-time home buyers looking at such properties may find some value-priced homes for sale.

Further Increases Predicted

Meanwhile, Zillow remains bullish on residential real estate in the greater Charlotte area. Using a slightly different metric, Zillow says selling prices have increased 7.5 percent year-over-year. Rating the market as “very hot,” the online real estate concern predicts another 4.2 percent increase in prices during the next 12 months.

Median selling prices now exceed $115 sq-ft. As recently as March 2016, the price per sq-ft hovered around $100. Both figures demonstrate dramatic improvement since 2013, when median selling prices dipped as low as $85 sq-ft.

Mortgage Rates Still Very Attractive

The benchmark 30-year, fixed interest mortgage rate remained remarkably steady throughout the month of August. At the end of the month, the rate stood at 3.57 percent, according to bankrate.com. Furthermore, more than 85 percent of Bankrateâ€s panel of mortgage professionals predict that rates will remain steady in September.

Low mortgage interest rates sometimes benefit sellers, especially those marketing particularly desirable houses, because buyers sometimes devote dollars saved on interest into higher bids. At the same time, rates hovering near historic lows make higher-priced homes more affordable for excited buyers.

The post Charlotte Real Estate Trends for August 2016 appeared first on Charlotte Real Estate.