The story has remained consistent as concerns residential real estate. In year-over-year comparisons, the number of homes for sale has been fewer in most communities. Meanwhile, homes are selling in fewer days and for higher prices. This hasn’t always been the case, but it has occurred with enough regularity and for enough time to make it a trend for the entirety of 2016.

New Listings were up in the Charlotte region 9.8 percent to 3,367. Pending Sales
increased 27.0 percent to 3,382. Inventory shrank 24.9 percent to 9,770 units.
Prices moved higher as Median Sales Price was up 7.7 percent to $210,000. Months Supply of Homes for Sale was down 31.6 percent to 2.6 months, indicating that demand increased relative to supply.

Financial markets were volatile in the days surrounding the presidential election, but they self-corrected and reached new heights soon after. Long-term indicators of what it will be like to have a real estate developer for a president remain fuzzy, but the outcome is not likely to be dull. Prior to the election, trend shift was hard to come by, and unemployment rates have not budged since August 2015. Post election, mortgage rates are up and so are opinions that a trend shift is likely in the near future.

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

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.

Closed sales began to cool for much of the country last month, and conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership.

New Listings were up in the Charlotte region 7.3 percent to 5,027. Pending Sales increased 23.2 percent to 4,525. Inventory shrank 22.7 percent to 11,150 units.

Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.

New Listings were up in the Charlotte region 7.7 percent to 5,579. Pending Sales increased 19.3 percent to 4,763. Inventory shrank 23.3 percent to 11,145 units. Prices moved higher as Median Sales Price was up 8.1 percent to $225,000. Months Supply of Homes for Sale was down 31.8 percent to 3.0 months, indicating that demand increased relative to supply.

New Listings were up in the Charlotte region 4.5 percent to 5,637. Pending Sales increased 21.0 percent to 4,989. Inventory shrank 25.4 percent to 10,880 units. Prices moved higher as Median Sales Price was up 5.0 percent to $209,900. Months Supply of Homes for Sale was down 31.8 percent to 3.0 months, indicating that demand increased relative to supply.

The housing market is being predictable, and thatâ€s a good thing. At the beginning of the year, it was anticipated that the prevailing trends of the past year would continue into and through 2016, and that has largely been the case. The number of homes for sale has generally remained lower compared to a year ago, and prices have been steadily rising in desirable communities where homes show well.

New Listings in the Charlotte region increased 2.6 percent to 5,721. Pending Sales were up 21.1 percent to 5,160. Inventory levels fell 26.6 percent to 10,513 units. Prices continued to gain traction. The Median Sales Price increased 6.3 percent to $202,000. List to Close was down 4.2 percent to 113 days. Sellers were encouraged as Months Supply of Homes for Sale was down 34.1 percent to 2.9 months.

There have been no striking changes to curtail what should be a decent run of home sales over the next several months. Mortgage rates have remained stubbornly and wonderfully low, the unemployment rate has remained at or near 5.0 percent for eight straight months and wages have increased for a great many people. New construction has been slow, and that may be a damper on sales, but the general outlook remains strong.

Negative housing headlines should be read with calm or skepticism, not alarm. National housing trends, like the steady rise in home prices and decline in inventory, should certainly be observed with care, but tracking wider economic conditions is also necessary. Buyers want to get into the market, but unlike the rising-price sales environment of ten years ago, people are not diving headlong into risky mortgages or uncomfortable situations. This carefulness should be celebrated, not feared.

New Listings in the Charlotte region decreased 0.2 percent to 5,582. Pending Sales were up 20.0 percent to 4,864. Inventory levels fell 27.8 percent to 10,145 units.

Prices continued to gain traction. The Median Sales Price increased 3.7 percent to $198,000. List to Close was down 5.4 percent to 122 days. Sellers were encouraged as Months Supply of Homes for Sale was down 36.4 percent to 2.8 months.

Employment figures are positive, wages are going up and employers are hiring. Consumers are holding for the right deal, even in the face of extremely low mortgage rates. As seller and builder confidence increases, we should see more activity in Q2 2016. The second quarter tends to rank as the best time to list a home for sale. But if inventory stays low, it will be difficult to sustain sales increases in year-over-year comparisons. Prices are seemingly not so high as to stall the market completely. Demand is present but an abundance of choice is not, and therein lies the rub.

The primary story, both nationally and in local submarkets, is a dwindling months’ supply of inventory. The cure, of course, is more inventory. But new construction has been lagging during this opportune moment, and sellers of existing homes are not yet hitting the market in droves. The heart of the selling season has yet to begin, so we’re still optimistically watching for an increase in activity in the coming months.

New Listings in the Charlotte region decreased 0.2 percent to 3,993. Pending Sales were up 22.2 percent to 3,814. Inventory levels fell 26.4 percent to 9,935 units. Prices continued to gain traction. The Median Sales Price increased 2.2 percent to $182,000. List to Close was down 3.8 percent to 126 days. Sellers were encouraged as Months Supply of Homes for Sale was down 34.9 percent to 2.8 months.

National housing starts were up by 10.8 percent at the end of 2015 when compared to 2014, and the unemployment rate is holding low and steady at or near 4.9 percent. Meanwhile, mortgage rates continue to astound below 4.0 percent and we have witnessed an unprecedented 70 consecutive months of private-sector job growth. As consumers navigate their options, competition for the best available properties should be profound, especially if the market remains hobbled by a lack of supply.

Check out our March 2016 Market Update Videos to see how your area market performed in February 2016.