Charlotte, NC Region Housing Market Update:
The Charlotte region's housing market began the new year on a high note with closed and pending sales up by double digits compared with January 2016. Average and median sale prices were also up by double digits in the first month of 2017. Inventory and the months supply of homes remain low and well below what they were one year ago.
- January 2017 Closed Sales: up 14.8% versus January 2016.
- January 2017 Pending Sales: up 20.6% versus January 2016.
- January 2017 Average List Price: increased 7.5% to just under $308,00 versus January 2016.
- January 2017 Average Sale Prices: up 12.5% to just under $259,000 versus January 2016. Median Sale Price was also up 14.5% to $205,000 as compared with January 2016.
- January 2017 Percent of Original List Price Received: up 1.4% compared with January 2016 to 96.0%.
- January 2017 Inventory of Homes for Sale: down 25.0% versus January 2016, with new listings increasing by 4.7% in January 2017.
- December 2016 Months Supply of Homes for Sale: down 32.4% to 2.3 months. Charlotte region's housing market continues to be very much a seller's market, as it has been throughout the year, with parts of the Charlotte metro area having barely or less than 2 months of inventory.
The message for Charlotte region home buyers remains what it's been throughout 2016 and 2015 and isn't likely to change much in the foreseeable future:
- The supply of homes available to buy remains very tight and those that are on the market are selling more quickly with minimal negotiating room. In prime neighborhoods, we see many homes going into contract within days of listing. Home buyers continue to have fewer options to choose from and need to make decisions and offers more quickly than ever. With many homes receiving multiple offers, buyers also need to make "clean" offers with a minimum of contingencies.
- Home prices are continuing a steady increase and housing affordability continues to decrease. Buyers must be prepared to pay more for a home and to expect to negotiate less off the asking price. Depending where in the Charlotte metro area buyers are looking, they may not be able to negotiate at all and should expect to see bidding wars that drive the final sale price above asking price.
- For buyers looking for homes priced under $250,000, and especially under $200,000, the selection is very slim these days.... and no wonder as the average price of homes sold continued to increase month after month throughout 2016.
- With the housing affordability index down by 12.5% in January 2017, a strong argument can be made that home buyers should be making purchase decisions sooner rather than later, as affordability will most likely continue to decrease (and even more so if interest rates rise continue to rise in 2017).
The message for Charlotte region home sellers also remains what it's been since 2015 and doesn't appear poised to change much in the foreseeable future:
- When a home is priced right, staged right, and marketed right, it will sell and, on average, should sell in less than two months. The days from list to closing in January 2017 were down 6.6% to 114 days as compared with January 2016. Days on market till sale were down 16.7% to 55 days as compared with January 2016. Cumulative days on market were also down at year end, down 16.0% to 64 days in January 2017 versus January 2016.
- Sellers who have been overly aggressive in pricing their homes are not seeing their homes sell quickly, if at all. Pricing is still key even in a strong seller's market.
- With homes selling faster, sellers need to be prepared to move quickly and to have back-up plans for a new residence at the ready.
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This monthly Charlotte, NC region housing market update is brought to you courtesy of Nina Hollander and Carolinas Realty Partners, RE/MAX Executive, your Charlotte metro area real estate consultants.
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