Charlotte, NC Region Housing Market Update:
The Charlotte region's housing market continued the new year on a high note with closed and pending sales both up by double digits compared with March 2016. Average and median sale prices were also up in the third month of 2017. Inventory and the months supply of homes remain low and well below what they were one year ago.
- March 2017 Closed Sales: up 11.5% versus March 2016. Year-to-date, closed sales were up 11.9%.
- March 2017 Pending Sales: up 16.2% versus March 2016 and up 12.4% year-to-date.
- March 2017 Average List Price: increased 9.4% to just under $339,00 versus March 2016. Year-to-date, average list prices are up 7.5% to just over $323,000.
- March 2017 Average Sale Prices: up 10.4% to just over $271,000 versus March 2016 and up 9.7% year-to-date. Median Sale Price was also up 11.6% to just under $221,00 as compared with March 2016 and up 11.7% year-todate.
- March 2017 Percent of Original List Price Received: up 1.4% compared with March 2016 to 96.9% and up 1.3% year-to-date to 96.4%.
- March 2017 Inventory of Homes for Sale: down 20.3% versus March 2016, with new listings increasing by just 6.2% in March 2017.
- March 2017 Months Supply of Homes for Sale: down 27.3% to 2.4 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 two months of inventory.
The message for Charlotte region home buyers remains what it's been for the past two years 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 and now into 2017/
- With the housing affordability index down by 10.3% in March 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). First time home buyers are feeling the squeeze these days.
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 March 2017 were down 14.8% to 104 days as compared with March 2016. Days on market till sale were down 20.3% to 55 days as compared with March 2016. Cumulative days on market were also down 17.5% to 66 days in March 2017 versus March 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.
Want to stay on top of the market trends in your Charlotte metro neighborhood?
Sign up for your FREE Market Snapshot. You'll receive the latest trends for your neighborhood for sold homes, properties for sale, inventory counts, and even "days-on-market". You can also view information regarding schools and community.
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.
If you are considering selling or purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that:
"The Right Broker Makes All The Difference."