Charlotte region’s real estate market in 2021 saw home sales reach their highest-ever levels. Average and median sale prices increased 15.5% and 16.1% respectively. Closed sales increased 8.2% year-over-year. Days on market dropped to just 19 days and inventory remained low at year-end. Charlotte region remained a home seller’s market throughout the year.
Charlotte Region Remained A Seller’s Market Throughout 2021
Latest news on how the Greater Charlotte region’s real estate market performed in 2021 and what it means for you…
2021 saw the continuation of the strong housing market in the 16-county greater Charlotte region. Buyer demand continued to exceed pre-pandemic levels straining inventory, sales momentum, and housing affordability throughout the year. Home sales in the Charlotte region reached their highest-ever levels in 2021.
With Charlotte recently ranked #5 as one of the top 10 hottest real estate markets for 2022 in the U.S., it’s not unreasonable to assume the Charlotte region’s housing market will remain competitive into 2022 and to continue to outperform national averages over the next several years. Moreover, the demand for homes in 2022 will be further exacerbated by demand from millennials as they age into their prime home buying years according to Odeta Kushi, Deputy Chief Economist at First American.
Historically low interest rates and pent-up demand fueled much of the buyer demand, as did the years of steady population growth in the Greater Charlotte area. Closed sales were up 8.2% in 2021 over 2020. Sales could easily have been higher if more inventory had been available. Pending sales were up 5.6% year-over-year. Both average and median sale prices increased in 2021 year-over-year, as did average listing prices. New listings were up, but not by much at 4.7% year-over-year.
Housing inventory remained at very low levels. With just 0.6 months of supply of homes at year-end (down from 1.1 in 2020), we continued to see some of the lowest levels of inventory on record in the Charlotte region. With inventory 40.3% lower at year-end 2021 compared with 2020, it’s clear that demand has continued to increase relative to supply, despite an increase in new listings year-over-year of 4.7%. This continues to present a unique opportunity for home sellers who are ready to list in 2022, as new listings will receive high visibility, spend less time on market and sell at premium prices. At year-end 2021, home sellers received 100.8% of list price in final sale price, on average. This was a 2.9% increase over 2020.
Averaging 19 days on market, homes continued to sell nearly as fast as they were listed. Days on market until sale were down 45.7% year-over-year. Multiple offers on homes were a factor in the Charlotte region real estate market throughout the year. It would appear that the low levels of inventory we saw in 2021 will continue to impact home prices in the coming months of 2022. Moving forward in the winter selling season, lack of adequate inventory to satisfy buyer demand is what could hold the market back in terms of sales momentum.
Wondering what this would mean for your family if you decide to buy or sell a Charlotte region home?