Charlotte Real Estate February 2024
Latest news on Charlotte real estate February 2024 and what it means for you…
February 2024 home sales declined slightly in the 16-County Charlotte Region year-over-year. However, closed sales increased 26.7% over January — the first double-digit gain since June 2021. Pending sales increased — up 4.6% year-over-year and up 7.1% from the previous month of January. Although home buyers remain frustrated by fluctuating rates, lack of new inventory, rising home prices, and economic uncertainty, buyers are adjusting to the higher interest rate environment.
Home showings remained high in February, especially in Mecklenburg County and Charlotte (7.5 showings per listing); in Matthews (9.3 showings per listing); in Waxhaw (8.6 showings per listing).
The Charlotte market’s home prices are on the rise. Average sale price increased 11% in February compared with one year ago, while the median sale price increased 8.5% year-over-year and was up 1.7% year-to-date from last year. With the benefit of hindsight, it would appear that the Charlotte region median home price peaked in June 2022, when it rose to nearly $400,000. Demand for housing in the region in a low inventory environment will keep home prices from falling in 2024.
February saw the fourth consecutive month of increases in new listings. Listing activity increased in February 19.7% compared with February one year ago. However, while new listings increased and overall inventory increased 7.3% from the same time last year, the months supply of homes for sale was just 1.6 months, keeping Charlotte region in “home seller territory.” Potential home sellers still appear not willing to give up low mortgage rates and take on higher rates for a new home.
THE LATEST NATIONAL TRENDS IN HOUSING IN 2024
The real cost to buy a house has increased significantly since 2022, as the Federal Reserve continued to increase rates. Since May 2023, the average 30-year fixed rate mortgage has remained mostly above 6.5% and hit a two-decade high September at 8%, impacting affordability. December mortgage rates declined to their lowest level since May 2023, averaging 6.61%. The Charlotte region housing affordability index continues to drop and impact sales volume. Housing affordability declined 11.1% year-over- year in February 2024 and declined 8.2% year-to-date.
Averaging 44 days on market, the days on market declined 8.3% year-over-year. Year-to-date, days on market averaged 43 days, down from 47 days in the same time frame one year ago.
The list to sale price ratio of 96.9 % in February 2024 (up 1.8% year-over-year) was up from January and was also up 1.7% year-to-date versus the same time frame one year ago.
Moving forward into the spring 2024 selling season, both sellers and buyers will continue to be distracted by economic concerns, high interest rates, affordability, and negative housing headlines. The slowdown in home sales that began when mortgage rates increased in 2022 is expected to continue in the coming months. The costs to purchase a home will remain high, challenging affordability at a time when overall budgets continue to be squeezed by inflation. Buying power will remain on the decline with high mortgage rates, pricing many first-time and workforce buyers out of the market.
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This Charlotte region housing market update is provided by Nina Hollander with Coldwell Banker Realty, Greater Charlotte area residential real estate expert serving Charlotte region home buyers and sellers since 1999.
If you’re considering selling or purchasing a home in the Charlotte region, I’d love an opportunity to earn your business, to exceed your expectations, and to show you why experience matters and how:
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