Charlotte Real Estate January 2024
Latest news on Charlotte real estate January 2024 and what it means for you…
January 2024 home sales declined in the 16-County Charlotte Region year-over-year, while pending sales increased — up 1.8% year-over-year. 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 showing activity rose in January, especially in Mecklenburg County and Charlotte (7.5 showings per listing); in Matthews (10.2 showings per listing); in Waxhaw (8.6 showings per listing); in Fort Mill (8.1 showings per listing).
The Charlotte market has stopped seeing large fluctuations in prices, indicating the market is stabilizing. Average sale price increased 7.3% in January compared with one year ago, while the median sale price declined just under one percent. 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. However, home buyers should not expect home prices to fall dramatically in 2024. Demand for housing in the region in a low inventory environment will keep home prices from falling.
Listing activity increased in January by 10.1% compared with January one year ago. However, while new listings increased, overall inventory declined 6.6% from the same time last year and the months supply of homes for sale was just 1.6 months, keeping Charlotte region in “home seller territory.” Mecklenburg County has just 1.2 months of inventory in January. Potential home sellers still appear not willing to give up low mortgage rates and take on higher rates for a new home.
TODAY’S HOUSING SUPPLY IS A SWEET SPOT FOR SELLERS
Although Charlotte Region technically remains a seller’s market with just 1.6 months of inventory, the days of receiving significant amounts over asking price are most likely behind us and sellers need to reset their expectations, as well as ensure their homes are in good condition and show well. Buyers appear willing to pay a premium price for homes, but they expect those homes to be in move-in condition and updated.
HOW CHANGING MORTGAGE RATES IMPACT YOU: INFOGRAPHIC
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 4.5% year-over- year in January 2024.
Averaging 41 days on market, the days on market declined 10.9% year-over-year. Days on market were five days lower than in January 2023.
With a list to sale price ratio of 96.4 % in January 2024 (up 1.8% year-over-year), buyers are carefully scrutinizing listing prices and sellers are not in as strong of a position as they were during the pandemic years.
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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