Charlotte Region real estate market in January 2022 saw home sales decrease slightly by 0.7% year-over-year and home prices increase 15.8%, on average. Lack of inventory is limiting sales momentum with demand for homes continuing to outpace the supply of homes. Year-over-year, days on market dropped 14.8% in January 2022. The months supply of homes and overall inventory were also down significantly year-over-year. All this kept the Charlotte region a home seller’s market in January 2022 with home affordability decreasing 18.2% year-over-year.
Charlotte Region Remained A Seller’s Market In January 2022
Latest news on the Greater Charlotte region’s real estate market in January 2022 and what it means for you…
January 2022 saw the continuation of the strong housing market in the 16 county greater Charlotte region we’ve experienced for almost two years now. Buyer demand continues to exceed pre-pandemic levels straining inventory and sales momentum.
Low interest rates and pent-up demand continue to fuel much of the buyer demand, as do the years of steady population growth in the Greater Charlotte area. Closed sales were down 0.7% in January. Sales could easily have been higher if more inventory had been available. Pending sales were also down 5.3% year-over-year. January’s activity also reflected some seasonality, as the Charlotte area was impacted by two winter storms in January. Both average and median sale prices increased in January 2022 year-over-year with median sale prices reaching new historic highs.
Housing inventory remained at very low levels. With just 0.5 of a month of supply of homes (down 50% from one month in January 2021), we continue to see some of the lowest levels of inventory on record in the Charlotte region. At 0.5 months we are looking at a two week supply of housing inventory. With inventory 43.9% lower than in January 2021, it’s clear that demand has continued to increase relative to supply. This presents a unique opportunity for sellers who are ready to list, as new listings receive high visibility, spend less time on market and sell at premium prices.
Averaging 23 days on market, homes continued to sell nearly as fast as they were listed. Days on market until sale were down 14.8% year-over-year. Multiple offers on homes remain a factor in the Charlotte region real estate market. Both median and average home sale prices were up across the region year-over-year. The low levels of inventory will continue to impact home prices in the coming months.
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. While buyers are frustrated by rising interest rates, rising home prices, razor-thin inventory, and inflation, with pending contracts up 12% over January 2021 it’s not unreasonable to assume that serious buyers continue to actively look for homes. If month-over-month pending sales continue to increase, we could well see a surge in buyer demand at the start of the spring selling season in late March. Moreover, buyers are motivated to act sooner rather than later because of rising mortgage rates and rising rents which continue to outpace monthly mortgage payments.
Charlotte Region Real Estate Snapshot: January 2022
Closed Sales: down 0.7% year-over-year.
Homes Sold: 3,521 in January 2022 versus 3,547 in January 2021.
Pending Sales: down 5.3% year-over-year.
New Listings: down 12.9% year-over-year.
Inventory of Homes: down 43.9% year-over-year to 2,546.
Months Supply of Homes: down 50% with just 0.5 months supply of homes compared with 1 month in January 2021.
Days on Market Until Sale: 23 days in January 2022 versus 27 days in January 2021.
Average Sale Price: up 15.8% year-over-year to $393,550.
Median Sale Price: up 22.7% year-over-year to $349,700.
% of Original List Price Received: 100.1%, increasing 1.2% year-over-year.
Want to know what this would mean for your family if you decide to buy or sell a Charlotte region home?