Charlotte Region real estate market in March 2022 saw home sales drop 10.2% year-over-year and home prices increase 15.6%, on average. Lack of inventory limited sales momentum with demand for homes continuing to outpace the supply of homes. Year-over-year, days on market dropped 20% in March 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 March 2022 with home affordability decreasing 16.3% year-over-year and 16.8% year-to-date.
Charlotte Region Remained A Seller’s Market In March 2022
Latest news on the Greater Charlotte region’s real estate market in March 2022 and what it means for you…
March 2022 saw the continuation of the strong housing market in the 16 county greater Charlotte region we’ve experienced for over two years now. Buyer demand continued to exceed pre-pandemic levels straining inventory and sales momentum. Sales were down for a third consecutive month as was new listing activity in 2022. A fast-paced market means buyers have less time to make decisions and negotiate, as multiple offers in high-demand areas cause homes to sell and close quickly.
Pent-up demand from the days of the pandemic continued to fuel much of the buyer demand, as did the years of steady population growth in the Greater Charlotte area. Closed sales were down 10.2% year-over-year in March. Sales could easily have been higher if more inventory had been available. Pending sales were also down 9.6% year-over-year. Both average and median sale prices increased in March 2022 year-over-year with median sale prices reaching new historic highs. The median sale price is the best measure of price over time, as it factors out extreme highs and lows in home prices.
Housing inventory remained at very low levels. With just 0.5 of a month of supply of homes (down 37.5% from 0.8 months in March 2021), we continued 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 38.8% lower than in March 2021 and new listings down 8.1% year-over-year, it’s clear that demand has continued to increase relative to supply. This continued to present 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 20 days on market, homes continued to sell nearly as fast as they were listed. Days on market until sale were down 5 days (down 20%) year-over-year. They were also down 3 days month-over-month. Multiple offers on homes remained a factor in the Charlotte region real estate market. Both median and average home sale prices were up across the region year-over-year. It seems the low levels of inventory will continue to impact home prices in the coming months as we begin our spring selling season in earnest. With a list to sale price ratio of 101.8% in March 2022 (up 1.7% year-over-year), it’s clear that home sellers continue to be in command of the market and are receiving well over asking price for their homes.
Moving forward toward the spring selling season, lack of adequate inventory to satisfy buyer demand coupled with increasing interest rates and home price increases reducing affordability are 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, it’s not unreasonable to assume that serious buyers continue to actively look for homes. 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: March 2022
Closed Sales: down 10.2% year-over-year; down 3.0% year-to-date.
Homes Sold: 4,519 in March 2022 versus 5,034 in March 2021; 11,898 year-to-date versus 12,266 for the same time period one year ago.
Pending Sales: down 9.6% year-over-year; down 9.0% year-to-date.
New Listings: down 8.1% year-over-year; down 10.2% year-to-date.
Inventory of Homes: down 38.8% year-over-year to 2,455 compared with 4,012 in March 2021.
Months Supply of Homes: down 37.5% with just 0.5 months supply of homes compared with 0.8 months in March 2021.
Days on Market Until Sale: 20 days in March 2022 versus 25 days in March 2021. Year-to-date, days on market are down 21.4% to 22 days year-over-year.
Average Sale Price: up 15.6% year-over-year to $429,393. Year-to-date, average sale prices are up 16.4% to $411,046 year-over-year.
Median Sale Price: up 20.4% year-over-year to $369,236. Year-to-date, median sale prices are up 21.2% to $360,000 year-over-year.
% of Original List Price Received: 101.8%, increasing 1.7% year-over-year. Year-to-date, the percent of original list price received is 100.9%, up 1.4% year-over-year.
Housing Affordability Index: down 16.3% year-over-year to 77 from 92; year-to-date, down 16.8% to 79 from 95.
Want to know what this would mean for your family if you decide to buy or sell a Charlotte region home?