Many regions across the nation are suffering from a severe lack of housing inventory -- and that includes the Charlotte metro region. June 2017 saw the 25th consecutive month of inventory declines nationally... this, in turn, has resulted in increased home prices (now 64 consecutive months of year-over-year price increases). Lack of inventory and higher home prices have impacted affordability and availabilty for many home buyers, resulting in flat, if not lower, closed sales, as the infographic below clearly indicates.
On the good news front, mortgage rates remain low... so this is a good time to buy and lock in your payment for years to come before both home prices and rates increase further. And if you're a a home seller, listing your home for sale now also works to your advantage... you'll get a great price, sell quickly, and will be able to move on to the next house before prices and mortgage rates increase further. At some point, it's time to move on with your life and not worry about timing the market perfectly for the absolute highest price ever.
HOW THE CHARLOTTE, NC REGION COMPARES
The Charlotte metro is certainly "feeling" the impact of "thinventory" in the region. As of June 2017:
- Inventory was down 20.8% and the months supply of homes available for sale was 2.5 months, down 28.6%. While the national market is still somewhat more "balanced" at 4.3 months of inventory, the Charlotte region is totally a seller's market and we have pockets where inventory is barely 1 month. In the Charlotte region, as of June 2017, inventory for single family homes stood at 2.7 months while that for condos/townhouses stood at only 1.4 months
- In June 2016, this lack of inventory resulted in closed sales in the Charlotte region were down 3.8%, although for the first two quarters closed sales are in positive territory at 5.9%.
- Charlotte's home affordability index is down 7.7% in 2017 and down 5.7% as compared with June 2016. This indicates there are buyers who are being priced out of the market.
With relatively low unemployment in the Charlotte area and continued wage growth, low inventory of homes for sale would appear to be the primary culprit for any sales malaise rather than the lack of demand for homes.
This housing market update is brought to you courtesy of Nina Hollander and Carolinas Realty Partners, RE/MAX Executive, your Charlotte metro area real estate consultants.
If you are considering selling or purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that: