March 15, 2024

Contact: Kim Walker, 704-940-3149

Down Payment Resource Tool Could be helpful this spring for buyers

CHARLOTTE, N.C. — The Charlotte region’s home sales grew in February, according to data from Canopy MLS, rising nearly 26.7 percent compared to January 2024, as buyers closed on 2,818 homes during the month, the largest gain in sales since June 2021.  February sales were nearly on par with sales across the 16-county region a year ago, down less than a percent (-0.7%), when buyers closed on 2,837 homes.  Canopy MLS sales included in this report represent single-family, condo, and townhomes.

Buyer demand remained steady, rising for a third consecutive month by 4.6 percent year-over-year as slightly more than 3,800 homes went under contract during the month, compared to 3,639 that were under contract a year ago.  Contract activity is also up compared to January by 7.1 percent, setting the stage for a potentially crowded market just ahead of the spring selling season.

Showing reports in February indicated buyer interest was heavy in Matthews and Waxhaw, where listings received an average of 9.3 showings (or potential buyers) per listing and 8.6 showings per listing respectively. Overall Mecklenburg County consistently ranks high with buyers, where homes received an average of 7.5 showings per listing this past month. The city of Charlotte’s properties also received high interest and averaged 7.6 showings per listing, followed by Union County listings, where properties received an average of seven showings per listing.

Sellers continued to respond positively to the market in February, offering 4,180 new listings, a significant increase of 19.7 percent compared to last year when sellers listed just under 3,500 new listings.  New listing activity increased 17.2 percent compared to January 2024, however, with inventory and supply already critically low across the region, supply remains unchanged compared to January 2024.  Both supply and inventory increased compared to last year, rising 7.3 percent to 5,628 homes for sale, while supply increased 14.3 percent from 1.4 months of supply last year to 1.6 months in February. 

“Buyers are taking advantage of lower rates compared to last year and continue to signal their desire to live in the city of Charlotte and Mecklenburg County, where inventory is already tight,” said Charisma Southerland, 2024 president of Canopy Realtor® Association/Canopy MLS and Realtor®/broker with Allen Tate Company. “Our region has been severely underbuilt since the Great Recession of 2008 and the pandemic only furthered our deficit. Seller activity in the form of new listings was weak throughout last year, due to higher mortgage rates. Consistent new listing activity over time is the only way to boost inventory and supply.”   

Inventory for Mecklenburg County in February declined 2.5 percent compared to last year and showed 1,530 homes for sale at report time or 1.2 months of supply. The city of Charlotte’s supply was similar at 1.2 months and had slightly more than 1,200 homes for sale, which is an extremely tight market.   

The inventory of single-family homes in February is up overall, 6.1 percent year-over-year, with homes priced from $300K-$400K and $400K-$500K seeing an increase in listings of 7.5 percent and 15.1 percent year-over-year respectively. The inventory of condos and townhomes however remains strong and continues to present buyers with more opportunities. Townhome inventory increased 26.4 percent year-over-year in February and condo inventory increased 10.6 percent year-over-year.

Prices rose in February, largely due to increased demand amidst critically low supply. The median sales price increased 8.5 percent year-over-year to $385,000, while the average sales price increased 11 percent compared to last year to $466,804.  The average list price across the region rose 11.3 percent to $514,633, which caused the original list price to sales price measure to rise 1.8 percent to 96.6 percent, a strong incentive for sellers to continue listing.

“Buyers will need to prepare for increased competition, price increases, and the potential for multiple offer situations. Working with a Buyer’s Agent has advantages and buyers should ask about the new Down Payment Assistance Resource tool incorporated in Canopy MLS listings. Nearly 72% of Canopy MLS listings qualify for assistance, said Southerland.”

Time on market declined in February, which means a faster-paced market for buyers.  In February the average number of days a property was on the market from the time it was listed until close (List to Close) was 92 days compared to 102 days in February 2023, while the “Days on Market” metric, which accounts for both “Active” and “Under-contract-show” statuses, indicates homes averaged 44 days on market before selling compared to 48 days in February 2023. 

Mecklenburg County home sales in February were slightly lower than last year, down 3 percent year-over-year as 1,069 homes sold compared to 1,100 homes that sold during the same period last year. Contract activity was nearly unchanged rising 1 percent as 1,384 homes went under contract during the month.  New listings in the county rose nearly 17 percent as sellers brought 1,474 homes to market during the month, the second consecutive month where new listings increased.

Inventory dipped however 2.5 percent to 1,530 homes for sale while supply increased 9.1 percent to 1.2 months of supply. Still, with supply and inventory critically low, prices increased. Both the median sales price ($430,000) and the average sales price ($552,271) increased by 7.8 percent and 11.8 percent year-over-year respectively, while the average list price rose 12.6 percent to $642,208. This brought the original list price to sales price measure to 97.8 percent as sellers received nearly all of asking price. Buyers in Mecklenburg will likely face a faster pace of sales and less negotiation time, as days on market showed homes are averaging 39 days on market until sale compared to 50 days on market in February 2023.

Closed sales in the city of Charlotte dipped 2.7 percent year-over-year as 869 homes sold compared to 893 that sold in February 2023. Contract activity was roughly unchanged, down 1.6 percent as buyers drove 1,133 homes under contract during the month.  New listings rose 14.5 percent year-over-year as sellers responded to the flurry of buyers in the market with nearly 1,200 new listings.  Inventory was roughly unchanged at 1,268 homes for sale and 1.2 months of supply.  Both the median sales price ($411,500) and the average sales price ($543,785) rose 8.9 percent and 16.1 percent year-over-year respectively, while the average list price increased 13.5 percent to $612,982. This brought the original list price to sales price measure to 98.3 percent while days on market showed homes sold quickly, averaging 44 days on market compared to 50 days on market last February.

Southerland added, "The Charlotte region has a dire need for more housing stock across all housing types and price points, so last month’s increase in new listings was a welcome sign. The National Association of Realtors® is also pushing for increased housing with the passage of H.R. 1321- The More Home on the Market Act – which would lower the tax hit on home sales and bring additional inventory to the market.”

Canopy Realtor^® Association provides monthly reports on residential real estate market activity for the Charlotte region based on data from Canopy MLS. The Charlotte region, which this report is based on, includes 12 counties in North Carolina (Alexander, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly, and Union) and four counties in South Carolina (Chester, Chesterfield, Lancaster and York).

For more residential housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2024 Association/Canopy MLS President Charisma Southerland, Realtor®/Broker with Allen Tate Company, please contact Kim Walker.

Canopy Realtor® Association owns and operates Canopy MLS, the region’s primary source for accurate and timely property data in a multicounty service area including the Charlotte MSA, Asheville MSA and Catawba Valley region spanning across North Carolina and South Carolina to outside the Carolinas. Canopy MLS provides the latest technology, tools and analytics that Realtors® utilize to support consumers with their residential real estate transactions. 

Original Publish Date: 3/15/2024