CHARLOTTE, N.C.— At the close of 2021, sales across the 16-county Charlotte region reached their highest level yet, as a total of 59,031 homes were sold during the year, representing an 8.2 percent increase over total homes sold in 2020, which was also a banner year of sales. During the month of December 2021, there were 4,702 homes sold, representing a 5.8 percent year-over-year decline when compared to December 2020 closings, and a sign of a return to a more normalized market, when winter sales are typically slower. These are completed transactions that include single-family and condo/townhomes only, according to data from Canopy MLS.
Yearend pending sales figures show that buyer demand over the last year has been particularly strong, as 59,979 homes went under contract in 2021, an increase of 5.6 percent compared to the total number of contracts written in 2020 and a sign that the demand for homes in the region will continue to be steady headed into first quarter 2022. Pending sales activity during the month of December 2021 rose 8.3 percent year-over-year as buyers, pressed by rising rates, drove nearly 4,000 homes under contract during the month.
Seller’s market conditions continued to prevail, as new listing activity was mostly unchanged during the month of December, dipping slightly, 0.7 percent year-over-year as sellers listed 3,462 homes for sale, roughly 24 less than what was listed during the month of December 2020. However, yearend figures showed new listing activity up nearly 5 percent over activity in 2020, with 64,010 total new listings, which is a welcome indicator for buyers, headed into the new year. Buyers would need to look back to yearend 2017 to find as strong of a year-over-year increase headed into the new year.
Still, buyers will continue to face headwinds in 2022, as inventory challenges persist and listings will be absorbed almost as soon as they come on market. Total inventory at report time, showed 3,041 homes for sale, representing a 40.3 percent year-over-year decline, or 0.6 months of supply (roughly 18 days of supply at the current pace).
“Sales activity this past year continues to show just how desirable the Charlotte market is. Sales and prices reached new heights, inventory was and still is, critically low and yet homes sold in record time and often for well above asking price,” said 2022 Association/Canopy MLS President Lee Allen, Realtor®/Broker-in-charge with RE/MAX Executive. “Though mortgage rates are rising, they’re still beginning the year at historic lows and remain attractive. However, as rates push upwards, we can expect steady buyer activity, as locking into a firm mortgage payment motivated many renters this past year and will drive sales throughout the year.”
Low inventory definitely impacted prices in 2021 and this dynamic will continue, although economists expect a slower rate of price increase this year. Yearend figures show the average sales price for the Charlotte region in 2021 topped $386,849 an increase of 11.9 percent over 2020’s average sales price. However, the median sales price, which represents the best measure of price over time, settled at $325,180, a 16.1 percent increase in price compared to 2020.
Allen continued, “Realtors® will continue to watch affordability this year, and its impact on first-time home buyers and workforce buyers. What we are seeing is that there continues to be a growing lack of affordability, particularly for buyers desiring to live in the city of Charlotte, with surrounding counties typically thought of as rural, still offering more affordable solutions for buyers willing to trade commute for affordability.”
The original list price to sales price ratio for all of 2021 was 100.8 percent, showing sellers in the region received all or over asking prices, when their homes sold, similar to 2020. Low supply amidst steady buyer demand will continue in the 2022 housing market and will keep prices elevated and sellers in control of the market.
2021 was a fast-moving market, where buyers had little time for negotiation. For all of 2021 the average number of days a property was on the market from the time it was listed until it closed (list to close) was 73 days, which is down 17 percent compared to December 2020, while Days on Market, the metric that accrues for “Active” and “Under Contract-Show” statuses, averaged 19 days in 2021. During the month of December 2021, days on market dropped 23.1 percent year-over-year and homes averaged 20 days until sale.
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 and four counties in South Carolina.
For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2022 Association/Canopy MLS President Lee Allen, Realtor®/Broker-in-charge with RE/MAX Executive, please contact Kim Walker.
Canopy MLS is a wholly-owned subsidiary corporation of Canopy Realtor® Association and is the private broker cooperative used by Realtors® to bring buyers and sellers together with access to thousands of residential listings in a multicounty service area, including Charlotte, the mountains area of North Carolina, South Carolina, and beyond. Canopy MLS, which has 21,000 subscribers, provides the most trustworthy, timely, accurate and complete property data along with proprietary tools for showings, market stats, predictive analytics, and more. Canopy MLS is used by its members to support consumers in their residential real estate transactions, whether selling, buying, investing or renting.
Original Publish Date: 1/13/2022