Home sales activity continued to slow in September across the Catawba Valley region
Nov. 8, 2022
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Home sales in the Catawba Valley region continued to fall in September, declining 24 percent year-over-year as 349 homes sold across the four-counties that make up the Hickory-Lenoir MSA. Sales compared to the previous month (August 2022) were also down 7.4 percent, as buyers, hindered by rising interest rates, prices and tight inventory, continue to pull back from the market.
Housing statistics included in this report are completed transactions that include single-family and condo/townhomes only, according to data from Canopy MLS.
Pending contract activity declined five percent in September, as 376 homes went under contract compared to 396 homes under contract during the previous year. Contract activity is typically a good predictor of future sales as they tend to close within 45-60 days. Contract activity was down 12.4 percent when compared to contracts in August 2022. Buyer interest and foot-traffic, as seen through Canopy MLS showing reports, continues to be strong particularly in Hickory and Newton, where listings are averaging eight showings (or buyers) per listing in September. Buyers are seeking homes in the affordable price range closer to amenities, as homes priced from $100,000 to $200,000 averaged 12 showings per listing in September, while the $200,000 to $300,000, price range averaged nine showings per listings in Hickory.
"Buyers continue to seek out affordable options closer to our town centers, and we can see that based on the showing activity, said Donna Austin, President of Catawba Valley Association of Realtors® and Realtor®/broker with Coldwell Banker Boyd & Hassel, Inc. “The increase in mortgage rates has definitely had an impact on sales, but we are seeing many lenders offering strategies and programs, like 2-1 Buydown, to help buyers with rates. Your local Realtor® is the best resource for buyers and sellers as we navigate this ever-changing market.”
Seller confidence continues to fall as a result of buyers pulling back. New listing activity showed sellers listed 388 homes in September, which is down 8.7 percent compared to last year, when 425 homes were listed. Compared to new listing activity in August 2022, activity is down 20 percent. New listing activity is essential to helping replenish inventory. Year-to-date activity shows Catawba Valley region’s listing activity is down only 2.6 percent when compared to new listings activity for the same period (January-September) of 2021.
Inventory at report time, showed 562 homes for sale, which is down only 1.2 percent when compared to inventory this time last year, while months of supply was unchanged compared to last year, at 1.5 months of supply.
Low inventory continues to pressure prices across the four-county region. Both the median sales price ($250,000) and the average sales price ($309,106) rose 8.7 percent and 9.6 percent year-over-year respectively, while the average list price rose 16.7 percent year-over-year to $368,182. Price appreciation seems to be moderating a bit as the median sales price declined 3.5 percent when compared to August 2022, while the average sales price dipped 2.8 percent compared to the previous month (August 2022).
The original list price to sales price measure in September also dipped a bit in buyers favor, to 97.5 percent, as sellers no longer receive all of asking price like they did during the latter half of 2021. Days on market until sale however continues to show the strength of sellers, as homes averaged 21 days on market until sale in September, which is nearly unchanged compared to last year, while the Charlotte market to the south and Asheville market to the west, are starting to see days on market increasing.
A closer look at sales across the four counties in September 2022
Alexander County closed sales increased 15.4 percent year-over-year as 30 homes sold compared to 26 in September 2021. Pending contracts were down 14.8 percent as 23 homes went under contract versus 27 this time last year. New listings however increased 7.7 percent as sellers listed 28 homes for sale compared to 26 in September 2021, which should help with inventory over time. Inventory dipped 2.4 percent year-over-year and showed 41 homes for sale at report time or 1.5 months of supply, which is up 7.1 percent compared to last year. Buyers will enjoy the small dips in price this past month. Both the median sales price ($227,250) and the average sales price ($268,542) decreased 13.3 percent and 10.1 percent year-over-year respectively, while the average list price dropped 12.1 percent to $362,275. This brought the original list price to sales price measure to 100.8 percent in September as sellers continue to control the market. Homes are selling quickly. Days on market until sale showed properties averaging 11 days on market until sale compared to 16 days this time last year.
Burke County home sales decreased 23.1 percent year-over-year as 80 homes sold versus 104 homes sold this time last year. Pending contract activity dipped 1.3 percent year-over-year as 74 homes went under contract versus 75 this time last year. New listings decreased 20.7 percent to 69 homes in September 2022, from 87 last year. Inventory at report time declined 24.1 percent year-over-year leaving 107 homes for sale or 1.3 months of supply. This time last year supply in Burke County hovered at 1.8 months of supply. The median sales price ($240,000) increased 3 percent and average sales price ($278,637) decreased by 12.8 percent. The average list price also rose (+29.1 percent) to $395,491. This brought the original list price to sales price measure to 95.7 percent, a 2 percent decrease in September 2022. This time last year the metric was 97.7 percent. Homes are still selling quickly, days on market decreased 20 percent in September 2022, showing homes averaging 20 days on market until sale compared to 25 days on market this time last year.
Caldwell County closed sales in September fell 19.8 percent year-over-year as 73 homes sold, versus 91 homes that sold in Caldwell County last September. Pending contract activity dropped 11.4 percent year-over-year, as 70 homes went under contract, compared to 79 under contract this time last year. New listing activity decreased 8.4 percent year-over-year as sellers listed 76 homes for sale compared to 83 homes added in September 2021. Inventory at report time showed 101 homes for sale and 1.4 months of supply, both metrics are unchanged compared to last year. Prices were mixed. Buyers in Caldwell enjoyed a 2.3 percent decline in the median sales price which was $215,000, while the average sales priced increased 10.8 percent to $262,387. This brought the original list price to sales price measure up a notch, from 98.2 percent in September 2021, to 99.1 percent this past September, as sellers still enjoy nearly all of asking prices for their homes. Homes continue to sell quickly, but time on market increased 20 percent in September, as homes averaged 24 days on market until sale compared to 20 days on market in September 2021.
Catawba County home sales fell 30.3 percent year-over-year as 166 homes sold versus 238 that sold in September 2021. Pending sales declined 2.8 percent as 209 homes went under contract compared to 215 that were under contract a year ago. New listing activity showed sellers listing 215 homes for sale, a 6.1 percent year-over-year decline compared to 229 new listings entering the market in September 2021. Inventory at report time increased 9.8 percent year-over-year, leaving 313 homes for sale or 1.6 months of supply. A year ago, there were 285 homes for sale at 1.2 months of supply. Still, the uptick in inventory has had little effect on price growth. Both the median sales price ($279,791) and the average sales price ($351,665) rose 21.6 percent and 25 percent year-over-year respectively, while the average list price increased 12.9 percent to $377,011. This brought the original list price to sales price metric to 97 percent in September when is down 2.1 percent from last September at 99.1 percent. Homes continue to sell quickly, even as days on market rose by 4.5 percent, as homes averaged 23 days on market until sale compared to 22 days this time last year.
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, Asheville and Catawba Valley regions spanning across North Carolina, South Carolina and outside of the Carolinas. 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: 11/8/2022