Home sales across the Charlotte region continued to decline in October, as seller confidence slips and buyers pullback from rising rates and prices
Nov. 18, 2022
Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Home sales across the Charlotte region continued to decline in October, falling nearly 30 percent year-over-year, as 3,568 homes sold. The month of October marks not only 10 months of sales declines, but is the largest decline since May 2020, when pandemic lockdowns brought housing activity to a near standstill. Month-over-month, sales are down 16 percent, as buyers and sellers continue to retreat from rising rates.
At the end of October, year-to-date figures showed more than 43,800 homes have been sold this year, and current pacing suggests the region is on track to end the year with close to 50,000 home sales, similar to yearend 2019.
Housing statistics included in this report are completed transactions that include single-family and condo/townhomes only, according to data from Canopy MLS.
Pending sales, which gauges buyer demand, declined 33.9 percent year-over-year, as 3,369 homes went under contract during the month, compared to a little over 5,000 contracts written in October of last year. Compared to the previous month (Sept. 2022) contract activity is down 12.4 percent, forecasting weaker sales in the months ahead.
Showing reports which reflect foot-traffic or buyer activity, showed listings across the Charlotte MSA averaged 6.5 showings (or buyers) per listing, in October, which is down compared to last month (Sept. 2022), when listings averaged 7.1 showings.
“Area home sales over the last few months reflect buyers and sellers still trying to adjust to the speedy rise in interest rates, which quickly reached 7 percent, but have since settled back into 6 percent territory, said Lee Allen, Canopy Realtor® Association/Canopy MLS president and Realtor®/broker with RE/MAX Executive Albemarle. “If there is a silver-lining, homebuyers no longer need to move at a frantic pace to find a home. In a number of areas around the region, inventory is increasing. Realtors® continue to be the consumer’s best resource for navigating the market and overcoming obstacles to purchase.”
Seller activity was also down compared to this time last year, as new listings declined 23 percent, with 4,224 homes listed in October. October’s new listing activity compared to September, was down 9.7 percent. As new listings come on market, lower demand has allowed listings to build. October’s inventory, increased 42.1 percent year-over-year to 7,511 homes for sale compared to 5,286 homes for sale in October 2021. Months of supply in October also rose 63.3 percent year-over-year to 1.8 months of supply compared to 1.1 month of supply a year ago. Subtle changes in supply should help to cool price appreciation over time.
Prices around the region continued to be higher than last year. Both the median sales price ($379,450) and the average sales price ($458,563) rose 13.3 percent and 18.1 percent year-over-year respectively, while the average list price increased 14.8 percent to $467,845. This brought the original list price to sales price measure down 3.9 percent to 96.6 percent. Last October this figure was 100.5 percent. Canopy MLS data showed price reductions on active listings started increasing across the MSA in April and has continued, which means that buyers are experiencing more leverage in the market.
Allen added, “On the other side of the transaction, sellers need to reset their expectations, and understand that the days of multiple offers over the asking price are no longer the norm. Working with a Realtor® who as access to real-time, accurate housing market data, down to the neighborhood level, can help sellers determine optimal prices for their homes. Homes that are price appropriately tend to attract more buyers while spending less time on market, alleviating the need for price reductions.”
Time on market across the region continues to increase, but still shows homes selling at a rapid pace, leaving buyers little time for negotiation. List to close which totaled 72 days in October 2021, increased to 83 days in October 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes averaged 27 days on market until sale, which is an increase from 17 days on market in October 2021.
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 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: 11/18/2022