The uncertainty of interest rates and their effect on buying power continues to affect homebuyer and seller confidence in the Charlotte region
Mar. 24, 2023
Kim Walker, 704-940-3149
CHARLOTTE, N.C. — With buyer demand down from peak levels, home sales across the Charlotte region continued to trend down, according to February data from Canopy MLS. Sales were down 27.8 percent year-over-year as 2,731 homes sold across the 16-county region. This time last year nearly a thousand more units sold in February 2022. Sales compared to the previous month (January 2023) were up 20.8 percent, reflecting buyers’ reaction to rates at the start of 2023, which fell below 6.5 percent during the second week of January. Sales included in this report are for single-family and condo-townhome sales only.
Pending sales also fell 8.3 percent year-over-year as 3,851 homes went under contract during the month. Compared to January 2023, contract activity is up 5.9 percent as buyers continue to navigate rising prices and mortgage rates, just ahead of the spring market. Though contract activity continues to be down, buyer interest and showing activity is steady. Showings across the Charlotte MSA were down year-over-year, but month-over-month activity for homes priced between $200K to $300K, averaged 9.5 showings (or potential buyers) per listing. Buyers in February showed high interest in Matthews (10.4 showings per listing), Waxhaw (8.7 showings per listing), Concord (8.6 showings per listing), and the city of Charlotte (8.6 showings per listing).
New listings which tend to reflect seller confidence declined 18.3 percent year-over-year in February as sellers listed 3,417 homes for sale. Month-over-month new listing activity was up 7.3 percent. This is the second consecutive month-over-month rise which could have a small impact on inventory and buyer choice, should this activity continue building throughout the spring market.
“Sales activity at this time of year typically reflects sellers getting their homes ready to list and buyers getting pre-approvals in place.” said Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive. “This year’s market has surprised both buyers and sellers. Sellers are finding that days on market are increasing as buyers’ buying power has been stripped by higher interest rates, causing buyers to take more time reaching a purchasing decision. The number of homes sold in February compared to last February has fallen nearly 28 percent, while inventory increased to about 4,700 homes or 1.2 months of supply. The uncertainty of interest rates and their effect on buying power continues to affect buyer and seller confidence.”
Inventory in February increased 70.5 percent to 4,717 homes for sale compared to 2,767 homes for sale a year ago. Months of supply increased 100 percent to 1.2 months, which continues to reflect tight supply and a strong seller’s market. The following areas saw significant increases in months of supply in February: Anson Co. (2.7 months of supply), Cleveland Co. (1.9 months of supply), Iredell Co. (1.7 months of supply), Lincoln Co. (1.6 months of supply), Stanly Co. (2.1 months of supply), Davidson (1.9 months of supply), Statesville (2.2 months of supply).
Prices were mixed in February, with the median sales price ($353,550) down 1.9 percent year-over-year and the average sales price ($421,867) rising 3.7 percent compared to last February. Month-over-month the median sales price, which is the best measure of price over time, is down 5.7 percent. Since June 2022’s peak median sales price of $399,900, the median sales price has fallen 12 percent. The average list price of $466,864 rose 7.1 percent year-over-year, which brought the original list price to sales price measure to 95.3 percent, which is down 5.4 percent from last February’s 100.7 percent.
Johannes continued, “There are numerous factors causing consumers anxiety, from inflation to rising rates, as well as inventory. However, continued appreciation, increasing supply, and a strong job market contribute to just a few of the reasons so many people are moving to our area. The gap between new listings and sales has grown and if this pattern holds, we will see days on market climb closer to five to six months of inventory, which is reflective of a healthy market. While this is a challenging time for buyers and sellers, the value and guidance of a Realtor® is key to navigating our complex housing market.”
The time homes spent on market continued to increase in buyers favor. List to close increased 27.5 percent to 102 days compared to 80 days in February 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes averaged 48 days on market until sale compared to 24 days on market in February 2022.
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 2023 Association/Canopy MLS President Tiffany Johannes, Realtor®/Broker-in-charge with RE/MAX Executive Ballantyne, 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: 3/24/2023