Rising rates and prices continue to hamper buyers this spring

April 19, 2022

CHARLOTTE, N.C.— Sales across the Charlotte region declined in March, falling 10.2 percent year-over-year as 4,519 homes sold across the 16-county region. Last year the spring selling season started off much stronger, as more than 5,000 homes sold during the month. This is the third month of year-over-year decline in home sales. Month-over-month, March sales compared to February 2022 are up 24.6 percent. Data included in this report are completed transactions that include single-family and condo/townhomes only, according to data from Canopy MLS.

Pending sales, were also down, signaling a third month of year-over-year declines, as buyers beleaguered by rising rates and critically low inventory, continue to pull back from the market. Contract activity declined 9.6 percent year-over-year as buyers still ready to purchase, drove 4,946 homes under contract during the month.  Year-over-year declines signal sales in the coming months could be weaker than activity seen in previous spring markets. Contract activity is up nearly 13 percent compared to February 2022. 

New listing activity also declined in March, falling 8.1 percent year-over-year as sellers brought 4,088 homes to market. This means that buyers will once again experience a highly competitive spring market, as demand continues to outstrip supply. Month-over-month new listing activity rose 28.5 percent.

2022 Association/Canopy MLS President Lee Allen said, “Though rising rates continue to impact buyers and contract activity, our showing statistics are strong and still show buyers are out in full force. Showing activity is up nearly 13 percent year-over-year with homes in the MSA seeing as many as 19 buyers per listing in March.” 

Inventory continues to move lower, with the 16 counties showing 2,455 homes for sale at report time or 0.5 months of supply, which is approximately 15 days of supply at the current sales pace. Prices are rising in relation to very low inventory.  The median sales price ($369,236) and the average sales price ($429,393) rose 20.4 percent and 15.6 percent year-over-year respectively, while the average list price rose 15.8 percent year-over-year to $455,574. The original list price to sales price ratio registered 101.8 percent, showing sellers in the region receiving all of asking price and more, for their homes during the month of March. 

Allen continued, “Unfortunately, housing affordability will continue to present major headwinds for buyers, as rising rates and continued price increases, hamper buyer and thus contract activity. We know that there are a number of buyers who had previously qualified at the 3 percent rate, but who are no longer able to buy, as rates inch higher into 4 and 5 percent territory.” 

Buyers will continue to see homes selling almost as quickly as they are listed, as the average number of days a property was on market from the time it was listed until it closed (list to close) fell to 76 days compared to 79 days in March 2021. Days on market, the metric that accrues for “Active” and “Under Contract-show” statuses, averaged 20 days, which is even faster than March 2021 when homes averaged 25 days on market 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.

The Canopy Realtor® Association is a trade association that provides its more than 16,000 Realtor® members with the resources and services they need to conduct ethical, professional, successful and profitable businesses. The Association is dedicated to being the region's primary resource for residential real estate information. The Association operates Canopy MLS, which has more than 21,000 subscribers and is the private cooperative Realtors® use for access to tens of thousands of residential listings in a 16-county service area, including Charlotte, 13 counties in the mountains of North Carolina as well as the Rock Hill area of South Carolina.

Original Publish Date: 4/19/2022