June 20, 2023
Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Home sales across the Charlotte region declined again in May, falling 16.6 percent year-over-year as 3,986 homes sold across the 16-county region. Sales compared to April, however increased 11.3 percent, as buyers continue navigating a complex housing market, that still includes tight inventory amidst high mortgage rates.
Data from Canopy MLS, showed a few areas around the region still experiencing positive, year-over-year closed sales in May: Cleveland Co. (+16.5%), Lake Norman (+3.3%), Chester Co., SC (63.6%) and Chesterfield Co., (30.8%). Sales included in this report are for single-family, condo and townhome sales only.
Pending contracts, which typically signal future sales, continued to be weaker than last year, declining 13.1 percent as 4,329 homes went under contract during the month. Contract activity compared to April is unchanged, as buyers willing to trade affordability for commute times, still signal high interest in a number of areas throughout the region and away from Charlotte’s core.
New listings however continued to fall in May, down 25.4 percent as sellers listed 4,568 homes for sale compared to more than 6,100 newly listed homes during the same period last year. New listings compared to April increased 5 percent month-over-month.
“Prices across the region continue to moderate and fortunately are better than the national median and holding steady, which continues to benefit buyers,” said Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive. “Inventory and supply however continue to be a challenge, hence buyers seeking homes further out from Charlotte’s core. With rent prices up 28 percent since 2020, the purchase of a home is still the best long-term investment. Buyers still have a number of options, like 2-1 buydown programs, to assist with the purchase of a home.”
Inventory in May increased 6.7 percent to 4,667 homes for sale at report time, which equates to 1.3 months of supply. In May 2022, inventory showed 4,374 homes for sale or 0.9 months of supply (approximately 27 days). Supply is up 44.4 percent compared to last May. Though rising, supply and inventory continue to be tight throughout the region, as supply seems to have stalled at 1.3 months of supply since March, reflecting a strong seller’s market.
The median sales price in May ($385,000) declined 2 percent year-over-year, but compared April’s median sales price ($375,900) the median price is up 2.4 percent. May’s average sales price increased 4.6 percent year-over-year to $483,322, and is up 5 percent compared to April’s average sales price. The average list price increased 11.1 percent to $534,188, which brought the original list price to sales price measure to 98 percent, as sellers across the region continue to receive nearly all of asking prices for their homes. In May 2022, however, sellers received 102.8 percent of asking prices.
Johannes continued, “Charlotte’s diverse economy and solid job growth, continue to outperform national trends, which makes us attractive to newcomers, and earning the region a ranking of eighth in the country, in U.S. News & World’s rankings of best place to live in 2023 and 2024. These factors, combined with home prices continuing to stabilize and positive wage growth will help improve housing affordability long-term, especially as our housing market continues to normalize.”
The time homes spent on market continued to increase in May. List to close increased 20.9 percent to 81 days compared to 67 days in May 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes averaged 34 days on market until sale compared to 14 days on market until sale, a 142.9 percent increase when compared to time on market in May 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: 6/20/2023