Slower pace of home sales has helped inventory to rise slightly, as new listing and seller activity increases in May
June 22, 2022
CHARLOTTE, N.C. — Closed sales continued to cool in the Charlotte region in May, with 366 fewer homes sold, a 7.3 percent decline compared to the prior year. Month-over-month, sales saw a slight 1.3 percent increase, as a total of 4,639 homes sold in May compared to 4,578 homes sold in April 2022. Rising mortgage rates may have stalled sales, but it has effectively slowed buyer demand, allowing inventory to rise slightly, with an additional 620 homes added since report time in April 2022.
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, the metric used to track buyer demand, were down 2.1 percent in May, as buyers drove 5,241 contracts, into the pipeline of sales. Last May, there were 114 more contracts written during the frenetic spring selling season. However, contract activity increased 5 percent month-over-month, as buyers purchased 248 more homes in May than in April.
New listings increased 4.4 percent over May 2021, as sellers listed 6,055 homes for sale. Compared to April 2022, new listings increased 5.5 percent, a positive sign for buyers still searching, even as rates continue to rise.
“Sellers sense the market is slowing and that buyers still in the market for homes, are more measured about their purchases, in the wake of surging home prices and mortgage rates, said Lee Allen, 2022 Association/Canopy MLS president. ”Data released last week from realtor.com showed the largest historical weekly increase in total active listing nationwide, so we expect to see more of this activity in the coming months as sellers locally start to realize their ability to capitalize on this hot housing market could be declining.”
Inventory in the Charlotte region continued to increase month-over-month, as 620 homes were added since April 2022, bringing months of supply to 0.8 months or approximately 24 days of supply at the current sales pace. Last month supply ticked down to 0.7 or 21 days of supply.
Overall, inventory in the region continues to be very limited, at about 3,788 homes for sale at report time in May. In May 2021, there were 4,319 homes for sale in the Charlotte region.
As expected, low inventory in the region has continued to pressure prices, with May’s median sales price at $391,240, a 20.8 percent year-over-year increase compared to May of last year. The average sales price has risen 17.3 percent to $462,465 while the average list price rose 22 percent year-over-year to $487,607. As is typical of a strong seller’s market, sellers in the region received well over asking price as the original list price to sale price measure increased 1.3 percent year-over-year to 102.9 percent of asking prices in May.
“High mortgage rates and home prices have started to make purchasing a home increasingly difficult, especially for first-time buyers and workforce buyers. However, a recent survey from Bankrate.com, showed a strong majority of Gen-Z and Millennial Americans are looking for affordability, and are willing to take on fixer-uppers or even move into areas seeing less demand, which bodes well for our suburbs and more rural areas that surround Mecklenburg County.”
Time on market continues to show a fast pace of sales. List to close fell to 66 days in May 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes averaged 14 days on market until sale compared to 17 days on market this time last year.
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: 6/22/2022