Rising mortgage rates and deteriorating economic conditions impact sales across the Catawba Valley region in May
June 28, 2022
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. – The Catawba Valley Region had 388 closed sales in May, a slight decline of 6.1 percent year-over-year compared to 413 sold homes in May 2021. Month-over-month sales also declined, with 38 fewer homes sold in May than in April, an 8.9 percent difference. Like other markets across the country, rising mortgage rates, frustratingly tight supply and worsening economic conditions may have started to impact demand and sales in the four-county region this May.
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 declined 2.3 percent year-over-year in May 2022, as buyers drove 432 homes under contract during the month compared to last May, when 442 homes were under contract. However, Month-over-month contract activity rose 5.1 percent from 411 homes under contract in April to 432 in May.
"Our market has held strong over the past few months despite national trends that have caused other markets to slow, said Donna Austin, President of Catawba Valley Association of Realtors® and Realtor®/broker with Coldwell Banker Boyd & Hassel, Inc. “However, rising mortgage rates and uncertain economic conditions have started to impact buyer demand within the region, resulting in more calculated purchasing decisions. But slower sales in the region will also allow inventory to slowly ramp up, as we have seen nationally, which ultimately benefits both buyers and sellers.”
May's new listing activity in the region was nearly proportionate to last year, with 518 homes listed this May compared to 517, a 0.2 percent year-over-year increase. Month-over-month new listings rose by 13.8 percent to 518 homes listed versus 455 in April 2022. Increased new listings may indicate that sellers are in a rush to list their homes before buyer demand declines.
The months' supply of inventory continued to decrease year-over-year, leaving the region with approximately 27 days of supply at report time in May, compared to 39 days or 1.3 months last year. However, new listing activity has allowed months of supply to improve from 24 days in April to 27 days of supply in May.
Catawba Valleys Inventory of homes also decreased year-over-year, with 480 homes on the market last year and 377 this May. However, the supply of inventory month-over-month improved by 20.8 percent to 377 homes this May, from 312 in April 2022.
Year-over-year median sales price ($250,200) and average sales price ($310,051) increased by 13.7 percent and 14.9 percent, respectively. The average list price in the four-county region was $366,127 in May, a 27 percent increase compared to last year. The percent of original list price to sales price received measure increased 100.3 percent in May 2022, indicating sellers received all of asking price and more last month.
Austin continued, “Even as sales slow, buyers will continue to find themselves in a strong seller’s market with sellers receiving all of asking prices for their homes, as indicated by the percent of original list price received this past May, reaching 100.3 percent. However, sellers will also need to understand that pricing the home well, down to the neighborhood level, is key to having the home sell quickly and for top value.”
A closer look at sales across the four counties in May 2022
Alexander County experienced stable sales compared to last year, with 31 closed this May compared to 30 sold in May 2021, a 3.3 percent increase year-over-year. Pending sales increased 14.8 percent year-over-year, with 31 homes under contract this May versus 27. New listings increased by 10.3 percent from 39 homes last May to 43 this year. However, the month's supply of inventory declined 9.1 percent, leaving one month of inventory available compared to 1.1 months of supply last May. Inventory of homes declined 6.1 percent year-over-year, from 33 homes available versus 31 in May 2022. Prices were mixed. The median sales price ($238,500) increased 19.5 percent from $199,500 last year. However, the average sales price ($266,193) declined 14 percent from $309,533 last year. On average, sellers received 100 percent of their original asking price this May, a 1.7 percent increase compared to May 2021. The amount of days homes spent on the market decreased by 48.1 percent in May 2022, with homes spending approximately 14 days on market compared to 27 days on the market in May 2021.
Burke County home sales increased 23.7 percent year-over-year, with 94 homes sold in May 2022 compared to 76 sold in the same period last year. Pending sales experienced a slight bump up of 3.5 percent year-over-year as 88 homes went under contract in May 2022 versus 85 this time last year. However, new listings declined 5.1 percent from 98 new listings in May 2021, to 93 this past May. The month’s supply of inventory decreased by 40 percent to 0.9 month’s supply or 27 days, compared to 1.5 months of supply this time last year. Additionally, the inventory of homes fell 33.6 percent year-over-year, leaving 73 homes for sale at report time versus 110 in May 2021. The median sales price ($249,000) and average sales price ($318,079) increased by 28.7 percent and 41.3 percent year-over-year, respectively. The percent of original list price received increased slightly, 1.7 percent to 100.3 percent. The amount of days homes spent on the market decreased 32.1 percent from 28 days on market to 19 days on market in May 2022.
Caldwell County closed sales declined by 23.1 percent year-over-year to 70 sales this May versus 91 closed sales in May 2021. Pending sales, however showed contract activity increased to 84 homes under contract from 71 in May 2021, an 18.3 percent increase year-over-year. New listings also increased year-over-year by 6.4 percent, as sellers brought 100 new listings to market in May, compared to 94 in May 2021. Months' supply of inventory dropped 23.1 percent to 1 month's supply available, compared to 1.3 last year. Inventory of homes for sale continued to decline, dropping 20.7 percent year-over-year, leaving 73 homes for sale at report time, versus 92 homes on market last May. The average sales price ($262,675) remained the same, while the median sales price ($240,000) increased by 5.5 percent year-over-year. The average list price however increased 38.3 percent year-over-year to $319,158. This brought the percent of original list price received measure down a bit to 98.3 percent, with sellers still getting close to all of asking price in Caldwell. Homes continued to sell quickly, averaging 16 days on the market in May 2022 compared to 21 days on market in May 2021.
Catawba County home sales decreased by 10.6 percent year-over-year as from 216 homes sold to 193 homes sold in May 2022. Pending sales also decreased in May by 11.6 percent year-over-year as 229 homes went under contract compared to from 259 in May 2021. New listing activity declined slightly by 1.4 percent to 282 homes listed compared to 286 new listings in May 2021. Months supply of inventory continued to decline and showed one month of supply, versus 1.3 months of supply in May 2021. The inventory of homes for sale also saw a decline this May, from 245 homes on the market last year to 200 in May 2021, an 18.4 percent year-over-year difference. Median sales price ($263,500) and average sales price ($330,368) increased by 17.1 percent and 16.8 percent year-over-year, respectively. Percent of original list price received increased by 1.1 percent to 101 percent overall. On average, homes spent 17 days on the market this May compared to 18, a 5.6 percent decrease year-over-year.
Canopy MLS is a wholly-owned subsidiary corporation of Canopy Realtor® Association and is the private broker cooperative used by Realtors® to bring buyers and sellers together with access to thousands of residential listings in a multicounty service area, including Charlotte, Asheville and Catawba Valley regions spanning across North Carolina, South Carolina and outside of the Carolinas. Canopy MLS, which has 21,000 subscribers, provides the most trustworthy, timely, accurate and complete property data along with proprietary tools for showings, market stats, predictive analytics, and more. Canopy MLS is used by its members to support consumers in their residential real estate transactions, whether selling, buying, investing or renting.
Original Publish Date: 6/28/2022