July 16, 2021
Contact: Kim Walker, 704-940-3149
Charlotte Region - Positive Home Sales Streak, New Listing Growth Continue in Tight Charlotte Market
CHARLOTTE, N.C. – Residential home sales across the Charlotte region continue to post positive gains. Slightly more than 5,500 homes sold during June 2021 than in the same month a year ago. The actual figure of 5,505 sales in June 2021 represents a 4.8 percent rise over home sales in June 2020.
Closed sales in June 2021 compared to May 2021 increased 15.1 percent, while year-to-date sales show the first half of 2021 pacing well ahead of the first half of 2020, when pandemic and safety concerns dampened sales. All of these figures are based on completed transactions for single-family homes, condos and townhomes across a 16-county region, according to data from Canopy MLS.
Pending contracts, which gauge buyer demand, were roughly on par with activity last June, down only 2 percent year-over-year as 5,653 properties went under contract during June 2021.
With pandemic lockdowns interrupting the rhythm of sales during the spring selling season last year, there was pent-up demand for homes once restrictions lifted, thus elevating demand over much of last summer.
Still, at midyear 2021, contract activity across the 16 counties continues to be healthy and positive, running 10.6 percent ahead of midyear 2020 with 30,823 properties under contract during the first half of 2021.
Seller confidence, as displayed by new listing activity, rose again in June, marking the third consecutive month of year-over-year improvement in new listings. New listings rose 12 percent year-over-year in June as sellers listed 6,148 homes for sale, which in the short term, will help buyers with more choice.
But the increased listings do little to help improve the current inventory situation in the region because of high buyer demand. Inventory had fallen at report time by 51.8 percent year-over-year, to 3,462 homes for sale, or 0.7 months of supply (approximately 21 days).
2021 Canopy Realtor® Association/Canopy MLS President David Kennedy said, “Even as inventory challenges persist, positive sales continue to point to the overall health of our housing market, especially with the continued growth in new listing activity,” he said. “Buyer demand shows us that Charlotte continues to be a popular destination for new residents, reinforcing that affordability and accessibility to housing across the region is a real concern and remains a top priority for Charlotte leadership.”
In further June 2021 data, the median sales price ($335,000) and the average sales price ($406,176) rose 18.4 percent and 21.9 percent year-over-year respectively. The National Association of Realtors® recently noted that the median sales price is being skewed upward due to an unusual amount of upper-end home sales and does not represent the typical homeowner appreciation.
This phenomenon is also playing out in local data, which showed only 950 homes for sale at $250,000 or lower in June 2021 inventory. That was out of 3,462 active listings at report time. A deeper look at inventory of homes for sale by price range across the 16-county region showed: 645 homes for sale in the price range of $250,000 to $350,000, 790 homes for sale from $350,000 to $500,000, 766 homes for sale from $500,000 to $999,000 and 311 homes at $1 million or higher.
The average list price rose 14.4 percent year-over-year in June 2021 to $416,939, driving the original list price to sales price ratio to 102 percent during the month, showing sellers in the Charlotte region are receiving well over asking price for their homes.
“Steadily rising prices and access to affordable homeownership challenges many Charlotte residents, particularly workforce and first-time homebuyers,” Kennedy said. “Plus, lot and labor shortages and rising construction costs mean there is no quick and easy path to bring affordable housing to market. Industry leaders working with elected officials will need to think creatively about affordable solutions where it makes sense. This kind of complex housing market makes working with a Realtor® crucial for buyers at all price points.”
Also, in June 2021 data, days on market until sale continued to trend lower, with data showing properties on market an average of 13 days compared to 38 days on market in June 2020.
Canopy Realtor® Association provides monthly reports on residential real estate market activity for the Charlotte Metro region based on data from its subsidiary, Canopy MLS. The Charlotte Metro region, which this report is based on, consists of the following 16 counties: Alexander, Anson, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly and Union counties in North Carolina; and Chester, Chesterfield, Lancaster and York counties in South Carolina.
For more residential housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2021 Association/Canopy MLS President David Kennedy, please contact Kim Walker at 704-940-3149.
Original Publish Date: 7/16/2021