Charlotte housing affordability remains challenging, but a growing townhome and condo market presents buyers with opportunities for homeownership
July 18, 2024
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Home sales across the 16-county Charlotte region declined in June, falling 18.4 percent year-over-year as 3,635 homes sold, compared to 4,452 homes sold in June 2023. Sales compared to May also declined by 9.9 percent, as buyers pulled back from mortgage rates that remained elevated throughout the month of June, further challenging affordability. Though sales were down overall throughout the region and MSA, several areas had more sales activity than last June, which included: Anson County (18.2%), Belmont (2.2%), Gastonia (12.3%), Huntersville (15.7%), and Matthews (4.2%). Canopy MLS sales included in this report represent single-family, condos, and townhomes.
Pending contract activity which signals buyer demand rose in June by 7.6 percent year-over-year as 4,127 homes went under contract, which was nearly 300 more contracts written than in June 2023. Looking month-to-month, contract activity was nearly in line with May, rising 1.4 percent. Buyer interest in June, was highest in Matthews, where listings averaged 7.1 showings or potential buyers per listing, followed by Huntersville (6.3 showings per listing), Concord and Waxhaw (6.1 showings per listing), and Kannapolis (6 showings per listing).
Charisma Southerland, 2024 president of Canopy Realtor® Association/Canopy MLS and Realtor®/broker with Allen Tate Company said, “Even though overall sales activity during the first half of the year was lower than previous years, the Charlotte market is moving towards normalization and is healthier, than previous years. Steady listing activity continues to impact inventory and will eventually help to ease price growth, leading to the possibility of more sales activity in the second half of the year, especially if mortgage rates move lower.”
Seller confidence remained strong throughout the region, as new listings in June rose 11.8 percent to 5,271 homes listed for sale compared to slightly more than 4,700 homes listed in June 2023. June listing activity is down 3.3 percent, however, when compared to May 2024. The steady growth in listings has continued to boost inventory which rose by 39.7 percent in June to nearly 8,000 active listings at report time, which is the same level of inventory the region had in April 2020, at the start of the pandemic. In June 2023 there were only 5,700 active listings in inventory. Supply also increased by 43.8 percent year-over-year to 2.3 months of supply, up from 1.6 months of supply a year ago.
A closer look at inventory continues to show more mid-priced homes entering the market. Growth in single-family home inventory continued to rise, but not at the rate of the condo-townhome market. Single-family inventory increased 35.8 percent year-over-year in June, while condo inventory increased by 80.6 percent year-over-year and townhome inventory increased by 57.6 percent compared to last year.
Southerland added, “First-time buyers searching for homes in the region should be able to find more opportunities for a starter home in Charlotte’s growing townhome market. The inventory of townhomes priced from $200K-$300K grew in June by 158 percent, in fact all price points for condos and townhomes had a substantial rise in listings in the last few months, which is good news for buyers seeking affordability.”
Prices rose modestly in June, amidst rising buyer demand. The median sales price for a home in the region rose 5.4 percent year-over-year to $409,225, while the average sales price increased 7.9 percent to $523,813; month-over-month both indices were only up by 2.3 percent and 0.2 percent respectively. The average list price in June rose 9.5 percent to $537,519 bringing the average list price to sales price measure down less than a percent to 97.6 percent, still a strong signal for sellers to list.
Time on market was relatively unchanged compared to last June, with the average number of days a property was on the market from the time it was listed until close (List to Close), at 77 days compared to 81 days in June 2023, while the “Days on Market” metric, which accounts for both “Active” and “Under-contract-show” statuses, indicates homes averaged 31 days on market before selling which is one day more than June 2023, when homes averaged 30 days on market until sale throughout the region.
Mecklenburg County home sales in June were similar to the region, with sales during the month falling 19.6 percent compared to last June 2023, as 1,325 homes sold during the month. Month-over-month sales compared to May 2024 were down 11.7 percent. Buyer demand or contract activity rose by 6.9 percent year-over-year to 1,458 homes under contract during the month, with 94 more contracts written than in June 2023. New listings increased by 5.3 percent as sellers added a little over 1,800 new listings to Mecklenburg County’s inventory pool. Listing activity boosted inventory and supply by 42.7 percent and 53.8 percent respectively, bringing Mecklenburg’s inventory to 2,451 homes for sale or two months of supply at report time.
With demand steady and inventory tight, prices in Mecklenburg County rose. Both the median sales price ($480,000) and the average sales price ($638,443) increased by 6.4 percent and 9.9 percent, respectively. The median sales price in June 2024 was the highest on record for Mecklenburg County to date, and was 33.3 percent higher than the median sales price at the height of the pandemic (June 2021: Mecklenburg County, median sales price $360,000). The average list price in Mecklenburg County rose 9.5 percent year-over-year to $635,930 bringing the original list price to sales price measure down a percentage point to 98.6 percent in June 2024.
“Without a doubt, Charlotte’s housing market remains a challenge, especially for buyers seeking to live in Mecklenburg County or the city, said Southerland. But working with a Realtor® who understands all the nuances of the market, not only helps sellers list their homes at prices that are in line with the market, but also helps to set expectations for buyers while also ensuring access to resources, like the Down Payment Resource tool, where nearly 80 percent of Canopy MLS listings qualify for some type of down payment assistance, helping to offset prices a bit.”
Days on market showed homes in Mecklenburg spent less time on market than across the region this past June, averaging 25 days on market until sale compared to 24 days on market in June 2023.
Closed sales in the city of Charlotte declined by 18.8 percent year-over-year, as 1,063 homes sold compared to slightly more than 1,300 that sold in June 2023. Compared to May 2024 sales were down by 10.4 percent. Contract activity, which points to buyer demand, increased by 6.7 percent year-over-year as 1,161 homes went under contract during the month compared to 1,088 in June 2023. New listing activity rose by a modest 3.2 percent as sellers brought 1,432 new listings to market during the month. Inventory at report time showed slightly more than 2,000 homes for sale, an increase of 45.2 percent compared to last year. Currently the city has two months of supply compared to 1.3 months of supply in June 2023. Both the median sales price ($450,500) and the average sales price ($624,193) rose by 4.8 percent and 8.1 percent year-over-year respectively, while the average list price increased by 7.2 percent to $624,193. This brought the original list price to sales price measure down a percent to 98.7 percent, while homes averaged 25 days on market until sale compared to 23 days on market at midyear 2023.
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 (Alexander, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly, and Union) and four counties in South Carolina (Chester, Chesterfield, Lancaster and York).
For more residential housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2024 Association/Canopy MLS President Charisma Southerland, Realtor®/Broker with Allen Tate Company, 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: 7/18/2024