Higher mortgage rates and tight inventory continue to impact sales and listing activity

July 19, 2023

Kim Walker, 704-940-3149

CHARLOTTE, N.C. — The Charlotte Region’s home sales in June declined 22.1 percent year-over-year, as 4,161 homes sold compared to the more than 5,300 homes that sold in June 2022. Sales are much cooler than usual for this time of year due to the combination of low inventory and higher borrowing costs, which have dampened market activity over much of the spring and at midyear. Sales were up 4.4 percent compared to May 2023.

Data from Canopy MLS, showed closed sales up year-over-year in Lincoln County (9.0%), with sales up in Denver, (31.7%) and Lincolnton (13.5%) in particular. Chester Co., South Carolina (65.2%) also had positive year-over-year closings in June.  Sales included in this report are for single-family, condo and townhome sales only.

Though contract activity or pending sales were up year-over-year in a number of areas and counties (Anson, Cabarrus, Cleveland, Gaston, Iredell, Chester, York, Tega Cay, Fort Mill, Kannapolis and Lake Norman), contract activity across the region in June was still depressed, falling 6.2 percent year-over-year as 4,055 homes went under contract compared to 4,323 during the same period last year. Pending contracts or sales were down 6.3 percent compared to activity in May. 

New listing activity, which was mostly unchanged compared to the month of May 2023 (1.9%), declined 28.6 percent year-over-year, as sellers listed 4,655 homes for sale. This time last June, sellers brought just under 6,500 listings to the market, which helped inventory and supply to slowly ramp up. New listing activity, which increased year-over-year only during the months of May and June 2022, has been down year-over-year in 2023. And sharp year-over-year declines each month since April 2023, along with steady buyer activity this spring, has chipped away at earlier inventory gains.

The region’s inventory at report time, was down 17.2 percent compared to inventory in June 2022, with 4,963 homes for sale. At report time in June 2022, there were nearly 6,000 homes for sale. The region currently has 1.4 months of supply compared to 1.3 months in June 2022, signaling a strong sellers’ market.  The region’s inventory has steadily risen each month since June 2022, but June 2023 marked the first month that inventory has declined, which will impact prices.  

“Inventory and supply along with higher mortgage rates, strongly impact home sales,  and our region’s tight inventory remains a challenge for buyers,” said Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive. “Sellers still control the market and we can see that, as sellers received nearly all of asking prices for their homes this past month; however, the lack of seller activity reflects sellers unwillingness to take on higher mortgage rates, since listing their homes, means they too become buyers.”

The region’s median sales price in June ($389,900) declined 2.5 percent compared to last year, but is up slightly, 1.3 percent month-over-month. Even though June represents the fifth month of year-over-year declines in the median sales price, those declines have been by a few percentage points, which means prices are holding steady.  However, the median price is still rising year-to-date in the following areas: Tega Cay, SC (+6.6%), Waxhaw (+8.3%), Matthews (+8.9%), Huntersville (+10.7%), Denver (+7.5%), Mecklenburg (+3.2%), Union (+2.7%), and Lancaster (+1.2%). Prices in these areas reflected sharp declines in inventory in June, forcing prices higher.  The region’s average sales price in June ($487,755) increased 2.9 percent year-over-year and 0.9 percent compared to May’s average sales price.

The average list price increased 3.9 percent to $498,215 which brought the original list price to sales price measure to 98.5 percent compared to 101.9 percent in June 2022.

Johannes continued, “Gains in supply, especially existing-homes are crucial to our market becoming healthier; tight inventory and the lack of affordability due to increased rates, could impact recruiting for economic development and keep a number of buyers, particularly work-force buyers sidelined, or commuting longer distances.”

Homes are on market longer than last year, but are still selling fairly quickly throughout the region. List to close increased 14.3 percent to 80 days compared to 70 days in June 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes sold quickly in June and averaged 29 days on market until sale compared to 14 days on market until sale, a 107.1 percent increase when compared to time on market in June 2022, which is also faster than in May 2023, when homes averaged 34 days on market until sale.

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: 7/19/2023