August 15, 2023
Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Charlotte region’s home sales continued to trend down in July, falling 20.7 percent year-over-year as 3,467 homes sold across the region compared to 4,371 that sold in July a year ago. July’s sales compared to the previous month were down 16.7 percent, as buyer and seller activity continue to be much lower than previous summers, when families are most likely to move. In fact, closings in July 2023 retreated to the level of units sold in July 2013 (3,400 closings), which marked the year that Charlotte’s housing market started to recover from the Great Recession of 2008.
Data from Canopy MLS, showed a few areas around the region still experiencing positive, year-over-year closed sales in July: Iredell County. (+1.8%), Montgomery County (+24%), Kannapolis (+24.6%) and Lake Norman (+2.5%). Sales included in this report are for single-family, condo, and townhome sales only.
Pending contracts, which typically signal future sales, and buyer demand continued to be weaker, falling 6.8 percent compared to last year, as 3,877 homes went under contract during the month. Contract activity compared to June was down 4.3 percent as buyers still seeking homes in the region continue to navigate higher mortgage rates, tight inventory and higher prices. Contract activity did increase year-over-year in a few areas, mostly in the outlying or rural areas within the region. July Showings Report indicated that buyer interest was highest in Matthews with 8.6 showings per listing; Kannapolis, Waxhaw and Fort Mill, each with 8.1 showings per listing; followed by the City of Charlotte and Concord, each with 7.7 showings per listing. Showings are a strong indicator of foot traffic and represent buyer interest.
Seller confidence, as indicated by new listing activity continues to be down, falling substantially, 30.2 percent year-over-year as sellers listed 4,186 homes for sale. New listing activity over time helps to increase inventory and supply. Without consistent new listing activity, inventory will continue to be tight and will apply upward pressure on prices, causing them to increase. Month-over-month new listings were down 10 percent.
“Certainly, sales activity this past summer has been much lower than previous years, but buyers are still in the market for homes, and granted sales could have been much stronger had there been more inventory.” said Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive. “And despite the 30-year fixed mortgage rate at 7 percent in July, buyer activity remains steady and even competitive in a number of areas. However, sellers, especially those who purchased in recent years at record low- interest rates, have little incentive to move. Unfortunately, these factors are creating the perfect affordability storm and may sideline a number of first-time and workforce housing buyers.”
The region’s inventory in July declined 30 percent year-over-year at report time to 5,005 homes for sale compared to a little more than 7,100 homes for sale during the same period a year ago. Supply has also retreaded, falling 12.5 percent to 1.4 months compared to 1.6 months of supply in July 2022.
All price indices rose modestly in July. Both the median sales price ($392,250) and the average sales price ($476,645) increased 1.9 percent and 4 percent year-over-year. Month-over-month, prices held steady, with the median sales price up 0.8 percent and the average sales price down 2.2 percent compared to June. The average list price increased 6.5 percent to $493,537, which brought the original list price to sales price measure down two percent to 98.3 percent during the month of July. Last July sellers in the region received on average a little over asking price (100.3 percent) for their homes.
Johannes continued, “Prices rose throughout the region this month, in particular here in the City of Charlotte and Mecklenburg County. The boost this month in home prices in a number of areas like Cornelius, Mooresville, Huntersville, and Waxhaw, continues to have a positive effect on home equity for homeowners. Steady demand, however will continue to create a very competitive and challenging market for buyers. This past month’s sales could be an indication that our market is at or near bottom but the main challenge of our time is inventory.”
The time homes spent on market continued to increase in July. List to close increased 6.9 percent to 77 days compared to 72 days in July 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes averaged 29 days on market until sale compared to 15 days on market until sale, a 93.3 percent increase when compared to time on market in July 2022.
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: 8/15/2023