August 24, 2023
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Canopy MLS reports on residential sales trends in the contiguous counties to Mecklenburg County, which includes York, Lancaster, Chester, and Chesterfield, South Carolina. Data included in this report is for single family, condo, and townhome property types only, for the geographies mentioned above.
In July, sales within the four rapidly growing counties located just south of the Charlotte Region experienced a decline in home sales of 23.9 percent in comparison to the same period in the previous year. A total of 533 homes were closed during the month, contrasting with the 700 homes that were closed in July 2022. On a month-to-month basis, sales showed a decrease of 12.5 percent compared to the month of June. This decline is attributed to the ongoing challenges faced by buyers in dealing with limited housing supply and elevated mortgage rates.
The pending contract activity revealed a relatively moderate decrease in buyer demand, with a decline of 4.3 percent year-over-year. Data showed 596 homes entered into contract status during the month, as opposed to 623 homes under contract during the corresponding period. Month-over-month, pending contracts experienced a decrease of 6.7 percent, representing a reduction of 43 units. This decline aligns with expectations, given that the summer season typically witnesses fewer closings in a standard year.
In July, there was a decrease in new listings of 25.2 percent as 655 homes were introduced to the market. In contrast, July 2022 saw 876 new listings. When comparing to the previous month of June, new listing activity experienced a reduction of 4.2 percent, equating to 29 fewer homes being listed. Over the past four months, there has been a consistent year-over-year decline of around 25 percent in new listing activity. This trend can be attributed to the relatively stagnant, but higher mortgage rate environment. Despite ongoing demand within the four-county region, sellers appear to be hesitant in listing their properties, resulting in a constrained housing supply.
“Given that a significant portion of homeowners are currently experiencing interest rates below 5 percent, Realtors® are finding innovative ways to connect buyers with lending solutions aimed to alleviate concerns tied to higher mortgage rates” said Jerrianne Jackson, President of Piedmont Regional Association of Realtors® and a Realtor®/Broker with Blu J Agency, Rock Hill, South Carolina. “While people are still moving, it's primarily driven by unavoidable factors like job relocation or downsizing. However, the market is not seeing as many sellers willing to become move-up buyers and upgrading to larger homes with more features, largely because of higher rates. If interest rates fall to 5 percent again, I believe we will see a strong uptick in selling and buying in our area.”
At report time in July, inventory declined 32.4 percent leaving 712 homes for sale or 1.3 months of supply. This time last year there were 894 homes for sale. Supply is unchanged compared to June 2023.
For the first time since January, the median sales price increased by 4.9 percent year-over-year to reach $399,000. Similarly, the average sales price, which stands at $439,537, witnessed its first uptick in 4 months, reflecting a 4.2 percent year-over-year growth.
When considering year-to-date price figures, prices are holding steady, with the median sales price at $374,073; displaying a slight decline of 0.2 percent, and the average sales price at $415,530, an increase of 0.7 percent. The original list price to sales price metric continues to indicate that sellers in the four counties are obtaining almost the entirety of their asking price, with a rate of 99.2 percent. This demonstrates a 1 percent climb since the beginning of the year.
Jackson further added, "While home prices hold strong amidst record-high interest rates, the average home buyer is encountering growing challenges in locating affordable properties. Although new home builds contribute to expanding the supply, they are insufficient to match the prevailing market demand. Engaging the expertise of a Realtor® will be essential for many families to secure a new home in this market.”
Though the time homes spent on market continued to increase in buyer’s favor, homes are still selling quickly. Days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, rose 47.1 percent and showed homes averaged 25 days on market until sale compared to 17 days in July 2022.
A closer look at the four South Carolina counties in the Charlotte region:
Chester County homes sales decreased 6.3 percent to 30 homes sold compared to 32 sold in July 2022. However, there was a notable increase of 42.3 percent in pending contract activity, as 37 homes went under contract, compared to 26 in July 2022. Conversely, new listings experienced a decline of 10 percent, with 45 homes brought to the market during the month, compared to 50 newly listed in July 2022.
The inventory of homes for sale declined by 12 percent to 66 homes at the time of the report, equivalent to 2.2 months of supply. Over the past year, prices have shown a consistent upward trajectory. Both the median sales price ($273,450) and the average sales price ($254,708) increased by 22.1 percent and 2.5 percent year-over-year, respectively. Notably, the average list price surged by 54.4 percent to reach $321,965. As a result, the original list price to sales price measure climbed to 97.3 percent, marking a 3 percent increase compared to the previous year. Days on market indicated that homes took an average of 39 days until sale, compared to 35 days in July 2022. Buyer interest remained healthy, with an average of 4.3 showings per listing. (Due to small sample sizes, percentage of change may seem extreme)
Chesterfield County had six homes sold during the month compared to 16 in July 2022. Similarly, the contract activity displayed a decline, with five homes under contract in July, down from 14 in July of last year. New listings saw a 50 percent decrease year-over-year to eight listed from 16 homes the previous year. Despite this, the inventory increased to 25 homes available for sale at the time of the report, equivalent to a 3-month supply. Both the median sales price ($252,450) and the average sales price ($229,767) increased 5.5 percent and 2.1 percent year-over-year respectively, while the average list price jumped 51.7 percent to $362,375. This brought the original list price to sales price measure to 96 percent while homes were on market 25 days until sale in July 2023. The properties listed in Chesterfield had an average of 1.2 showings per home, indicating the level of interest in the market. (Due to small sample sizes, percentage of change may seem extreme)
Lancaster County observed a shift in its real estate dynamics in the recent month. With 156 homes sold, there was a drop of 21.2 percent in comparison to the previous year. Similarly, the contract activity experienced a 10 percent decline as 144 homes entered the pending stage during the month, down from 160 that were under contract in July 2022. New listing activity declined by 29.5 percent year-over-year as sellers brought 155 homes to market during the month compared to 220 that were newly listed a during July 2022. Inventory dropped 39.3 percent compared to last July and showed 179 homes for sale at report time or 1.3 months of supply. Prices declined while days on market increased providing some relief for buyers. Both the median sales price ($410,000) and the average sales price ($428,936) experienced a decline of 12 percent and 6.5 percent respectively, in a year-over-year comparison. while the average list price dropped 39.3 percent to $438,981. This brought the original list price to sales price measure to 98.3 percent as sellers still receive most of asking price, while days on market increased 115.4 percent to 28 days on market until sale compared to 13 days on market in July 2022. Lancaster listings saw an average of 5.5 showings per home listed in July.
York County witnessed a decline of 25 percent year-over-year, with a total of 336 homes sold, as opposed to 448 in July 2022. Similarly, contract activity exhibited a slight 1 percent year-over-year decrease, with 414 homes going under contract – four less than the figure for July 2022. New listings dropped 23.7 percent year-over-year as sellers brought 447 homes to market during the month compared to 586 in July 2022. In terms of inventory and supply, there were declines observed during the month. The inventory dropped by 33.7 percent compared to the previous year, leaving a total of 438 homes available for sale at the time of the report, which translates to a supply of 1.2 months. This supply level is down 20 percent from the previous year, potentially exerting pressure on prices in the forthcoming months. In July, prices increased while days on market decreased. Both the median sales price ($401,153) and the average sales price ($462,555) climbed by 6.3 percent and 8.4 percent year-over-year respectively, while the average list price also increased by 8.4 percent to $487,285. This brought the original list price to sales price measure to 98 percent during the month, a shift from 100.2 percent in July 2022. Days on the market slowed to 25, an increase of 53.3 percent over July last year. There was a good amount of foot traffic per listing during July with an average of 6.8 showings per listing, indicating a sustained level of interest in the market.
Canopy Realtor® Association provides monthly reports on residential real estate market activity for the Charlotte region based on data from Canopy MLS. This report is based on the four South Carolina counties that are also included in the Charlotte region (Chester, Chesterfield, Lancaster and York Counties).
For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with Jerrianne Jackson, President of Piedmont Regional Association of Realtors® and Realtor®/broker with Blu J Agency, 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: 8/25/2023