Hickory-Lenoir MSA home sales continue to decline in August, as buyers pull back from rising rates and prices
Sept. 28, 2022
CHARLOTTE, N.C. —The Catawba Valley Region's sales continued to feel the effects of rising rates, a slowing economy and tight supply of homes. The summer selling season, much like the spring, has seen a significant decrease in buying and selling activity. Year-to-date sales at midyear showed some life, as total closings during the first six months of the year were ahead of midyear 2021, by 5.1 percent with slightly more than 2,250 homes sold. Overall sales activity, including the number of contracts written and listing activity has been down compared to activity throughout the summer of 2021.
Housing statistics included in this report are completed transactions that include single-family and condo/townhomes only, according to data from Canopy MLS.
Sales across the four-county region were down 19.3 percent year-over-year, as 377 homes sold during the month of August 2022, compared to 467 homes sold in August 2021.
Pending sales or pending contracts, which typically are seen as a good gauge of future sales, as they tend to close within 30-45 days, were down 5.9 percent year-over-year, as 429 homes entered the pipeline of sales August 2022. Though buyer activity has been down this year, buyer interest is still strong, particularly in the affordable price ranges. Canopy MLS showings report, which tracks the number of showings that active listings are receiving in a given month, showed buyers are seeking affordability, as showing activity was strongest in the affordable price ranges.
For example, in Burke County, homes priced in the $200,000-$300,000 price range, had 8.1 shows (or potential buyers) per listing, an increase of 11 percent year-over-year, while active listings in Catawba County, priced between $100,000-$150,000 had 9.8 shows per listing, an increase of 13 percent compared to last year.
"A number of markets statewide and nationally are starting to experience gains in inventory and supply, as a result of less buyer competition, said Donna Austin, President of Catawba Valley Association of Realtors® and Realtor®/broker with Coldwell Banker Boyd & Hassel, Inc. “Our market may be moving in a similar direction as we saw months of supply and inventory increase in August in Catawba County and areas closer to Newton and Hickory. It’s still a seller’s market and buyers will need to be realistic as the market isn’t expected to have a dramatic shift, but rather slowly move towards equilibrium over the next year.”
New listing activity has also been weak throughout the year, year-to-date figures in August showed activity over the first eight months of the year down 2 percent when compared to the same period in 2021. New listing activity was down year-over-year as well, as sellers brought 489 homes to market during the month, about 20 less homes than listed in August 2021. Month-over-month new listings are up about 4 percent; it is these month-over-month gains in listings that will slowly help replenish supply.
Inventory at report time, showed 574 homes for sale, which is down only 2 percent when compared to inventory this time last year, while months of supply was unchanged compared to last year at 1.5 months.
Low inventory continues to pressure prices across the four-county region. Both the median sales price ($259,000) and the average sales price ($318,119) rose 15.1 percent and 9.1 percent respectively, while the average list price rose 23.8 percent year-over-year to $350,174. This brought the original list price to sales price measure down 1.1 percent to 98.5 percent this past August. Last August it was 99.6 percent, showing sellers receiving nearly all of asking prices. Days on market until sale showed homes still selling fairly quickly around the region, averaging 17 days on market until sale, which is unchanged compared to last year.
Austin continued, “Realtors® continue to monitor changes in the market, focusing on days on market and the list price to sales price ratio in particular; we are also focusing on the impact of rising interest rates, as it continues to sideline buyers and slow sales. Homebuying is still a solid investment and there are certainly deals to be made, considering that we’ve seen a 44 percent year-over-year increase in the number of price reductions on active listings across the Hickory-Lenoir MSA. This is definitely good news as buyers gain a bit of bargaining power.”
A closer look at sales across the four counties in August 2022
Alexander County closings declined 33.3 percent year-over-year in August, as 26 homes sold versus 39 sold this time last year. Contract activity seems to be picking up, rising 14.6 percent year-over-year in August as 31 homes went under contract compared to 27 under contract last year. New listing activity showed seller confidence still down, as sellers brought 34 homes to market, a decrease 17.1 percent year-over-year. Inventory at report time showed 34 homes for sale and 1.2 months of supply. This time last year there was 1.5 months of supply. Low supply will continue to pressure prices in the short term. Both the median sales price ($253,050) and the average sales price ($275,304) rose 12.5 percent and 15 percent year-over-year respectively, while the average list price rose 839 percent year-over-year to $288,682. This brought the original list price to sales price ratio to 98.7 percent while days on market until sale showed homes on market longer, increasing to 17 days on market this year, compared to 12 days on market in August 2021.
Burke County home sales increased 3.7 percent year-over-year as 84 homes sold versus 81 homes sold this time last year. Pending contract activity dipped 7.3 percent year-over-year as 89 homes went under contract versus 96 this time last year. New listings however remained stable at 102 homes in August 2022. Inventory at report time declined 10.9 percent year-over-year leaving 123 homes for sale or 1.5 months of supply. This time last year supply in Burke County hovered at 1.7 months of supply. Both the median sales price ($252,500) and average sales price ($311,113) increased by 26.3 percent and 11 percent year-over-year, respectively. The average list price also rose (+38.3%) to $367,723. This brought the original list price to sales price measure to 97.6 percent, a .3 percent increase in August 2022. This time last year the metric was 97.3 percent. Homes are still selling quickly, days on market decreased 18.2 percent in August 2022, showing homes averaging 18 days on market until sale compared to 22 days on market this time last year.
Caldwell County closed sales in August fell 17 percent year-over-year as 83 homes sold, just 17 homes less than the number sold in August 2021. Pending contract activity was up 16 percent year-over-year, which means that sales could be positive in September and October. There were 94 homes that went under contract during the month compared to 81 under contract this time last year. New listing activity showed sellers still willing to capitalize on the market. Sellers brought 96 new listings into active status; an increase of 11.6 percent year-over-year compared to 86 new listings in August 2021. Prices continued to increase due to tight inventory, which was down 6.9 percent year-over-year, showing 95 homes for sale at report time or 1.3 months of supply. This time last year Caldwell had 1.4 months of supply. Tight supply will pressure prices. Both the median sales price ($236,000) and the average sales price ($270,720) rose 12.4 percent and 6.3 percent year-over-year respectively, while the average list price increased 26.7 percent to $295,386. This brought the original list price to sales price measure to down a percentage point to 99.2 percent. Homes continue to sell quickly, averaging 17 days on market until sales in August 2022 compared to 19 days in August 2021.
Catawba County home sales declined 25.5 percent year-over-year as 184 homes sold compared to 247 that sold in August 2021. Contract activity continued to slide, falling 147 percent as 215 homes went under contract versus 252 that were under contract in August 2021. New listing activity showed sellers brought 257 homes to market, an increase of 8.5 percent year-over-year compared to 281 homes listed for sale in August 2021. Inventory at report time increased 7.7 percent year-over-year and showed 322 homes for sale or 1.6 months of supply. This time last year supply had dropped to 1.5 months. Still, prices are rising. Both the median sales price ($275,800) and the average sales price ($348,748) rose 12.6 percent and 9.5 percent year-over-year respectively, while the average list price rose 21.2 percent to $371.723. The original list price to sales price ratio slipped nearly 2 percent from 100.4 percent to 98.6 percent. This still shows sellers in control of the market and receiving nearly all of asking prices, however this metric also shows that trends are shifting a bit in buyers favor. Days on market until sale is unchanged compared to last year, showing homes are still selling quickly, averaging 16 days on market until sale.
For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2022 Association/Canopy MLS President Lee Allen, Realtor®/Broker-in-charge with RE/MAX Executive, please contact Kim Walker.
The Canopy Realtor® Association is a trade association that provides its more than 16,000 Realtor® members with the resources and services they need to conduct ethical, professional, successful and profitable businesses. The Association is dedicated to being the region's primary resource for residential real estate information. The Association operates Canopy MLS, which has more than 21,000 subscribers and is the private cooperative Realtors® use for access to tens of thousands of residential listings in a 16-county service area, including Charlotte, 13 counties in the mountains of North Carolina as well as the Rock Hill area of South Carolina.
Original Publish Date: 9/28/2022