Below is a quick update on the Charlotte Real Estate Market through August 2022.  You can always search available homes at www.CLTREA.com and if you have any questions, please do not hesitate to contact me!  

Comparing August 2021 and August 2022, Pending Sales in the Charlotte Region are down 18% percent overall.  While that number is alarming, the average sales price of homes is 16.9% higher than the same time last year.   In fact, the yearly statistics show 2022 increased average sales price 16.3% over 2021.  

To me, the most interesting statistic was in August 2022 homes closed at 98.5% of the original list price versus 101.5% in August 2021.  The bidding wars have calmed down significantly and only in certain price ranges are multiple offers a regular occurrence.  

One last bit of data I pulled from ShowingTime shows that buyer demand may be creeping back up.  While total Showings were down an average of 29% in May, June, and July 2022 vs 2021, August 2022 was only down 6% vs 2021.  August is traditionally one of the slowest months, but showings exceeded even June's levels in 2022.  It will be interesting to see how September and October showings play out.

Looking For New Construction?

For Buyers in the market for New Construction, this may be a very good time to shop.  Many builders are offering significant incentives including buying down interest rates, paying closing costs, or traditional price drops to entice buyers.  Please do not hesitate to ask if you would like some additional information on New Construction Opportunities.  

August 2022 Reviews

The current market is being shaped by a spike in mortgage rates, increased building costs, and extremely low inventory that continues to drive prices higher in the Charlotte Region.  For the 12- month period spanning June 2021 through May 2022, Pending Sales in the Charlotte region were down 3.8 percent overall. The price range with the largest gain in sales was the $300,001 and Above range, where they increased 20.2 percent.

For a deeper look at the housing market and beyond, I highly recomend reading this FORBES article titled:  Will the Housing Market Crash?  I think it does a great job explaining the current situation across the country.

Search all available homes on the MLS in the Charlotte Region at www.CLTREA.com.  If you see anything you would like to see in person, I would be thrilled to help.

Below are the updated statistics for Charlotte and the Surrounding Areas through the end of February 2022.  With inventory levels still low Charlotte continues to see an extremely strong Seller's market.

For the 12-month period spanning March 2021 through February 2022, Pending Sales in the Charlotte region were up 2.7 percent overall. The price range with the largest gain in sales was the $300,001 and above range, where they increased 27.9 percent.

The overall Median Sales Price was up 17.5 percent to $335,000. The property type with the largest price gain was the Single-Family segment, where prices increased 18.1 percent to $348,540. The price range that tended to sell the quickest was the $200,001 to $300,000 range at 13 days.

Market-wide, inventory levels were down 45.9 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 42.5 percent. That amounts to 0.5 months supply for Single-Family homes and 0.4 months supply for Condos-Townhomes.

With a shortage of existing homes for sale, many prospective buyers are turning to new construction for their next home purchase. 

If you have any questions, please feel free to contact me at your convenience!

The US inflation at its highest level in nearly 40 years.  Economists expect the actions taken by the Federal Reserve to combat inflation will move mortgage interest rates higher through the end of 2022. Although still low by historical standards, an increase in interest rates may reduce buyer demand as affordability becomes a more influential factor in home purchases.  Less demand would likely be healthy for the Real Estate Market as Demand in this Seller's market has been extreme.

A great example of how this rate change will change affordability is available below thanks to https://www.mortgagecalculator.org/:

- A buyer purchasing a home at $300,000 with a 3% interest rate with 20% down and the standard tax/home insurance rates provided would have an estimated Total Monthly Payment of $1,295.18

- At 3.5% the Total Monthly Payment is $1,361.04  ($65.86 increase over 3%)

- At 4.0% the Total Monthly Payment is $1,429.13  ($133.95 increase over 3%)

These increases get more dramatic with higher price point homes.

If you are looking to buy a home in the next 12 months, this may be a great time to take your search to the next level. 

Please let me know how I can be of assitance. I would love to help with your Real Estate Purchase.

Feel free to search for homes in the Charlotte Metro and Surrounding Areas at our Website at www.CLTREA.com