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Accommodation in Charlotte
A closer look at the real estate market, accessibility and advice to buyers.
It’s no secret that it is difficult to buy a house in the Charlotte area right now.
But how difficult is it?
Low interest rates, dwindling stock and increased construction costs led to a reduction in the supply of housing, as a result of which houses are sold out faster and for more money.
There is also pent-up demand after more than a year spent indoors during the pandemic, and even more Millennials are exploring home ownership, according to James McDuffie, Community Lending Manager for the Mid-Atlantic Region of US Bank.
“This is indeed a seller’s market, but the market has never been higher now,” he said. “I’ve been in this business for quite a few years now. I’ve seen ups and downs, but right now the market has definitely hit a plateau that I think we’ve never seen before. “
Key indicators in Canopy Realtor Association’s monthly housing reports show why the Charlotte market is so competitive:
Housing prices in Charlotte
Before talking about the price, it is difficult to pay attention to anything else.
During 2019, the average home sale price in the Charlotte Metro area ranged from $ 260,000 to $ 270,000, according to a Canopy report on MLS real estate data.
Prices rose steadily in 2020.
The median selling price exceeded the $ 300,000 threshold in February this year and stood at $ 330,000 in May.
“Sellers get, if they don’t exceed the asking price, they get a lot of money for their homes,” said Kristena Johnson, a Charlotte-based real estate agent.
Fewer homes on the market means more competition among buyers for what is on the market. Supply declined steadily throughout the pandemic.
In May, there were just 2,427 homes available for sale in the Charlotte metro area, a region with 10 counties spanning North Carolina and South Carolina. This is almost 55% less than in May 2020 and almost 72% less than in May 2019.
Fewer affordable homes can crowd out buyers with fewer financial resources, including first-time home buyers and those looking for more affordable homes.
Charlotte is not alone. A report released last month by the National Association of Realtors said that “America’s housing stock is … dire, with chronic lack of affordable and affordable housing [needed to support] population of the country “.
Days on the market
With fewer homes, the time on the market is reduced
Homes in May are sold on average in 16 days, more than double the rate of May 2020.
Supply of inventory
One measure of the housing market in an area is the monthly stock, a measure of how quickly existing homes will sell on the market at the current rate.
In the Charlotte area, for the first time in November, there was a drop in supply below the monthly level, and in May there were only 18 days.
It is considered a balanced market when there is a six month supply.