The latest numbers on Charlotte, NC homes seem to echo the same unyielding trends we’ve been reporting on for some time: slim inventory, rising prices, and limited options for homebuyers. However, we’re seeing strong hints that change is coming.
The latest numbers indicate that homebuilders are responding to continued consumer demand. As of April 30, the number of new listings increased by .7%. However, the inventory of homes for sale had fallen yet again from a year previously, this time by 2,493 homes. That’s a decrease of 22.6% from April, 2017, offering a hungry market only 8,515 homes. This left potential homebuyers with only a 2.1 months supply of homes for sale, a drop of 25% from last year. This continuing and mostly unfulfilled demand for Charlotte homes nudged the median sales price by $16,502, an increase of 7.4%. However, one sign that the steamroller of surging home prices may be losing a little of its steam is the modest increase in the percentage of original price received from 97.2% last April to its present level of 97.4%, a gain of only .2%.
One factor strongly suggesting coming changes in the Charlotte real estate market is Charlotte’s long-term economic vitality. Wages and consumer spending are up, strong positive indicators for the housing market. Our continued robust economy should assure builders and lenders that building new homes is a sound money-making proposition. The persistent demand for homes by buyers who have been hanging in there despite an overwhelming seller’s market testifies to growing consumer confidence.
Also, both buyers and their agents have learned how to cope with current realities. The miniscule rise in the percentage of original price received suggests that homebuyers and their agents are finding new strategies for bargaining with sellers. Mortgage rate increases, once nearly unthinkable, are one of the new realities we must all adapt to, adding more complexity to the market. Those who don’t – or can’t – adapt will be left behind.