On the housing hunt? Charlotte’s red-hot real estate market explained in four charts
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Housing in Charlotte
A closer look at the real estate market, affordability and advice for buyers.
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Editor’s note: this story has been updated to include June data from Canopy Realtor Association.
It’s no secret that it’s tough out there if you’re trying to buy a house in the Charlotte area right now.
But how tough is it?
Low interest rates, a dwindling inventory and increased construction costs put a crunch on housing supply, resulting in homes being bought up faster and for more money.
There’s also a pent-up demand after more than a year spent inside during the pandemic, and even more Millennials exploring home ownership, said James McDuffie, community lending manager for U.S. Bank’s Mid-Atlantic region.
“It’s truly a seller’s market, but the market right now has never been higher,” he said. “I’ve been in the business for quite a number of years now. I’ve seen ups and downs, but right now is definitely a plateau that the market has hit that I don’t think we’ve ever seen before.”
Key metrics in Canopy Realtor Association’s monthly housing reports show why Charlotte’s market is so competitive:
Charlotte home prices
It’s hard to pay attention to much else before talking about price.
Throughout 2019, the median home sale price in the Charlotte metro area hovered around $260,000 to $270,000, according to Canopy’s report of MLS real estate data.
Prices rose steadily in 2020.
The median sales price crossed the $300,000 threshold this year in February, and was more than $340,000 in June.
“Sellers are getting, if not over asking price, they’re getting top dollar for their homes,” said Kristena Johnson, a Charlotte-area real estate agent.
Housing inventory
Fewer houses on the market mean more competition among buyers to snap up what’s out there. Supply has dwindled steadily throughout the pandemic.
In June there were only 2,705 homes available for sale in the Charlotte metro area, a 10-county region covering North Carolina and South Carolina. That’s a more than 45% decrease from June 2020, and a more than 68% decrease from June 2019.
But inventory does appear to be climbing back since its recent low in March, when only 2,141 homes were available on the market.
Fewer homes available can squeeze out buyers who have less financial resources, including first-time home buyers and those looking for more affordable homes.
Charlotte isn’t alone. A report released last month by National Association of Realtors said “the state of America’s housing stock… is dire, with a chronic shortage of affordable and available homes [needed to support] the nation’s population.”
Days on the market
With fewer homes out there, time on the market shrinks.
Homes sold in 12 days on average in June, three times as fast as June 2020.
Inventory supply
One measure of an area’s housing market is months supply of inventory, a measure of how fast available homes would sell on the market at the current pace.
The Charlotte area dipped below one month’s supply for the first time in November and in June was just 18 days.
It’s considered a balanced market when there’s about a six-month supply.
This story was originally published July 9, 2021 at 6:00 AM.
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