Home sales down nearly 28% in Charlotte region year-over-year
CHARLOTTE, N.C. (WBTV) - The demand for homes in the Charlotte region is on the decline and across a 16-county region according to Canopy Realtor Association data.
“Sales were down 27.8% year-over-year as 2,731 homes sold across the 16-county region. This time last year nearly a thousand more units sold in February 2022. Sales compared to the previous month (January 2023) were up 20.8%, reflecting buyers’ reaction to rates at the start of 2023, which fell below 6.5% during the second week of January,” according to Canopy.
The number of homes under contract and pending sales also dropped year-over-year by 8.3% but there are signs that people are still actively searching for homes.
“Though contract activity continues to be down, buyer interest and showing activity is steady. Showings across the Charlotte MSA were down year-over-year, but month-over-month activity for homes priced between $200K to $300K, averaged 9.5 showings (or potential buyers) per listing,” according to Canopy.
Inventory is also a challenge for the housing market with fewer homes on the market.
“New listings which tend to reflect seller confidence declined 18.3% year-over-year in February as sellers listed 3,417 homes for sale. Month-over-month new listing activity was up 7.3 percent. This is the second consecutive month-over-month rise which could have a small impact on inventory and buyer choice, should this activity continue building throughout the spring market,” according to Canopy.
The time of year plays a role in the housing market but Tiffany Johannes, 2023 president of Canopy Realtor Association/Canopy MLS said the trends are not what most would have expected.
“This year’s market has surprised both buyers and sellers. Sellers are finding that days on market are increasing as buyers’ buying power has been stripped by higher interest rates, causing buyers to take more time reaching a purchasing decision. The number of homes sold in February compared to last February has fallen nearly 28 percent, while inventory increased to about 4,700 homes or 1.2 months of supply. The uncertainty of interest rates and their effect on buying power continues to affect buyer and seller confidence,” Johannes said.
In February of 2023 the median home price was down 1.9% compared to the previous year, but the average sales price of $421,867 is up 3.7%.
“Month-over-month the median sales price, which is the best measure of price over time, is down 5.7 percent. Since June 2022′s peak median sales price of $399,900, the median sales price has fallen 12 percent. The average list price of $466,864 rose 7.1 percent year-over-year, which brought the original list price to sales price measure to 95.3 percent, which is down 5.4 percent from last February’s 100.7 percent,” according to the company.
Johannes points to several contributing factors to the current market conditions.
“There are numerous factors causing consumers anxiety, from inflation to rising rates, as well as inventory. However, continued appreciation, increasing supply, and a strong job market contribute to just a few of the reasons so many people are moving to our area. The gap between new listings and sales has grown and if this pattern holds, we will see days on market climb closer to five to six months of inventory, which is reflective of a healthy market,” she said.
A factor that works in favor of buyers is the average time a home is on the market, and in the region that time has increased 27.5% to 102 days on market, on average.
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