Charlotte region remained a seller’s market in October 2018 with demand for homes outpacing supply in some parts of the region, resulting in higher home prices, shorter days on market, tight inventory, especially for affordable homes.
Charlotte Region Housing Market Update: October 2018
The Charlotte region’s housing market ended the first month of the fourth quarter of 2018 with home prices up, closed sales down, but with pending sales up as compared with October 2017. Both average and median sale prices were up in October 2018. Inventory and the months supply of homes remain low and below what they were one year ago with homes selling faster as a result.
- October 2018 Closed Sales: down 9.8% versus October 2017. Year-to-date, closed sales were down 2.1%.
- October 2018 Pending Sales: up 5.0% versus October 2017 and down 1.2% year-to-date.
- October 2018 Average List Price: increased 5.6% to just under $314,000 versus October 2017. Year-to-date, average list prices are up 4.0% to just under $322,000.
- October 2018 Average Sale Prices: up 6.0% to just under $279,000 versus October 2017 and up 6.8% year-to-date to just over $287,000. Median Sale Price was also up 5.0% to $231,000 compared with October 2017 and up 6.3% year-to-date to $238,000.
- October 2018 Percent of Original List Price Received: slightly down by 0.5% compared with October 2017 to 96.2% and up 0.1% year-to-date to 97.1%.
- October 2018 Inventory of Homes for Sale: down 8.7% October July 2017.
- October 2018 Months Supply of Homes for Sale: down 7.4% to 2.5 months. Charlotte region’s housing market continues to be very much a seller’s market, as it had been throughout 2017 and 2018 year-to-date.
What’s The Message For Charlotte Region Home Buyers?
The message for Charlotte region home buyers remains what it’s been since 2015 and isn’t likely to change very much in the foreseeable future as we fully enter the end of the 2018 selling season.
- The supply of homes available to buy remains very tight and those that are on the market are selling more quickly with minimal negotiating room. In prime neighborhoods, we continue to see many homes going into contract within days of listing.
- Home buyers continue to have fewer options to choose from and need to make decisions and offers more quickly than ever. Although we are seeing fewer homes receiving multiple offers, buyers still need to make “clean” offers with a minimum of contingencies. In the $100,000-200,000 price points, the months supply of homes is hovering stands at just 1.3 months. Supply of condos and town homes is even tighter at barely one month of inventory.
- Home prices are continuing a steady increase and housing affordability continues to decrease. Buyers must be prepared to pay more for a home and not to expect a big discount off of the asking price. Depending where in the Charlotte metro area buyers are looking, they may not be able to negotiate at all.
- For buyers looking for homes priced under $300,000, and especially under $200,000, the selection is very slim these days…. impacting the average prices of homes sold which continue to increase month after month throughout 2016 and 2017 and now in 2018. Inventory of homes is up only in homes prices at $300,000 or above and that inventory is up slightly.
- With the housing affordability index down by 9.6% in October 2018, a strong argument can be made that home buyers should be making purchase decisions sooner rather than later, as affordability will most likely continue decreasing (and even more so as interest rates continue to rise in 2018). First time home buyers, especially, are feeling the squeeze these days given the lack of affordable homes under $200,000 available for sale.
What’s The Message For Charlotte Region Home Sellers?
The message for Charlotte region home sellers also remains what it’s been since 2015 and doesn’t appear poised to change much in 2018:
- When a home is priced right, staged right, and marketed right, it will sell and, on average, should sell in just under six weeks. The days from list to closing in October 2018 were up by one day compared with October 2017. Days on market till sale were down 2.4% to 41 days compared with October 2017. Cumulative days on market were down 3.9% to 42 days in October 2018 versus October 2017. Year-to-date, days on market and cumulative days on market were down 10.6% and 9.1%, respectively, compared with October 2017.
- Sellers who have been overly aggressive in pricing their homes are not seeing their homes sell quickly, if at all. Pricing is still key even in a strong seller’s market.
- With homes still selling quickly, sellers need to be prepared to move quickly and to have back-up plans for a new residence at the ready.
This monthly Charlotte, NC region housing market update is brought to you by Nina Hollander and Carolinas Realty Partners with Coldwell Banker Residential Brokerage, your Charlotte metro area residential real estate experts serving Charlotte area home buyers and sellers for 20 years.
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