Charlotte Region real estate market in February 2022 saw home sales decrease by 1.6% year-over-year and home prices increase 19.6%, on average. Lack of inventory is limiting sales momentum with demand for homes continuing to outpace the supply of homes. Year-over-year, days on market dropped 28.1% in February 2022. The months supply of homes and overall inventory were also down significantly year-over-year. All this kept the Charlotte region a home seller’s market in February 2022 with home affordability decreasing 16.8% year-over-year and 17.5% year-to-date.
Charlotte Region Remained A Seller’s Market In February 2022
Latest news on the Greater Charlotte region’s real estate market in February 2022 and what it means for you…
February 2022 saw the continuation of the strong housing market in the 16 county greater Charlotte region we’ve experienced for two years now. Buyer demand continues to exceed pre-pandemic levels straining inventory and sales momentum. Sales were down for a second consecutive month as was new listing activity. A fast-paced market means buyers have less time to make decisions and negotiate, as multiple offers in high-demand areas cause homes to sell and close quickly.
Low interest rates and pent-up demand from the days of the pandemic continued to fuel much of the buyer demand, as did the years of steady population growth in the Greater Charlotte area. Closed sales were down 1.6% year-over-year in February. Sales could easily have been higher if more inventory had been available. Pending sales were also down 4.4% year-over-year. January’s activity also reflected some seasonality, as the Charlotte area was impacted by two winter storms in January. Both average and median sale prices increased in February 2022 year-over-year with median sale prices reaching new historic highs. The median sale price is the best measure of price over time, as it factors out extreme highs and lows in home prices.
With Charlotte ranked fifth in Zillow’s 10 hottest housing markets for 2022, the Greater Charlotte market will most likely remain strong through the remainder of this year due to razor-thin inventory and the large number of buyers in the market. With some 120 people moving to Charlotte region each day, on average, availability of housing will remain strained.
Housing inventory remained at very low levels. With just 0.5 of a month of supply of homes (down 44.4% from 0.9 months in February 2021), we continue to see some of the lowest levels of inventory on record in the Charlotte region. At 0.5 months we are looking at a two week supply of housing inventory. With inventory 45.9% lower than in February 2021 and new listings down 11.8% year-over-year, it’s clear that demand has continued to increase relative to supply. This presents a unique opportunity for sellers who are ready to list, as new listings receive high visibility, spend less time on market and sell at premium prices.
Averaging 23 days on market, homes continued to sell nearly as fast as they were listed. Days on market until sale were down 28.1% year-over-year. Multiple offers on homes remain a factor in the Charlotte region real estate market. Both median and average home sale prices were up across the region year-over-year. The low levels of inventory will continue to impact home prices in the coming months. With a list to sale price ratio of 100.6% in February 2022, it’s clear that home sellers continue to be in command of the market and are receiving well over asking price for their homes.
Moving forward toward the spring selling season, lack of adequate inventory to satisfy buyer demand is what could hold the market back in terms of sales momentum. While buyers are frustrated by rising interest rates, rising home prices, razor-thin inventory, and inflation, it’s not unreasonable to assume that serious buyers continue to actively look for homes. Buyers are motivated to act sooner rather than later because of rising mortgage rates and rising rents which continue to outpace monthly mortgage payments.
Charlotte Region Real Estate Snapshot: February 2022
- Closed Sales: down 1.6% year-over-year; up 0.3% year-to-date.
- Homes Sold: 3,626 in February 2022 versus 3,685 in February 2021.
- Pending Sales: down 4.4% year-over-year; down 6.8% year-to-date.
- New Listings: down 11.8% year-over-year; down 12% year-to-date.
- Inventory of Homes: down 45.9% year-over-year to 2,283 compared with 4,223 in February 2021.
- Months Supply of Homes: down 44.4% with just 0.5 months supply of homes compared with 0.9 months in February 2021.
- Days on Market Until Sale: 23 days in February 2022 versus 32 days in February 2021. Year-to-date, days on market are down 20.7% year-over-year.
- Average Sale Price: up 19.6% year-over-year to $407,812. Year-to-date, average sale prices are up 17.6% to $400,362 year-over-year.
- Median Sale Price: up 22% year-over-year to $360,000. Year-to-date, median sale prices are up 21.7% to $353,000 year-over-year.
- % of Original List Price Received: 100.6%, increasing 1.3% year-over-year. Year-to-date, the percent of original list price received is 100.4%, up 1.3% year-over-year.
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MEDIAN HOME SALE PRICE TRENDS IN THE CHARLOTTE REGION
HOMEOWNERS TODAY HAVE TREMENDOUS EQUITY
WHAT’S AHEAD FOR REAL ESTATE IN 2022?
HOME OWNERSHIP IS STILL AFFORDABLE
HOMEOWNERS TODAY HAVE TREMENDOUS EQUITY
THINKING OF SELLING YOUR HOME? CHECK OUT THE COLDWELL BANKER MARKETING ADVANTAGE
This Charlotte region housing market update for February 2022 is provided by Nina Hollander and Carolinas Realty Partners with Coldwell Banker Realty, Greater Charlotte area residential real estate experts serving Charlotte region home buyers and sellers for 20+ years.
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