COVID-19 Impacts Charlotte Real Estate In April 2020

Charlotte region saw considerable negative impact on home sales in April 2020 as a result of COVID-19 restrictions, as evidenced by considerably fewer new listings, fewer pending and closed sales, lower inventory of homes for sale and a months supply of homes for sale that was almost 30% lower than the same month one year ago.

Lack of inventory resulted in higher home sale prices year-over-year. Average sale prices increased 7.1% to $325,403; median sale prices increased 8.1% year-over-year to $275,000. And both average and median sale prices increased month-over-month. Year-to-date 2020, average home sale prices increased 8.2%, while median sale prices increased 10% compared with the same month one year earlier.

Closed sales decreased 20.8%, while pending sales were down 17.6% year-over-year in April. This is a significant decrease when you take into account that April is typically one of Charlotte region’s busiest home selling months. Year-to-date 2020, closed sales have increased 0.7% and pending sales decreased 2.3%. The COVID-19 impact on year-to-date trends versus April 2019 was also significant.

The number of home showings across the market dropped significantly. 45,015 home showings took place in April 2020 compared with 91,191 showings in April 2019 — more than a 50% decrease year-over-year, as reported by Showing Time. In Charlotte and in Mecklenburg and Cabarrus Counties no in-person showings were permitted during the month of April. In the other surrounding Charlotte region counties, in-person showings were limited. More over, we can’t quantify the number of prospective buyers who chose not to look at homes but to shelter in place during April even where in-person showings were permitted.

Homes continued to sell quickly with average days on market 38 days, down 9 days from one year ago and down 7 days from one month ago. Cumulative days on market were down 11 days to 48 year-over-year. The days from list to close dropped 7 days to 89 year-over-year. Year-to-date, both the days on market until sale and the cumulative days on market were down 10% year-over-year. This is due to lack of inventory and continued demand for homes in the Charlotte region.

The housing affordability index continued to decrease, as well ~ down 7.5% year-over-year and 9.2% year-to-date.

Months supply of homes remained very low at 1.8 months (down 28% year-over-year from 2.5 months one year ago). New listings were down 26.6% year-over-year and 6.4% year-to-date compared with one year ago. Again, these are significant decreases when one considers that April is a month when many new homes come on market for the spring selling season.

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