November 21, 2023

Contact: Kim Walker, 704-940-3149

CHARLOTTE, N.C. — Home sales across the 16-counties that make up the Charlotte region declined by only 13.5 percent year-over-year in October, as 3,156 homes sold compared to 3,649 properties that sold a year ago. This was the smallest drop in sales this year as a little under 500 sales separated activity in October from sales in October 2022. Sales compared to the previous month were down 4.8 percent, as buyers capitalized on mortgage rates that declined from September’s high of 7.8 percent, to 7.5 percent by mid-October.

Despite the decline in sales, several areas around the region still experienced year-over-year increases: Anson (85%), Cabarrus (8.8%), Cleveland (72%), Belmont (9.3%), Concord (6.5%), Davidson (16.7%), Denver (16.4%), Kings Mountain (9.5%), Lincolnton (5%), Mint Hill (8.8%), Lake Norman (9.2%), Uptown Charlotte (4.5%) Town of York (18.2%). Canopy MLS data included in this report is for single-family, condo, and townhome sales only. See also: data for other cities and counties in the Charlotte region. Across the region, pending contract activity rose for the first time in 2023, by 3 percent year-over-year, as a little more than 3,200 homes went under contract compared to 3,114 that were under contract in October a year ago. Contract activity tends to be a forward-looking indicator and predictor of future sales. Month-over-month contract activity is down 3.9 percent. A look at October’s showing activity suggests buyer interest was highest in the following areas: Matthews with 7.6 showings per listing, (or potential buyers per listing), Fort Mill and Kannapolis, each with 6.5 showings per listing, and Cabarrus County with 6.4 showings per listing. Showings are a strong indicator of foot traffic and represent buyer interest.

Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive said, “We can really see the power that mortgage rates have, as the increase in demand is truly a result of rates inching down. Sales activity in the outlying and rural counties demonstrate buyers’ willingness to move greater distances for more supply and greater affordability.”

New listing activity was relatively stable, declining by 2.6 percent year-over-year, representing the smallest year-over-year decline in new listings this year. Sellers listed 4,124 homes for sale compared to 4,234 listed in October 2022, a difference of 110 listings. New listing activity rose in the following counties in October, which will help boost supply: Gaston (11.4%), Iredell (25.6%), Lincoln (5.8%), Montgomery (22.7%), and Rowan (14.4%).

The region’s inventory declined y 19.5 percent to 6,322 homes for sale compared to the more than 7,800 homes for sale this time last year. Supply also dipped by 5.3 percent to 1.8 months of supply compared to 1.9 months of supply in October 2022. Prices held steady in October, with the median sales price for the region at $380,000, which is unchanged compared to last year and this past September. The average sales price however rose 2.5 percent to $467,869 and is relatively unchanged (-0.5%) compared to September 2023. The region’s list price increased 7.6 percent year-over-year to $494,531 which brought the original list price to sales price measure to 97.4 percent in October. In October 2022, it was 96.5 percent.

Johannes continued, "The National Association of Realtors® has noted as inflation continues to calm, the FED will have to consider cutting interest rates, predicting rates heading back to 7 percent by yearend and even into the 6 percent range by next spring. This is great news, however, buyers and sellers should be proactive about contacting a Realtor® and strategizing now, to prepare for next year.”

Homes are selling quickly, even though they are on market for longer than they were last October. The average number of days a property was on market from the time it was listed until close (List to Close) was 79 days compared to 84 days in October 2022. While the "Days on Market" metric, which accounts for both "Active" and "Under-contract-show" statuses, indicates homes are averaging 32 days on the market before selling. This is an increase of 14.3 percent from the 28 days observed in October 2022.

“It’s important for market-watchers to remember that life events often drive homebuying and selling decisions, and while it’s crucial to be aware of current rates, it should not paralyze the decision-making process or deter clients from buying or selling a home if factors align favorably. Any rapid decline in rates would increase demand while, exacerbating affordability, added Johannes. The recent UNC Charlotte State of Housing in Charlotte Summit concluded that affordability will continue to be a challenge in the city of Charlotte and Mecklenburg County, as current price increases and decreasing affordability, are directly tied to a severe lack of inventory and supply. Only with more supply can we solve this problem.”

Though closed sales in the city of Charlotte were down 18.1 percent compared to last October with 881 homes sold, buyer demand increased 5.9 percent as 935 homes went under contract during the month. Listing activity was mostly unchanged, down 2.3 percent, as sellers listed 1,214 homes for sale, just 28 homes less than what was listed in October 2022. Still inventory throughout the city is tight. At report time inventory declined 28.1 percent to 1,575 homes for sale compared to nearly 2,200 homes for sale a year ago. Months of supply was also down 11.8 percent to 1.5 months compared to 1.7 months last October. With supply tight, prices rose in October. Both the median sales price ($417,225) and the average sales price ($538,727) increased 3 percent and 8.7 percent year-over-year respectively, while the average list price increased 12.6 percent to $572,623. This brought the original list price to sales price measure in line with Mecklenburg County’s, at 98.5 percent, as sellers receive nearly all of asking price for their homes. Days on market showed homes in the city sold quickly in October, averaging 27 days on market until sale compared to 26 days on market in October 2022.

Mecklenburg County home sales, which accounted for approximately a third of sales throughout the region, had a 20.2 percent decline in home sales in October, as a little over 1,100 homes were sold during the month compared to 1,383 homes sold in October 2022. Sales have been down year-over-year in Mecklenburg County since the pandemic high set in May 2021, when 1,982 homes were sold. Month-over-month, sales in October were down 9 percent compared to September. Pending contract activity showed buyer demand was also down 8.3 percent as 1,164 homes went under contract compared to 1,270 under contract a year ago. New listings were down 12 percent year-over-year as sellers listed 1,477 homes for sale compared to 1,679 that were listed in October 2022. Buyers will find an extremely tight market. Inventory contracted sharply in October, falling 32.5 percent to 1,737 homes for sale and 1.4 months of supply. Last October there were 2,575 homes for sale and 1.5 months of supply. Tight supply continues to pressure prices which increased during the month. The median sales price, which for the most part continues to be steady, rose 2.4 percent year-over-year to $435,000 while the average sales price rose 10 percent to $569,084. Both price indices were up approximately 3.4 and 3.6 percent respectively, compared prices in September 2023. The average list price increased 12.4 percent to $593,996 which brought the original list price to sales price measure to 98.3 percent, as sellers in Mecklenburg get closer to receiving all of asking prices for their homes. Homes in Mecklenburg are selling faster than the region, as indicated by days on market, which increased 3.7 percent in October and showed homes on market 28 days compared to 27 days in October 2022.

Canopy Realtor® Association provides monthly reports on residential real estate market activity for the Charlotte region based on data from Canopy MLS. The Charlotte region, which this report is based on, includes 12 counties in North Carolina (Alexander, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly and Union) and four counties in South Carolina (Chester, Chesterfield, Lancaster and York). For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2023 Association/Canopy MLS President Tiffany Johannes, Realtor®/Broker-in-charge with RE/MAX Executive Ballantyne, please contact Kim Walker.

Canopy Realtor® Association owns and operates Canopy MLS, the region’s primary source for accurate and timely property data in a multicounty service area including the Charlotte MSA, Asheville MSA and Catawba Valley region spanning across North Carolina and South Carolina to outside the Carolinas. Canopy MLS provides the latest technology, tools and analytics that Realtors® utilize to support consumers with their residential real estate transactions.