December 21, 2023

Contact: Kim Walker, 704-940-3149

Demand for homes in Mecklenburg County also rise in November

CHARLOTTE, N.C. — Hampered by higher interest rates and critically low supply, November home sales throughout the Charlotte region, fell to their slowest pace since January 2023, down 12.2 percent year-over-year as 2,845 homes sold across the 16-county region. Sales compared to October were down 9.9 percent as buyers and sellers alike, continue to struggle with a challenging housing market.  Canopy MLS data included in this report is for single-family, condo, and townhome sales only.

Despite the decline in sales in November, both Cabarrus (+7.7%) and Stanly (+22.2%) Counties as well as several towns across the region, including a few towns in Mecklenburg County, experienced year-over-year increases in sales.

Contract activity rose 3.9 percent year-over-year, for a second consecutive month in 2023, as 2,765 homes went under contract, compared to a little over 2,600 under contract a year ago. Month-over-month contract activity is down 13.8 percent.  November’s showing activity suggests buyer foot traffic was highest in Matthews, with 5.8 showings (or potential buyers) per listing, Concord and Kannapolis, with 5.6 showings per listing each, followed by Waxhaw (5.5) and the city of Charlotte with 5.3 showings per listing.

“Prospective homebuyers were motivated by mortgage rates that fell throughout the month to their lowest point by the end of November, and are hovering in the 7 percent range,” said Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive. “Likewise, home sellers, who have seen their home values rise over the past three years, accumulating more than $100,000 in housing equity, according to the National Association of Realtors®, also had more activity this month.  Prices rose in a number of communities around Charlotte, from 2%-19%, which has a positive effect on home equity.  Matthews for instance had a 19 percent increase in home prices, while Indian Trail’s prices were up 5 percent compared to last year.  Both Belmont and Waxhaw’s prices are up 16 percent as well. Sellers thinking of listing next year should contact a listing agent to talk about the benefits of rising home equity.” 

New listings, which reflect seller confidence, increased 3.5 percent year-over-year as sellers listed 3,484 homes for sale during the month.  The small rise in listings represents the first year-over-year increase in new listing activity this year.  New listing activity compared to October, was down 15.5 percent.  Seller activity slowed at the start of 2023 just as mortgage rates started to rise, forcing activity lower than previous years.  NAR predicts that listing activity will rise in 2024, as “pent-up sellers cannot wait any longer.”

The region’s inventory declined in November, falling 14.8 percent year-over-year to 6,526 homes for sale at report time on Dec. 5, 2023. A closer look at inventory shows some increase, as slightly more than 200 homes were added to inventory since October 2023. Supply was unchanged compared to last November at 1.9 months of supply.

Prices continued to hold steady, as the median sales price ($379,900) was relatively unchanged, dipping 0.8 percent year-over-year, while the average sales price ($453,224) rose modestly, 2.2 percent compared to November 2022. The average list price rose 9.4 percent to $474,082, which pushed the original list price to sales price measure up 1.3 percent to 96.9 percent, as sellers in the region continue to receive most of asking prices for their homes.

Johannes continued, "With supply and inventory still significantly lower than previous years, it is a positive sign to see prices continue to hold steady throughout the region. However, buyers seeking homes in Mecklenburg County or Charlotte, where supply and inventory is much lower, can expect to see larger price fluctuations monthly, especially as demand continues to increase.”

Homes sold quickly in November as time on market decreased compared to last year. The average number of days a property was on market from the time it was listed until close (List to Close) was 83 days compared to 91 days in November 2022. While the "Days on Market" metric, which accounts for both "Active" and "Under-contract-show" statuses, indicates homes averaged 32 days on the market before selling. In November 2022 homes averaged about 35 days on market until sale.

Mecklenburg County home sales, which accounted for 35 percent of sales throughout the region, had 985 homes sold in November, a year-over-year decline of 15.3 percent. Sales compared to the previous month were down 10.7 percent. However, sales rose in several towns in Mecklenburg County during the month, including: Davidson (+40%), Matthews (+33.3%) and Mint Hill (+16.7%). Pending contract activity showed buyer demand rose modestly, 1.3 percent compared to last year, as buyers moved to take advantage of falling mortgage rates. New listings were down 3.1 percent year-over-year, as sellers listed 1,173 homes for sale.  A closer look at the numbers reveals that 37 listings were the difference between this year’s activity and last November’s new listing activity. With inventory down 25.3 percent at report time to 1,900 homes for sale and supply down nearly 12 percent to 1.5 months of supply, prices increased.  Both the median sales price ($421,250) and the average sales price ($546,457) increased 2.7 percent and 7.4 percent year-over-year respectively, while the average list price increased 6.3 percent to $545,202. Sellers received most of asking prices as indicated by the original list price to sales price measure which rose 2 percent to 97.9 percent in November, while days on market until sale showed homes averaged 27 days on market until sale compared to 35 days on market in November 2022.

Johannes added, “As the supply of single-family homes for sale continues to be challenged, our region’s thriving condo and town home market presents buyers with a number of options. November reports show townhome inventory is up nearly 11 percent compared to last year. Townhomes priced from $200,000 to $300,000 had a 40 percent increase in inventory, while townhomes priced between $300,000 and $400,000 had a 38 percent increase in inventory. Prospective buyers can stay informed of the dynamics of the market by talking with a Buyer’s Agent.”

Closed sales in the city of Charlotte were down 18.1 percent as 772 homes sold compared to 943 that sold a year ago in November. Contract activity or buyer demand was roughly unchanged down 0.7 percent as 819 homes went under contract during the month.  Sellers in Charlotte listed 979 homes for sale, which is down 4.9 percent from a year ago.  Inventory declined 22.8 percent to roughly 1,600 homes for sale at report time or 1.5 months of supply. Low supply pressured prices which rose.  The median sales price was roughly unchanged compared to last year, rising 0.8 percent to $401,000, while the average sales price of $530,259 rose 9.1 percent compared to last year. The average list price also increased 5.3 percent to $525,113, which brought the original list price to sales price up 2.1 percent to 97.9 percent. Days on market showed homes sold quickly and averaged 27 days on market, which is ten days less than last November.

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).

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.