October 19, 2023
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. — September saw a decline in home sales across the Charlotte Region by 24.9 percent year-over-year with 3,316 homes sold, down from 4,416 sold during the previous year. Sales decreased 14.4 percent month-over-month amidst rising interest rates that reached the highest rate in two decades. Despite the overall decline, several areas around the region still experienced increases in year-over-year closed sales this past month: Alexander County (+10.3%), Anson County (+90.0%), Montgomery County (+56.5%), Belmont (+2.0%), Lake Norman (+6.8%), and Chester County, SC (+55.0%), including Uptown Charlotte (+3.7%). Notably, Alexander, Anson, Lincoln, and Montgomery counties also saw month-over-month increases. The Canopy MLS data included in this report is for single-family, condo, and townhome sales only.
Pending contract activity showed a decline of 4.1 percent year-over-year, with 3,336 homes entering under contract status. This is, however, the smallest year-over-year decrease seen in over a year. September saw a 12.9 percent drop in contract activity from August. Interestingly, half the counties in the Charlotte Region witnessed an upswing in pending sales, most of which also recorded an increase in inventory or supply. September's showing activity suggests that buyer interest is highest in Waxhaw, with listings averaging 6.8 showings (or potential buyers) per listing. This is closely followed by Matthews with 6.5 showings per listing, Rock Hill and Fort Mill with 6.3, and then Concord and Kannapolis with 6.2 showings per listing. Showings are a strong indicator of foot traffic and represent buyer interest.
New listings saw a decrease of 8.6 percent from the previous year, with 4,294 homes listed for sale this month compared to the 4,697 homes listed in September of the prior year. There was a month-over-month decline of 6.2 percent in listing activity. Steady listing activity over time can boost inventory levels. Alexander (14.3%), Gaston (10.4%), Iredell (1.7%), and Chester (32.3%) counties all experienced an uptick in new listing activity compared to the previous year which has in turn helped to boost supply in those counties.
Total inventory fell by 22.8 percent year-over-year, with a 5.6 percent decrease in the supply to 1.7 months. However, when comparing to August 2023, single-family home inventory and condo-townhome inventory increased across the region 3.9 percent and 10.2 percent respectively. Months of supply also increased from August by 13.3 percent marking the largest increase in supply this year. Historically, six months of supply is considered a balanced market. In September, 10 of the 16 counties in the region had two months or more of supply, with Montgomery County and Chesterfield County, SC at over three months of supply.
Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive said. "While record-high mortgage rates typically deter buyers, the 19 percent growth in inventory during Q3 over Q2, paired with stabilizing prices, continues to attract buyers and underscores the resilience and adaptability of our market. It is a testament to the enduring demand for housing and the market's ability to adjust even amidst challenging conditions."
In September, prices largely held steady. The median sales price, the best measure of price over time, saw a minor decrease of 0.2 percent, settling at $380,000. However, the regional average sales price rose by 3.3 percent to $474,987. The average list price also saw an uptick, growing by 4.7 percent year-over-year to reach $470,416. Still, sellers received nearly all of the asking price for their homes in September with the original list price to sales price measure rising slightly (0.5%) to 97.7 percent. This figure hovered around 98 percent from May to August 2023.
Johannes continued, “Despite mortgage rates above 7 percent, most areas in the Charlotte region are still experiencing moderate price growth, due in part to critically low inventory. We can expect some slowdown in price growth as we approach the fall and winter selling season. However, demand though lower than previous years, remains steady, and buyers are continuing to look for affordability in a number of outlying areas, within the region. We can expect this growth into the suburbs and rural counties surrounding Charlotte to continue.”
Although homes are taking longer to sell compared to last year, they are still selling rapidly throughout the region. The "Days on Market" metric, which accounts for both "Active" and "Under-contract-show" statuses, indicates homes are averaging 29 days on the market before selling. This is a noticeable increase of 26.1 percent from the 23 days observed in September 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 and four counties in South Carolina. For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with 2022 Association/Canopy MLS President Lee Allen, Realtor®/Broker-in-charge with RE/MAX Executive, 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.