September 14, 2023
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. — Home sales across the Charlotte region declined in August, falling 14.8 percent year-over-year as 3,875 homes closed compared to 4,550 a year ago. Month-over-month sales increased 11.8 percent, as buyers continue to navigate interest rates that surged to a two-decade high in August. Data from Canopy MLS, showed several areas around the region still experiencing increases in year-over-year closed sales this past month: Alexander County. (+4.2%), Cleveland County (+6.8%), Iredell County (+8.3%) Mooresville (+3.6%), Statesville (+23.5%), Lake Norman (+3.4%) Chester County, SC (+22.2%) and York County (+1.8%). Sales included in this report are for single-family, condo, and townhome sales only.
Buyer demand, as displayed by pending contract activity continued to be weaker than previous years, declining 9.2 percent year-over-year as 3,828 homes went under contract during the month. Month-over-month contract activity was relatively unchanged, down 1.3 percent. Contract activity however has started to tick-up in a number of areas throughout the region, particularly outlying counties, where inventory and/or supply have increased. However, August showing activity indicates buyer interest remains highest in Matthews, where listings are seeing an average of 7.7 showings (or potential buyers) per listing, followed by Rock Hill, SC and Waxhaw, NC (7.5 showings per listing), Kannapolis (7.3 showings per listing) and Huntersville (7.1 showings per listing). Showings are a strong indicator of foot traffic and represent buyer interest.
New listings were down 12.3 percent year-over-year as sellers listed 4,553 homes for sale during the month, compared to the more than 5,100 homes listed for sale in August of last year. Month-over-month listing activity increased 8.8 percent. Consistent new listing activity, over time helps to improve inventory. Inventory declined 27.3 percent at report time to 5,309 homes for sale, while months of supply was down 6.3 percent to 1.5 months of supply, indicating that demand increased relative to supply this past month.
“Contract activity remaining consistent and closings increasing month-over-month for the region, while also rising year-over-year in several areas this past month, indicates that buyers are adjusting to the higher interest rate environment.” said Tiffany Johannes, 2023 president of Canopy Realtor® Association/Canopy MLS and General Manager, Broker-in-Charge, RE/MAX Executive. “The activity we’re seeing in the outlying county areas further indicates buyers are seeking more affordability, as the areas where transactions are occurring tended to have more inventory and supply, and more affordable pricing.”
Prices remained stable in August, with the median sales price, the best measure of price over time, relatively unchanged, dropping 0.8 percent to $386,910, while the average sales price across the region increased 3.3 percent to $474,987. The average list price also increased 7.9 percent year-over-year to $486,274. Still, sellers received nearly all of asking prices for their homes in August, as indicated by the original list price to sales price measure, down (0.4%) to 98.1 percent. In August 2022 it was 98.5 percent.
Johannes continued, “August data shows the resiliency in the Charlotte market, as we move toward stabilization, we’re not seeing the large fluctuations in sales or prices we saw over much of last year. The data this past month also shows that while homeowners are enjoying wealth gains, there’s still strong ongoing demand for homes and a critical need for more housing stock at all price points, as supply shortages lead to increased competition among buyers and rising prices.”
While homes are on market for longer than last year, they are still selling quickly across the region. List to Close increased 12.3 percent to 82 days compared to 73 days in August 2022, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses, showed homes averaged 29 days on market until sale compared to 19 days on market until sale, a 52.6 percent increase when compared to time on market in August 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.