Falling Mortgage Rates Spark Buyer Demand Across the Charlotte Region in August

Monday, August 16, 2021 11:06:09 AM

September 25, 2025

Contact: Kim Walker, 704-940-3149

CHARLOTTE, N.C. — With mortgage rates easing to their lowest level in a year at 6.59%, homebuyers across the Charlotte region responded, driving a notable 12.4 percent increase in contract activity in August. More than 4,000 homes went under contract, marking the second consecutive month of growth and underscoring strong buyer demand heading into the fall. Compared to July, contract activity held steady, dipping just 1.3 percent. Meanwhile, closed sales were slightly lower, down 3.2 percent year-over-year with 3,773 transactions, and 3.7 percent compared to the previous month. Data in this release is sourced from Canopy MLS. This press release is provided by Canopy Realtor® Association and reflects existing-home sales of single-family homes, condos, and townhomes only.

While overall showing activity across the Charlotte Metropolitan Statistical Area (MSA) was slightly slower than a year ago—averaging 4.2 showings per listing in August, a 4.5 percent decline from August 2024—several communities continued to draw strong buyer interest. Matthews led the region with 5.5 showings per listing, followed closely by Kannapolis at 5.4, while Huntersville, Davidson, and Concord also outpaced the regional average with 4.5 showings per listing.

New listing activity declined 3.5 percent year-over-year in August, marking the first year-over-year decline in new listings, as sellers brought just under 5,000 homes to market. New listings have been rising year-over-year across the region since March 2024. Even with fewer new listings, overall inventory rose 26.7 percent, reaching 11,900 homes for sale as of September 6, 2025. Regional supply also expanded 17.9 percent to 3.3 months of inventory, offering buyers more options. Notably, new construction accounted for nearly a quarter of the market, with 2,888 newly built homes available across the region.

"Falling rates have clearly brought buyers back, and rising supply is creating a healthier, more balanced market, said Charisma Southerland, 2025 president of Canopy Realtor® Association/Canopy MLS and Realtor®/broker with Howard Hanna Allen Tate. While broader economic conditions and fewer new listings in August are factors to watch, the Charlotte region’s housing market remains in a much stronger position to serve both buyers and sellers heading into the fall.”

Home prices remained stable in August even as inventory expanded across the region. The median sales price edged up 1.3 percent year-over-year to $400,000, while the average sales price rose 3.6 percent to $515,016. Sellers continued to price confidently, with the average list price increasing 6.1 percent to $528,431. Still, the original list price-to-sales price ratio softened slightly, as sellers received an average of 95.3 percent of asking prices.

Days on market also continued to increase across the region, with list-to-close time, which measures the full selling process from listing to closing, increasing 12.2 percent to 92 days compared to 82 days a year ago in August. Days on market, which tracks how long homes are listed before going under contract, increased 37.1 percent to 48 days compared to 35 days on market in August 2024.

A deeper look into August 2025 data by price range continues to reflect a market in transition, with notable strength at the higher end and continued strain on affordability. Closed sales for single-family homes rose 4.6 percent year-over-year, led by strong growth in the $600,000–$700,000 and $700,000+ ranges, underscoring steady demand for luxury housing across the region. At the same time, inventory expanded 24 percent overall, with the most significant gains also concentrated in mid-to-upper price points, giving buyers more choice in the higher ranges. In contrast, affordable homes under $300,000 remain scarce, with both sales and inventory falling, limiting entry-level opportunities. Mid-market activity between $300,000 and $500,000 showed stable sales and sizeable inventory growth, suggesting a more balanced environment for buyers. Meanwhile, the condo-townhome market is increasingly filling the affordability gap, with sales in the $200,000–$300,000 range rising sharply (+22.2%) alongside strong inventory growth (+33.7%).

"With prices holding steady and inventory expanding, both local buyers and the 157 people moving to the region each day now have more options, greater negotiating power, and more time to make thoughtful decisions," said Southerland. "Tools like Down Payment Resource, showing that, on average, 83 percent of Canopy MLS listings qualify for assistance, can help buyers reach the closing table in today’s healthier market."

Mecklenburg County
Home sales across Mecklenburg County in August mirrored the broader region, with closed sales down 7.5 percent year-over-year and 6.7 percent compared to July. Contract activity, however, was a bright spot, rising 12.4 percent as 1,400 homes went under contract, a sign that more closings could follow in the coming months. New listing activity declined 5.3 percent from last year, with just over 1,700 homes added to the market. Even so, inventory rose 30 percent to 3,778 homes for sale, representing 2.9 months of supply. While supply is up 26.1 percent compared to last year, it dipped slightly from July’s three-month peak. With demand strengthening and fewer new listings, prices moved higher: the median sales price increased 5.9 percent year-over-year to $466,000, while the average sales price rose 4.7 percent to $604,635. The average list price jumped 12.5 percent to $633,828, though the original list price-to-sales price ratio softened by 1.3 percent to 96.2 percent, as sellers still received most of their asking price.

Home sales across the city of Charlotte softened in August, with closed sales down 9.6 percent year-over-year as just under 1,000 homes sold during the month. Contract activity, however, rose 7.3 percent, with 1,076 homes going under contract. New listing activity slipped 5.1 percent compared to last August, as sellers brought 1,340 homes to market. Still, inventory expanded nearly 30 percent, bringing supply to about 3,000 homes for sale, or 2.9 months of supply—26.1 percent higher than a year ago. Strengthening demand and tighter listing activity pushed prices higher: the median sales price rose 4.9 percent year-over-year to $430,000, while the average sales price increased 7.5 percent to $591,145. The average list price also climbed 9 percent to $585,932. Sellers continued to receive most of asking prices, though the original list price-to-sales price ratio dipped 1.5 percent to 96.1 percent. Homes spent more time on market, averaging 44 days in August compared to 31 days a year ago, a 41.9 percent increase.

Southerland continued, “Even with inventory rising throughout the region, Mecklenburg County and the city of Charlotte remain tighter markets than many surrounding counties, which continues to support strong prices and seller confidence. For those looking to sell, working with a Realtor® to price and position a home competitively is key, as buyers are active and well-presented homes are still drawing strong interest and selling at or near asking price.”

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 2025 Association/Canopy MLS President Charisma Southerland, Realtor®/Broker with Allen Tate Company, 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.