Charlotte Housing Supply Drops As Demand Increases And Prices Rise
CHARLOTTE, N.C. — As the demand for homes in the Charlotte region increases sellers have a distinct advantage as the housing inventory drops below a one month supply, according to Canopy Realtor Association’s 2021 market report.
“We closed last Friday unexpectedly on a house,” said Ashley Class of Plaza Midwood.
Class considers herself one of the lucky ones.
“With the way market trends are, we kind of jumped on a n opportunity because we don’t see it slowing down,” said Class.
After living in Charlotte for eight years; Class says her growing family needed more space.
“We know from the buying side that people are putting in 20% to 30 % over asking and they’re not getting their offer picked,” said Class.
According to a report from Canopy MLS, home sales are expected to rise this spring, as data from February home sales shows a 5.9 percent increase compared to last year and a 3.9 percent sales increase in January 2021
Officials say there is an abundance of buyers in the market, reflected through pending sales, but listings for homes in the Charlotte region have gone down 6.2 percent compared to listing activity from February 2020.
As housing inventory continues to drop, officials say buyers will find that properties are being sold nearly as quickly as they are being listed and at a higher price.
“I tell my clients, get ready, put your running shoes on. Gone are the days when you can mull it over and think about it overnight. No. Those days are over,” said Nelvia Bullock, a Charlotte area realtor.
She says right now, it is a seller’s market.
“You have to be really strategic about how you’re structuring your offers. You have to offer well over asking price. You have to remove contingencies. And you have to be the first one in the door,” said Bullock.
The hardest price point right now is homes between $250,000 and $300,000 dollars.
“I did a search today, there are 22 homes available,” said Bullock.
Homes are staying on the market for an average of 31 days, which is nearly half of what they were a year ago.
The Canopy MLS report shows 2,958 homes for sale currently in the Charlotte region, which is 0.6 percent months of supply of homes for sale left in the market at the current sales pace, according to a news release.
Officials say in February of 2020 there were 8,267 homes for sale or close to two months supply of housing comparatively.
As inventory is at an all-time low, officials say housing prices will continue to increase as the market has already seen both the median sales price and average sales price increase close to 12 percent in the last month.
As the homes go quick, Bullock says the conditions are likely to remain.
“I don’t foresee it changing at all right now. Or anytime in the near future because there is such pent up demand,” explained Bullock.
According to the Canopy MLS report, home prices are also up about 11% in February compared to a year ago.
The average home sale price is $341,000 dollars.
