Charlotte Region Home Sales Heat Up As New Listings Increase In May

CHARLOTTE, N.C. (News Release) -– As North Carolinians continue to adjust to reopening and a return to normal activities, residential real estate sales across the Charlotte region continue to heat up. According to data from Canopy MLS, sales in May 2021 rose 26.4 percent year-over-year as 4,784 homes sold compared to 3,785 that sold last May, during the height of the pandemic.

Last May, sales activity was impacted by pandemic safety concerns, and kept many buyers and sellers from entering the market. In May 2020, sales fell for a second-consecutive month, dropping 30.4 percent year-over-year, as Realtors® struggled to safely shift from in-person sales to virtual open houses and tours. Month-over-month, May 2021 sales compared to April 2021 rose 2.3 percent. These are completed transactions that include single-family homes, condos and townhomes across the 16-county region.

Here at the start of the summer selling season, pending contracts, or contracts where offers have been submitted, but have not yet closed, are up 1.7 percent year-over-year, showing buying activity roughly on par with activity last May, with 5,606 properties under contract. Pending sales activity compared to April is up by 2.8 percent month-over-month. New listing activity rose 8.5 percent year-over-year as sellers brought 5,690 properties to market during the month. New listing activity is down slightly, 0.4 percent, compared to new listing counts in April 2021. Inventory continues to be critically challenged, falling 62 percent year-over-year, leaving 3,104 homes for sale or 0.6 months of supply (18 days of supply) at report time. At this time last year, there was 1.9 months of supply of homes for sale.

2021 Canopy Realtor® Association/Canopy MLS President David Kennedy said, “Even as reopening continues, we are encouraged by the overall positive sales activity that we’re seeing across the region. Buyer demand is steady and the continued growth in new listing activity should help buyers with more choices, while record-low mortgage rates will continue to help offset rising prices. Ultimately, buyers still recognize that securing a home is one of the best ways to build long-term wealth.”

Price increases during the month of May 2021 reached double-digits. Both the median sales price ($323,000) and the average sales price ($394,924) increased last month, rising 21.8 percent and 27.4 percent year-over-year, respectively. The average list price of $403,871 rose 8.0 percent year-over-year, and the original list price to sales price ratio registered 101.6 percent, which means that on average, sellers in May 2021, sold their homes for more than the original list price. Homes continue to sell quickly, as indicated by days on market reaching another record low, of 16 days in May 2021 versus 36 days in May 2020.

Kennedy continued, “With inventory challenged and homes being sold almost as quickly as they’re listed, working with a Realtor® is crucial in difficult and fast-moving markets. Housing experts are forecasting more inventory for later on this year, as vaccinations increase and sellers become more comfortable listing and showing their homes. Sellers this past month saw their homes sold at, or above list price, which should also tempt more sellers to list and add to supply. The increasing supply projected for the market, should also help the rapid pace of price appreciation later on this year.”