Charlotte’s Housing Market Update: A September to Remember
Ah, Charlotte! The Queen City is buzzing with its fair share of ups and downs in the housing market as we step into fall. September was a rather interesting month for home sales, with a mixed bag of results. The latest report from the Canopy Realtor Association has given us some insight, and it seems like the market is experiencing a bit of a slowdown.
Sales Take a Dip
In September, the 16-county Charlotte region saw a total of 3,211 closed home sales. While it’s nice to see homes being sold, this figure is down by 7.3% from last year and down 13.3% from August. This marks the second consecutive month where sales have dropped compared to last year. It might sound alarming, but after a two-and-a-half-year streak of annual declines, July had given us a glimmer of hope with a 6.5% increase in sales—totaling 3,838 homes sold. How quickly things can change!
The Bright Side: Growing Buyer Interest
Even though sales have dipped, there is a flicker of optimism in the air. Pending sales—which can be a great indicator of future activity—actually rose. In September, 3,552 homes went under contract, marking a 14.4% increase from the previous year. It’s the first time we’ve seen double-digit growth in pending sales this year! There’s a little silver lining, as these contracts tend to close in about 45 to 60 days. Could this mean more activity in the next month or two? Only time will tell.
Interest Rates Playing a Role
The fluctuations in the housing market could also be partly attributed to the recent changes in mortgage interest rates. As reported, the Federal Reserve lowered its benchmark interest rate by 0.5% last month, dropping mortgage rates to around 6% by the end of September. However, they’ve started picking up again, with the current average for a 30-year mortgage sitting at 6.32% as of October 10. Charisma Southerland, the Canopy’s 2024 president, highlighted that the recent decline in rates may have sparked renewed interest and activity in the market.
More Homes, More Showings
Interestingly, buyer foot traffic saw a sharp rise of 13.5% year over year, with nearly 42,000 showings across the metro area in September. Popular spots for eager home seekers remained Matthews and Waxhaw, boasting 5.8 and 5.2 showings per listing, respectively. Cabarrus County followed closely with 4.8 showings per listing.
Inventory on the Rise
With more properties hitting the market, inventory has also started climbing. As of October 5, there were approximately 9,454 homes for sale—a significant increase of 42% from last year and up 5% from last month. This gives us a 2.7-month supply of homes, which means we’re still leaning towards a seller’s market since a stable market is usually considered to have a six-month supply.
Home Prices: Staying Steady
It seems that home prices in Charlotte are keeping steady too. The median sales price came out to be $395,000, which reflects a 3.9% increase compared to the same time last year. On the other hand, the average sale price rose to $502,717, showing a yearly rise of 7.1% and a slight bump of 0.3% over the month.
Seller Challenges
Even with rising prices, sellers are feeling the pinch. Price cuts are on the rise as well, with a staggering 31.6% increase year over year. It seems many sellers are grappling with how to price their homes appropriately in this shifting market.
In summary, this September in Charlotte brought a fascinating mix of declining sales but promising buyer interest. With more homes on the market, adjusting prices, and the influence of interest rates, it will certainly be intriguing to watch how the housing scene unfolds in the coming months. Here’s to keeping an eye on the market together!
