On Wednesday, September 18 the Federal Reserve cut the Federal Funds rate by 50 basis points. This was the first cut in over four years. It was expected that the rate would be cut between 25 to 50 points, so it was already priced in to current mortgage interest rates. It is not expected that this particular cut will have an immediate impact on mortgage rates. However, if the Federal Funds rate continues down the path of continued cuts, it will likely impact mortgage rates in the months and year ahead. It is widely anticipated that if rates drop below 6%, there will be a psychological impact on both buyers and homeowners. Lower mortgage rates will certainly make the idea of moving more appealing, especially for those have been putting of a decision for a while.

Looking at the Charlotte market stats for single family homes, it seems the summer selling season has ended and we are moving into the seasonal trend of fewer sales and lower prices. With the bigger picture in mind, there are some signs that the market is slowly moving back in the direction of a more balanced market, after years of sellers having the upper hand. While home sales are down year over year, sales prices are still up healthily. Days on market and inventory are both rising and the sale to list price ratio has fallen below 100 again.

A pattern of lower interest rates may re-ignite the housing market, allowing sellers to keep the upper hand here in Charlotte. In the broader market, the S&P 500 is at an all time high and gas prices are currently on the cheap relative to the last few years. All of this should equate to strong consumer confidence.

As always, the monthly stats for single family homes are available on our website here. Here’s a quick summary when comparing the stats for July 2024 to the previous month and the same month a year ago:

• Home sales are down 9% from last month and 1% from last year.
• Average sales price is down 9% from last month, but up 6% from last year.
• Median sales price is down 8% from last month, but up 3% from last year.
• Average price per square foot is down 2% from last month, but up 4% from last year.
• Sale to list price ratio at 99% is down from 100% from last month and last year.
• Average time on market is up 12% from last month and last year.
• Pending sales are down 4% from last month and 9% from last year.
• Supply is up 7% from last month and 88% from last year.
• Mortgage rates at 6.2% are down from 6.47% last month and 7.2% last year.
• Average house payment is down 11% from last month and 4% from last year.