Charlotte Market Steady, but Demand is Slowing

Its June and the Charlotte market is about through the busy spring season.  The numbers show that this year is turning out to be similar to 2013 which means that percentages are showing little change.  Today we are sending out our monthly E-Newsletter and have published the market stats for May.  Below is a summary when comparing the May stats to the prior month and again to the same month last year.

– Home sales are up 22% from last month, but down 1% from last year.

– Average sales price is up 6% from last month, but down 2% from last year.

– Median sales price is up 3% from last month and up 5% from last year.

– Average time on market is down 17% from last month and down 21% from last year.

– Pending home sales are even from last month, but down 11% from last year.

– Supply is down 1% from last month, but up 4% from last year.

– Mortgage rates are down slightly from last month, but up 3/4 of a point from last year.

– The average housing payment is up 4% from last month and up 6% from last year.

These stats show that the market has stabilized and signs show that trend will continue.  With home prices up and interest rates up, we will most assuredly see a softening of demand.  The pent up demand from years of recession is beginning to wane and increased prices are causing buyers to become a little more indifferent.  The pressure to buy now is slowing because its getting more expensive.

This is a critical point for sellers of real estate.  The market is coming into balance from a time when buyers felt a frenzy to act.  Now the buyers are being more cautious.  When pricing a home to sell, owners can be optimistic that there are plenty of buyers out there.  However, they can no longer look at comparable sales and mark their home up by a premium.  Pricing in today’s market is about looking at comparable properties and pricing in line with those.  That’s the way to win in 2014.  The market is balanced so buyers and sellers are finally back on even ground.

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