I feel lucky to live in Charlotte. We are a vibrant and growing city and people around the country are taking notice. According to a recent article in the Charlotte Business Journal, on average, approximately 43 people move here every day! We have an excellent business environment for large and small companies alike and no shortage of things to do and places to eat and shop. So it comes as no surprise that our real estate market is thriving and bucking the national trend.
Just this week, the chief economist at the National Association of Realtors, Dr. Lawrence Yun, reported that nationally home sales were down in May over last year. The national real estate market is slowing down against earlier predictions. In one quote from the article he said:
“Closings were down in a majority of the country last month and declined on an annual basis in each major region,” he said. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”
Here in Charlotte the second part related to mortgage rates and higher prices is 100% accurate. Supply is at an all time low which is pushing prices to new highs. These rising prices combined with rising mortgage rates are are having an impact on sales as evidence by a decline in pending sales (which are a predictor of future home closings). But Charlotte varies from the national trend in that home sales are still up strongly over last year. They were up 19% from April to May and up 7% in May over last year. Charlotte is the place to be!
Each month, we report the local stats for Mecklenburg county on our website. Here’s a brief summary of the latest data comparing single family home sales in May compared to the prior month and the same month last year:
- Home sales were up 20% from last month and 7% from last year.
- Average sales price was down 1% from last month, but up 10% from last year.
- Median sales price was up 2% from last month and 11% from last year.
- Average price per square foot was down 1% from last month, but up 8% from last year.
- Time on market was down 5% from last month, but up 6% from last year.
- Pending sales were down 4% from last month and 13% from last year.
- Supply was up 1% from last month, but down 10% from last year.
- Mortgage rates at 4.59% are up slightly from last month and up from 4.01% last year.
- Average house payment is even from last month, but up 18% from last year.