Charlotte Real Estate Prices Double in Just Over Five Years

The average price for a single family home in Mecklenburg County just hit another all time high of $676,888 in May this year, according to the Canopy MLS. It was only January of 2019 when that same stat was $325,816 which means that in just under 5.5 years, the average price has doubled. For those who like percentages, that is a an average annual rate of return of 13.25% during that time period.

Having always been the data geek I am, I started keeping track of single family sales stats shortly after entering the business in 2003. This means I’ve now been personally tracking the numbers monthly for 20 years. Twenty years ago, in 2004 the average sales price for a Mecklenburg County single family home was around $220,000. (I started tracking in September that year and the average sales price was $218,000.) It took 17 years for that $220,000 to double; the average price hit $477,529 in March 2021.

The rate of real estate appreciation from 2004 to the high price of $676,888 this May is 5.78% So while 13.25% seems unrealistic and unstainable, the 20 year return is more realistic. I remember early on in the business, I came to expect appreciate rates of 3-4% in our area. I was always amazed that appreciation in the west coast states always seemed to be much higher. Well, I have also found that real estate trends tend to happen out west before moving east.

I think its fair to say that real estate prices are unlikely to continue to increase at 13% per year. But there is no sign of slowing right now. Higher interest rates do not seem to be stopping people from buying as inventory remains in “sellers market” territory. While the supply numbers do appear to be slowly creeping upwards, our clients continue to experience multiple offers on well priced homes in ready condition.

There is a saying that the best time to buy real estate was five years ago and the second best time is right now. Well, with prices doubling in five years, the first part is certainly true. What will we all be thinking five years from now?

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 May 2024 to the previous month and the same month a year ago:

  • Home sales are up 18% from last month, but down 4% from last year.
  • Average sales price is up 2% from last month and 3% from last year.
  • Median sales price is up 3% from last month and 4% from last year.
  • Average price per square foot is even with last month, but up 7% from last year.
  • Sale to list price ratio remains at 100%, same as last month and last year.
  • Average time on market is down 7% from last month and 19% from last year.
  • Pending sales are down 4% from last month and 11% from last year.
  • Supply is up 19% from last month and 88% from last year.
  • Mortgage rates at 6.95% remain fairly steady from both last month and this time last year.
  • Average house payment is up 1% from last month and 6% from last year.

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