About this time of year, almost every year, people start asking if the real estate market is cooling off. This year it seems like people are asking that question a little more than previous years, probably because the market has been so hot. Inventory remains low, most homes are selling in days or less with multiple offers, and prices are rising at a higher than normal rate. For the first time in history, the average sales price for single family homes in Mecklenburg County crossed the $500,000 mark this May. Yet, I’ve heard much chatter about a coming slowdown in the market.
Seasonally, the market has followed the same pattern year after year in our area. The number of closed sales and prices typically peak at the end of spring or into early summer and they hit a low point in January or February. This cycle has happened every year since I’ve been tracking the numbers, which happens to date back to 2003. This is seasonality and it does appear that 2021 is no exception. However, slowdown is a relative word. When the market slows from a frenzy, it still remains a very busy market.
In a recent interview, the Chief Economist of the National Association of Realtors Dr. Lawrence Yun, said that we are passed the worst of the inventory issues. This suggests that more homes should be coming on the market. However, with Charlotte homes getting 5-10 plus offers, there is definitely still a pent up demand ready to swallow up new listings. That being the case, I don’t see a major downturn in the market any time soon. It is still a great time to be a seller and buyers are still lucky to have record low interest rates available. In my opinion, real estate is still an excellent investment. Did I mention that in June the median sales price was up 21% from last last year??
This week we’ll send out our E-Newsletter and will highlight the key stats for Mecklenburg County home sales, comparing June sales to the previous month and again to the same month last year. You can see all the stats here, http://wrealtygroup.com/blog/, and a brief summary is below.
- Home sales are up 7% from last month and 1% from last year.
- Average sales price was up 1% from last month and 29% from last year.
- Median sales price was up 2% from last month and 21% from last year.
- Average price per square foot was up 1% from last month and 22% from last year.
- Average time on market was down 8% from last month and 69% from last year.
- Pending home sales were down 2% from last month and 10% from last year.
- Supply was even with last month, but down 27% from last year.
- Mortgage rates at 2.98% are even with last month, but down from 3.16% last year.
- Average house payment was up 2% from last month and 26% from last year.
- On average homes sold for 103% of list price in June.
While the market might not quite be cooling off quite yet, you can! Stop by our office this Saturday, July 24 from 2-4 to drop off donations for our Back to School Supplies Drive and get some Ice Cream. Here’s a link with details: 2021 W Realty Group Back to School Supplies Drive. Hope to see you there!