This past week our listings saw an average of 1.4 showings each. Overall, the showing traffic has been a little lighter than we’d like to see. But it does seem that the quality of the showings has improved quite a bit and that is reflected in the latest market data for the Charlotte area.
This week we’ll publish our monthly E-Newsletter and will include the market stats for Charlotte in June. Here’s a peek at the changes since the prior month and again when compared to the same time last year:
– Home sales were up 8.8% from last month, but down 11.9% from a year ago.
– Average price was up 3.7% from last month AND up 4.6% from last year.
– Median price was up 4.1% from last month AND up 1.4% from last year.
– Days on market was about even with last month, but up 9% from last year.
– Pending home sales were down 2.9% from last month, but up 22.55% from last year.
– Housing supply is down 7.9% from last month, but up 4.4% from last year.
– Mortgage rates are down from both last month and last year. Right now they are at their lowest levels since Nov 2010.
Overall, the numbers for June look strong and show nice signs of a growing market. The best news is the strong jump in pending home sales from last year. This can be attributed to the expiration of the tax credits last year. Remember, that the home buyer tax credits expired in April of last year. Immediately after that happened, pending home sales fell sharply. This year, with no tax incentives in play, pending home sales have held relatively firm. This is an indication that the second half of 2011 is going to be far stronger than the second half of 2010. My personal pipeline for the second half of this year, supports that. Business is picking up and will hopefully remain steady.
The second great piece of news in the June data is the consistency in price appreciation shown through both the average price and the median price. Both of these numbers have increased steadily since January. Based on the patterns I’ve been tracking since 2003, it seems that seasonally prices seem to peak in the summer months and they bottom out in January or February. So it makes sense that we’ve seen a continuous rise since January. Hopefully, we’ll see a little bit more upward price movement into August before they drop back down. More importantly, my hope for the rest of 2011 is that the price declines likely this fall and winter will be moderate giving us a higher baseline in February for strong growth in spring of 2012.
There is definitely a lot more confidence in the real estate market now than there was in either of the past two years. Buyers are back for sure, but they are seeking deals. Properties are moving, but only for those sellers committed to selling based on today’s market values. As the volume of sales continues to grow, so will prices.