2015 was a terrific year for real estate sales in Charlotte and as 2016 nears the halfway point, this year appears to be shaping up to look just like last year. The market is still defined by a lack of inventory which is driving low supply, time on market and multiple offers. While sales are strong, year over year demand and prices are starting to slow down to more sustainable levels. For example, home sales for the month of May are only up about 5% from last year and average sales price is only up 1% (Median is up 4%). These kinds of statistics feel a lot more normal as compared to the 10% numbers we have been seeing in recent years. This is a good sign for a long term healthy market.
This week we’ll be sending out our monthly E-Newsletter and reporting the stats for Mecklenburg County. Here’s a quick summary when comparing May 2016 to both the prior month and the same month last year:
- Home sales are up 6% from last month and up 5% from last year.
- Average sales price is up 3% from last month and up 1% from last year.
- Median sales price is up 7% from last month and up 4% from last year.
- Average price per square foot is up 2% from last month, but down 2% from last year.
- Average time on market is down 21% from last month and down 27% from last year.
- Pending home sales are up 2% from last month and even with last year.
- Supply is up 7% from last month but down 15% from last year.
- Mortgage rates remain steady from last month and are slightly lower than they were last year.
- The average monthly house payment is up 3% from last month, but down 2% from last year.
It is still a strong sellers market, but as the summer market begins sales are likely to slow. The good news for buyers is that interest rates still remain low. So while prices are back to peak levels right now, monthly payments still remain reasonable. And there will be opportunity for buyers to capitalize on the seasonal slow down this fall.