Single family home sales in Mecklenburg County have been slowing for almost two years now. The number of sales this past May was 15% lower than the same month in 2022. Don’t that let confuse you about the state of home prices and real estate as an investment. Even though there have been fewer sales lately, the low supply has not yet caught up with demand and prices continue to rise.
This past May the average sales price for a single family home hit a new record of $657,347 which is a 13% increase over last year. The median home price also hit a record high of $480,000 which was 3% higher than the previous year. The significantly higher percentage increase for average price can be explained by a larger than usual number of very high homes in the $3M+ range. Either way you look at it, home prices are still on the rise in Charlotte and have officially hit new record highs.
It is typical for prices to rise in the spring and reach peak levels for a calendar year in the May through July timeframe. We’ll be watching closely over the next few months to see if the increases peak in May or keep going throughout the summer.
In writing today’s post, I had some fun looking back on old posts a year ago, and two year’s ago. Looking at the perspective during those time periods when then number of sales was just starting to slow, the message we were hearing from buyers was, “we are going to wait out the market until prices come back down.” Unfortunately neither prices nor rates have decreased. Those who took the leap and bought a home during those times have been rewarded nicely. Such is real estate. Now is always the best time to buy. What do you think?
For a quick summary of the full market stats for May, comparing single family home sales in Mecklenburg County to the same month last year, you can always visit out stats page. I’ve also provided a summary below:
- The number of home sales is up 17% from last month, but down 15% from last year.
- Average sales price is up 10% from last month and 13% from last year.
- Median sales price is up 5% from last month and 3% from last year.
- Average price per square foot is up 3% from last month and 7% from last year.
- Sale to list price ratio is 100%, which is the same as last month but down from 104% last year.
- Average time on market is down 11% from last month, but up 244% from last year.
- Pending home sales are down 8% from last month and 29% from last year.
- Supply is up 9% from last month and 25% from last year.
- Mortgage rates at 6.69% are up slightly from last month and up from 5.23% last year.
- Average payment is up 14% from last month and 32% from last year.