Seasonality of Charlotte Real Estate Market Returns

Last month there was an unusual jump in the average sales price of homes in the Charlotte area.  It was unusual because as we head into the deep winter months, we generally see a slowing of home sales and a seasonal drop in prices.  I thought that perhaps the pattern of seasonality that I’ve personally witnessed here in Charlotte over the last 15 years was about to be broken.  But alas, seasonality is alive and well as January home sales have dropped back to the lowest levels since last year and prices have fallen well below the summer peak.

In July of 2017, the average sales price in Mecklenburg County reached an all time high of $344,487 but has dropped back down to $320,590 in January of this year.  This reflects a seasonal price drop of almost 7% from the peak.  Typically the lowest average sales price we see in a calendar year occurs either in January or February, so we’ll know in a few more weeks if we’ve hit bottom for this year.

Low inventory levels still define the local market and this will continue to drive prices higher year over year.  As we head into the busy spring market, assuming the inventory stays low, I expect Charlotte prices to reach another record high later this summer.

This week we’ll send out our monthly E-Newsletter including the full stats for Mecklenburg County Single Family home sales.  Here’s a quick summary of the results comparing January of this year to both the prior month and the same month last year:

  • Home sales are down 31% from last month and 6% from last year.
  • Average sales price is down 6% from last month, but up 4% from last year.
  • Median sales price is down 8% from last month, but up 8% from last year.
  • Average price per square foot is down 2% from last month, but up 7% from last year.
  • Average time on market is down 11% from last month and 18% from last year.
  • Pending sales are down 2% from last month and 29% from last year.
  • Supply is up 10% from last month, but down 13% from last year.
  • Mortgage rates are hovering around 4.0% which is relatively stable both from last month and last year.
  • The average house payment is down 5% from last month, but up 3% from last year.



Leave a Reply

Your email address will not be published. Required fields are marked *