We are already two months in to 2016 and we’ve come off another very strong year for real estate sales and prices in in the Charlotte area. Lack of supply continues to define the market and appears to be driving prices upwards. But after several years of strong growth in demand and prices, will this trend continue? It is an election year and the stock market shows some signs of uncertainty. But our real estate market is still driving forward.
Each year we experience a “seasonal” effect on demand and prices. The market tends to peak in June/July and it bottoms out in January/February. That appears to be the case once again this year as January closed units and prices have fallen consistently since last summer. However, as is the case every year, they are likely to climb from this point forward to what is likely to be new peaks this summer. Based on the low inventory and consistent demand, I think its fairly safe to say that prices will hit new highs this summer.
This week we will publish our E-Newsletter with market stats for Mecklenburg County Single Family sales in January as compared to both the prior month and prior year. The key trends to note are that prices are up due to a lack of supply, but the pace at which sales have grown seems to be leveling off. Pending home sales are about the same this year as they were last year which indicates that the early part of 2016 is likely to be similar to last year.
Here is a complete summary of the stats:
- Home sales are down 36% from last month and 6% from last year.
- Average home price is down 2% from last month but up 5% from last year.
- Median sales price is down 2% from last month but up 8% from last year.
- Average time on the market is up 20% from last month and 3% from last year.
- Pending home sales are up 24% from last month but even with last year.
- Supply is up 8% from last month, but down 21% from last year.
- Mortgage rates are about even with last year and up only slightly from last year.
- The average monthly house payment is down 3% from last month, but up 8% from last year.