When a tidal wave comes ashore and crashes there are always more large waves that follow for awhile until things finally settle down. The recession of 2008 was that tidal wave and the oscillation of waves that have slowly gotten smaller in amplitude over time has finally started to settle. The latest wave was in 2013 and the result was a 10-15% increase in area prices and diminished supply. Based on the most recent Charlotte market stats it appears that wave has ended and things are cooling off.
This week we will send out our monthly E-Newsletter with a link to the Charlotte Market Stats for April where we compare the numbers for April 2014 to the prior month and again to the prior year. Here’s a quick summary:
– Home sales are up 10% from last month but down 8% from last year.
– Average sales price is up 4% from last month but down 1% from last year.
– Median sales price is up 4% from last month and up 6% from last year.
– Average time on market is down 13% from last month and down 8% from last year.
– Pending sales are up 5% from last month but down 13% from last year.
– Supply is up 9% from last month and up 6% from last year.
– Mortgage rates are even from last month at 4.34% but they are up from 3.45% last year.
– Average housing payment is up 4% from last month and up 11% from last year.
The key stats that point to the cooling off are the slow down in home sales and pending sales. Prices are still up and show some growth and that’s expected because prices tend to lag sales. Ultimately, this slowdown is a good thing for the market as it comes back into balance. We are returning to a place where buyers and sellers are on an even playing field. We once considered that to be normal but after so many years of craziness, it certainly doesn’t feel that way.