Peak Prices in Charlotte Edge Up Again

Last month I reported that the average sales price in Charlotte hit its all time high based on closed sales in May. Well, June sales are in and prices are up again. The average sales price for June 2013 was $289,947 which is up 5% over the same month last year. The median price (also at an all time high) jumped 10% from last year to $219,495.

Even though average price has peaked, many homeowners are still selling below where there value was in 2007-2008. This begs the question that perhaps the data is skewed and that more higher priced homes are selling which causes the average price to appear higher.

This month we’ve decided to add some new statistics to our monthly E-Newsletter marekt stats segment to help. The new stats include:

1) Average square footage of closed sales – This stat is meant to validate (or discredit) the idea that perhaps buyer patterns are trending towards larger homes which is causing average price to appear higher. But the data shows that the average square footage has remained relatively constant over the past year.

2) Average price per square foot of closed sales- This stat helps to normalize the data and give a better picture of how prices are truly rising or falling. Based on average price per square foot, prices in Charlotte as of June are up 7% which is right in line with the increases seen based on Median and sverage sales price.

3) Average mortgage payment for a home using the current month’s average price and interest rate. This information is unrelated to price gains, but we though it to be a good stat to report because it shows affordability. The intention with this stat is to demonstrate how BOTH price and interest rate impact affordability. It also shows how getting a good price on a home may have less impact on a buyer’s budget than the interest rate they get with financing. Interestingly, these numbers show that affordability based on June prices and rates is back to levels from early fall 2008 (just prior to the market crash). Affordability was at an all time high in February 2012 – the best time to buy has passed.

For details on all of the market stats including these three new ones, check out our E-Newsletter. In the meantime, here’s a sneak peak of the data for June 2013:

– Home sales are up 27% from a year ago.
– Average sales price is up 5% from a year ago.
– Median sales price is up 10% from a year ago.
– Average time on market is down 21% from a year ago.
– Pending home sales are up 15% from a year ago (but they are down 10% from last month – the market is slowing.)
– Supply is down 29% from a year ago.
– Rates are up to 4.07% – the highest they’ve been since October 2011.
– Average mortgage payment is 12% higher than it was a year ago.
– Average square footage of homes sold is down 2.2% from a year ago.
– Average price per square foot is up 7% from a year ago.

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