The Charlotte real estate market finished strong in 2020 with key indicators suggesting that this new year is going to continue in the same pattern. In December compared to the prior year, home sales were up 13%, average price was up 11%, time on market was down, interest rates were down, and pending sales were up a whopping 48%. The pending home sales statistic is the most dramatic suggesting that we will see a huge jump in closed sales for this January and February as compared to last year.
I’m often asked about the outlook for the market this year along with questions why the real estate market is so strong amidst a pandemic. The answer is really pretty straightforward. This time last year, the market was already strong, and the supply of ‘for sale’ housing was limited. Then in March, the coronavirus took over life as we know it. From there people’s lives changed. We began working from home and schooling from home. But not only that, we couldn’t eat out anymore or go on vacation. So we started eating at home and “vacationing” at home. These new requirements meant that people would need more room, and they wanted new amenities like swimming pools.
The home improvement industry exploded, and for those that couldn’t make their current home work, it was time to move. All of this coupled with incredibly low interest rates and already low supply inventory, and the result was a real estate market that has carried the economy through pandemic. What’s more is that even though home prices are soaring, the average house payment remains about the same because of the lower rates. This means the market is good for both buyers and sellers, which is not an environment we are likely to see very often.
With substantially more demand than there is supply, the strong market is likely to continue with no signs of slowing. This week we’ll send out our monthly E-Newsletter reporting the December single family real estate market stats in Mecklenburg County to both the prior month, and the same month last year. Here’s a sneak peak:
- Home sales are up 9% from last month and 13% from last year.
- Average price is even with last month, but up 11% from last year.
- Median sales price is even with last month, but up 11% from last year.
- Average price per square foot is down 1% from last month, but up 13% from last year.
- Average time on market is even with last month, but down 52% from last year.
- Pending home sales are down 12% from last month, but up 48% from last year.
- Housing supply is down 17% from last month, but up 2% from last year.
- Mortgage rates at 2.68% are about even with last month, but down from 3.72% last year.
- Average house payment is down 1% from last month AND 1% from last year.