• KEY HIGHLIGHTS. The Charlotte housing market is starting to cool somewhat especially price appreciation wise. Average selling prices in August for the Charlotte MSA* rose less than a 1% – the lowest LEVEL for 2017 and in many areas it fell. Also Cumulative Days on Market continued its trend, rising to its highest level since May 2017.
Although Pending Sales remain well above trend lines, closed sales have fallen in 2 of 3 past months. However, there has not been any significant upward pressure on Months of Supply recently. Thus, as mentioned earlier affordability is now weighing on price appreciation.
• CUMULATIVE DAYS ON MARKET. This figure now stands at 43 down from 49 a year ago, UP 2 pointsfrom July’s 41. This figure has been rising since bottoming in May vs hitting 50 in January.
• AVERAGE SALES PRICE. This figure fell from record levels at $274,574 vs $290,067 in June when it peaked, falling 5% from then. Prices rose ONLY 0.6% year over year and fell from July’s $282,736. The year to date average stood at 6.3% higher vs 2016.
The trend in housing prices appreciating in South Charlotte vs North continued as many areas in North counties fell vs South.
• CLOSED SALES. This figurefell 3.8% year over year while year to date rose 6.5%.
• PENDING SALES. This figureremained very strong rising 14.2% year over year while year to date rose 7.1%.
• MONTHS OF SUPPLY OF HOMES. This figure held steady from last month at 2.2, but fell year over year by 26.7% from 3.0. The figure remains near the 2017 low – set in January at 1.9.
• COMMENTARY. The declines in Average Selling Prices from the peak set earlier in the year locally here in Charlotte must be looked at in context of nationwide data.
New home sales, pending home sales and existing home sales all are down from levels set earlier in the year despite mortgage rates declining vs earlier in year…a disturbing trend.
Why? Because the Federal Reserve is expected to continue to raise rates thru 2018.