Charlotte Housing Monthly Review – September 2017

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·       KEY HIGHLIGHTS. After a pause price appreciation wise September Average Selling Prices for the Charlotte MSA* rose 4.6% year after year after stalling in August.  However, the trend month to month continues to trend DOWN as prices fell sequentially at an accelerated pace at 6.9% from peak levels and 1.3% from August.  Thus, as mentioned earlier affordability is now weighing on price appreciation.

·       CUMMULATIVE DAYS ON MARKET.  This figure now stands at 43 holding steady from August and down from 49 a year ago.  This figure has been rising since bottoming in May vs hitting 50 in January.

·       AVERAGE SALES PRICE.  This figure remains below record levels at $270,959 vs $290,067 in June when it peaked, falling 6.9% from then.  Prices rose strongly 4.6% year over year and FELL from August’s $274,574.  The year to date average stood at 6.2% higher vs 2016.  The trend in housing prices appreciating in South Charlotte vs North mitigated some as many areas in North counties fell vs South, but areas like Lake Norman showed a nice rebound in September.

·       CLOSED SALES.  This figure fell 4.5% year over year while year to date rose 6.2%.  Closed sales also fell last month.

·       PENDING SALES. This figure remained very strong rising 15.6% year over year while year to date rose 6.8%.  Sequentially, they fell about 10% vs August with seasonal factors in play.

·       MONTHS OF SUPPLY OF HOMES.  This figure held steady from last month at 2.2, but fell year over year by 24.1% from 2.9.  The figure remains near the 2017 low – set in January at 1.9.  Of note areas in northern Charlotte maintain 2-3X higher Months of Supply vs southern regions which explains most of the pricing trends north to south.

·       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.  Further, the month to month declines indicate that as comps get more difficult in 2018 year over year growth could slow.  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.  Higher rates explain these trends which impacts affordability.  Home prices outstripping wage growth also has played a role.

 

Considering Buying a New Home?  Please follow us on Linkedin by searching “Charlotte Consultant Services” for more insight on housing.  We provide contract review consulting services for new construction clientele.  For small business owners we provide business planning consulting services.  Please contact us for further detail or complimentary consultation.

 

Data Source:  Charlotte REALTOR Association. 

*Charlotte MSA is the Charlotte–Concord–Gastonia Metropolitan Statistical Area.

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