Homes Sales Drop For The First Time Since The Start of The Pandemic

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Stalled job recoveries and fast-rising coronavirus cases along with stricter lockdowns have led to significantly weakened consumer confidence, resulting in the first existing-home sales decline since the start of the pandemic, according to a new report by the National Association of Realtors (NAR).

“Total existing-home sales (completed transactions that include single-family homes, townhomes, condominiums and co-ops) decreased 2.5% from October to a seasonally-adjusted annual rate of 6.69 million in November.”

The report noted that regionally, the South fared the worst. Existing-home sales dropped 2.2% in the Northeast, 2.5% in the Midwest, 3.8% in the South, and remained unchanged in the West.

Here in Charlotte, we saw existing home sales decline by 13.73%, from 3,655 in October to 3,153 in November.

“November sales declined for the first time during the pandemic, which we predicted three months back, as leading indicators were showing that demand was not as high as people expected, but rather, supply was very low,” said Charlotte Realtor and former economist David Hoffman with the David Hoffman Group. “As soon as the country started opening back up, more people began listing their homes and less focused on finding a home, and instead; getting back to work, and going back on vacations.”

While home sales and prices are still up on a year-over-year basis, last month’s sharp decline could be an ominous sign for the future of what many believe to be a real estate bubble.

What do you think about the state of Charlotte’s real estate market? 

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