Charlotte Inventory Data June 2022

[Laura Shinkle]

Hi everyone, 

With the talk of a shift on everyone's mind, I thought I'd share some hard data for the area. 

We look at supply as an indicator of what type of market we're in. 6 months of inventory is considered a 'balanced' market, where neither the seller nor the buyer have an advantage in negotiation. More than 6 months is a buyer's market, less than 6 months, a seller's market. For perspective, 2012 was the lowest point for Charlotte housing market after the recession in 2008. In April 2012 we had over 11 months of inventory. At our lowest point, we were at less than 1 month! (February 2022). 

In the Charlotte Metro, months supply of inventory has gone UP consistently in the last 3 months. We're still super low (1.4 months for June) but that gives me hope that the craziness of the last 3 years is easing up. 

Is a bubble bursting here? I don't think so. A bubble bursting would look like prices going down. They're not. Average and Median prices are still climbing, albeit at a slightly slower pace than last year. We're still solidly in a seller's market and will be for a while until inventory comes up, giving buyers more options. 

I'd love to hear what you're seeing in the market!

[Evans Wright]

Quote from @Tim G.:

I am seeing inventory climb, CLT seems to be a bit behind schedule compared to PHX, Dallas, Socal, Florida, Seattle areas on how fast its growing. Big areas of concern for me in CLT are Lake Norman area and the outskirts. CLT has a large mortgage lending / banking industry that is likely to be hurt in this downturn. 

I personally would not buy a flip or any investment property in any market in the US without planning for a 10-15% price reduction when it comes time to sell it based on current comps. 

Tim,

Could you elaborate further on your comment of why you think the banking industry is going to hurt in Charlotte?  It is such a huge sector here and in my opinion continuing to grow but I would definitely want to understand it from your perspective.  Thanks!