Charlotte NC housing market summer 2023 report

[Kai Kopsch]

Average sales prices ticked up by +4.6% again in Charlotte. This brings us to the main problem in the housing market the affordability of starter homes and median-priced homes. The Housing affordability index for May 2023 is 85, just two years ago, the affordability was 143 ( A higher number means greater affordability)

Most homes under 200K with small repair needs still get multiple offers; there are a lot of investors competing with outpriced first-time home buyers. Homes 400K to 500K don't sell anymore fast because it's often 50% cheaper to rent the same house. We still have too many rental SFH on the market due to the cash buyer boom from 2021. Upscale homes 750K+ in good neighborhoods still go under contract in a few days because financing isn't an issue for buyers 1M+.

In the Charlotte region, new listings have decreased by 25.4% to 4,568, and pending sales have decreased by 13.1% to 4,329. On the other hand, inventory has grown by 6.7% to 4,667 properties. The months' supply of homes for sale has increased by 44.4% to 1.3 months, suggesting a rise in supply relative to demand.

While fluctuating interest rates have discouraged some buyers, the shortage of inventory is also a contributing factor to lower-than-average home sales. Current homeowners, who secured mortgage rates significantly lower than the present rates, are delaying their decision to sell until market conditions improve. As we enter May, there is only a 2.9 months' supply of available homes, resulting in a fast-paced market. The typical home spends slightly over three weeks on the market before being sold.