Pending home sales are up again in the Charlotte area, continuing a trend that parallels the increase in area home prices. According to data released by Carolina Multiple Listing
Charlotte Area Home Supply Drops In August
Local real estate inventory plunged 18.6 percent in August from the previous year while home sales declined 3.8 percent, according to information from the Charlotte Regional Realtor Association. The Association releases monthly housing reports based on Carolina Multiple Listing Services data.
The data also shows that Charlotte area housing stock maintained its 2.6-month supply, or 10,153 homes on the market; however, this is down from a 3.4-month supply, or 12,477 properties for sale, in August 2016, the association said on Monday.
"While inventory remains lower than the previous year, we're not experiencing the same downward trend in contract activity that's being reported nationally," CRRA President Roger Parham said in a statement. "Also, the recent uptick in new listings that's occurred over the last four months should help fuel buyer interest."
We tend to agree with Mr. Parham, as gains in home values have helped push more homeowners to list their properties on the market. Plus, with Charlotte's popularity continuing to grow, developers are doing their best to keep pace with demand by expanding communities and building new homes.
Nevertheless, inventory remains tight, particularly for the starter homes and lower priced properties. According to the Charlotte Business Journal, less than 4,300 homes sold in August. While this was slightly more than the recorded closings for July, home sales have otherwise declined on an annual bases since March.
In the real estate industry, an inventory supply of six months is considered to be indicative of a balanced market between buyers and sellers. Anything less than a six-month supply indicates a seller's market and anything more than a six-month supply indicates a buyer's market. Currently, the Charlotte area real estate market is at 2.6 percent - that's significantly lower than the six-month supply needed for a balanced market.
Wondering when the inventory levels will rise and supply and demand will balance out? According to Parham, it could take "another couple of years." However, he also said we could see more listings hit the market in the fall, somewhat easing the imbalance.
"I anticipate there will be some relief, because historically (in) the fall months, normally sales decline a little bit more than they do during the summer months and therefore, builders have a little time to catch up with some of the inventory," he said. "But just like it took us a long time to get into this mess, it's going to take us a while to get back out of it."
Want to read more about Charlotte real estate inventory trends? Check out the article in the Charlotte Business Journal. Ready to talk to someone about listing your Charlotte home for sale? Or hoping to connect with an experienced buyers agent? Contact the Talk Charlotte team today: (704) 419-8644
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