What is happening in the Charlotte real estate market as we start the spring selling season?
A lot has transpired over the last three months in the Charlotte real estate market. What’s happening as we enter the second quarter and the spring selling season?
So far, the second quarter is off to a strong start. New listings increased by 6.1% in the first week of the second quarter, with 1,471 new listings on the market. Pending sales also increased by 15% with 1,250 homes under contract at the start of the second quarter. So, buyers are out there and looking to make a deal.
The big issue in our market right now is housing inventory. Inventory dropped 19.3%, with only 9,360 homes available on the market. As a result, home prices are on the rise and buyers often find themselves in multiple offer situations.
As the first quarter ended, the average sales price went up 10.3% to $271,166. Days on market has dropped to 55 days, and we only have 2.5 months of inventory on the market, which places us in a strong seller’s market.
Despite all of this, sellers still aren’t getting out there and listing their homes. Even if you are not thinking of selling your house for another three to five years, you need to know that the market is strong right now. Plus, those historically low interest rates are starting to tick up to the mid-4% range; some loans are already at 5%. All market indicators show that interest rates will only continue to rise.
If you have any life-changing moves in the next couple of years, it’s a good idea to explore your home selling options right now; prices are back to where they were in 2006 and interest rates won’t be this low for much longer.
The good news for buyers is that the housing affordability index is still strong at 135, which means that the median income in our area is 135% of what it takes to buy a median-priced home in the Charlotte market. That is great news because, in our community, rents continue to skyrocket.
Whether you are exploring your options for selling or trying to find a home in this competitive market, we are here to help you. If you have any questions, just give us a call. We look forward to hearing from you!