Charlotte Real Estate: The Rise of 1% Listing Commissions
December 21, 2023
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In November 2023, the housing market in the Charlotte region faced challenges due to higher interest rates and critically low supply. This resulted in a decline of 12.2% in home sales compared to the previous year, making it the slowest pace since January 2023. The region saw a total of 2,845 homes sold across the 16-county area.
Buyers and sellers alike struggled in this challenging market, as reflected in the 9.9% decrease in sales compared to the previous month. However, there were some positive signs in certain areas. Cabarrus and Stanly Counties, as well as several towns in Mecklenburg County, experienced year-over-year increases in sales.
On the other hand, contract activity showed a promising trend, rising by 3.9% year-over-year for the second consecutive month in 2023. A total of 2,765 homes went under contract, which is an increase from a little over 2,600 homes from a year ago. However, month-over-month contract activity was down by 13.8%.
The report also highlighted the demand for homes in Mecklenburg County, which also rose in November. Despite the overall decline in sales, there were towns within Mecklenburg County that experienced increases, such as Davidson, Matthews, and Mint Hill.
Regarding pricing, home values have been on the rise over the past three years, resulting in increased housing equity for sellers. Several communities around Charlotte witnessed price increases ranging from 2% to 19%, contributing positively to home equity. Matthews, for example, experienced a significant 19% increase in home prices, while Indian Trail's prices were up 5% compared to the previous year. Belmont and Waxhaw also saw price increases of 16%.
In terms of new listings, there was a 3.5% year-over-year increase in seller activity. This marked the first increase in new listing activity in 2023, which is a positive sign. However, compared to October, new listing activity was down by 15.5%. The slowdown in seller activity earlier in the year, combined with rising mortgage rates, impacted the market significantly. However, it is predicted that listing activity will improve in 2024 due to pent-up seller demand.
The housing inventory in the region declined by 14.8% compared to the previous year, resulting in a total of 6,526 homes for sale in November. It is worth noting that there was a slight increase of over 200 homes added to the inventory since October 2023. Despite the increase, supply remained unchanged compared to the previous November, with a supply of 1.9 months.
While prices held steady, the median sales price dipped slightly by 0.8% year-over-year to $379,900. However, the average sales price showed a modest increase of 2.2% compared to November 2022, reaching $453,224. The average list price also increased by 9.4% to $474,082. Sellers received most of their asking prices, as indicated by the original list price to sales price measure, which rose to 96.9%.
The city of Charlotte experienced a decline of 18.1% in closed sales, with 772 homes sold in November compared to 943 in the previous year. Contract activity, however, remained relatively unchanged, with 819 homes going under contract. Sellers in Charlotte listed 979 homes for sale, representing a 4.9% decrease from the previous year. The inventory declined by 22.8% to approximately 1,600 homes, resulting in a supply of 1.5 months.
Overall, the housing market in the Charlotte region remains challenging due to low inventory and rising demand. Buyers seeking homes in Mecklenburg County or Charlotte should expect larger price fluctuations. On the positive side, the condo and townhome market continue to thrive, offering buyers more options.
For Charlotte Real Estate call One Charlotte Realty at 704-670-0000
