November 2016
A Predictable Market, Even with Declining Inventory
(Reprinted from October 2016 CRRA Monthly Indicators)
As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
New Listings were up in the Charlotte region 2.7 percent to 4,150. Pending Sales increased 26.4 percent to 3,984. Inventory shrank 23.1 percent to 10,570 units. Prices moved higher as Median Sales Price was up 12.7 percent to $209,690. Months Supply of Homes for Sale was down 30.0 percent to 2.8 months, indicating that demand increased relative to supply.
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.
The Vitals:
A Look at Charlotte's Overall Real Estate Market
[caption id="attachment_14457" align="aligncenter" width="653"]
Monthly Average 30-Year Fixed-Rate Mortgage Rates as reported by www.freddiemac.com[/caption]
- Measuring October of 2015 to October 2016, Charlotte’s lack of inventory has continued with inventory decreasing to 23.1%
- Contrasting October 2015 to October 2016, pending sales rose to 26.4%
- Months supply of inventory fell slightly to 2.8 for October 2016; this indicates the market is still favorable for the seller. A balanced market is 6 months supply of inventory.
Residential Closings for the Entire CMLS Area
October 2015 - October 2016
