Charlotte Housing Market: Prices | Trends | Forecast 2021-2022
September 4, 2021 By Marco Santarelli
The homebuyers in the Charlotte housing market have dealt with a persistent seller’s market, which has shrunk inventory and driven up home prices. Charlotte’s real estate market continues to boom without being affected by the pandemic. Homes are selling quickly, inventory is low and prices are rising fast. Last year was the eighth consecutive year of home price gains. The supply of homes for sale in the Charlotte MSA has now dropped to its lowest level in 17 years. There’s just a little more than two weeks of inventory left.
Continuing the Charlotte-area housing market’s hot streak, home sales and the median price paid for those homes rise in February. Low mortgage interest rates, high demand, and a shortage of homes continue to fuel the Charlotte real estate market and drive prices higher. Due to a long Covid led shutdown, there has been pent-up demand. Charlotte is seeing an influx of new residents from expensive cities in the North and West. There’s an influx of buyers from California, Chicago, New York, New Jersey, and Connecticut. Here are the latest housing indicators for this region.
Charlotte Housing Market Trends & Forecasts 2021 – 2022
According to Realtor.com, Charlotte is a seller’s real estate market, which means there are roughly more buyers than there were active homes for sale. The demand for housing outpaces the supply. In July 2021, the median list price of homes in Charlotte, NC was $360K, trending up 11.4% year-over-year. The median listing price per square foot was $195. The median sale price was $345K.
The sale-to-List Price Ratio was 101.88%, which means that homes in Charlotte sold for 1.88% above the asking price on average in July 2021. Ideally, a buyer would prefer a sale to ask price ratio that’s closer to 90%. The sellers in Charlotte have managed to hold good leverage in these negotiations in the past month. A seller would always prefer scenarios that can yield a ratio of 100% or higher.
The following analysis of the Charlotte housing market has been prepared by the “Canopy Realtor® Association.” The figures are for the ten-county Charlotte MSA which includes Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, and Union Counties in North Carolina and Chester, Lancaster, and York Counties in South Carolina. The report compares key housing statistics of the Charlotte MSA from July 2021 to July 2020. On average, homes in Charlotte sell after 13 days on the market.
The trend for median days on the market in Charlotte has gone down by 62.9% since last year. In a healthy, balanced market, it would take about six months for the supply to dwindle to zero. In terms of months of supply, the Charlotte market can tip to favor buyers if the supply increases to more than six months of inventory. However, looking at the current trends, we don’t see things stopping anytime soon. The current inventory of homes equates to 0.8 months of supply — a sign of a hot seller’s real estate market.