Charlotte Market Update January 2022
Charlotte Housing Market: Prices | Trends | Forecasts 2022
January 3, 2022 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 October 2021. Low mortgage interest rates, high demand, and a shortage of homes continue to fuel the Charlotte real estate market and drive prices higher. Charlotte is a magnet for newcomers, which means there will be enough demand to keep home prices from falling too far. It 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. While inventory remains scarce, experts believe it will improve in 2022 as sellers who waited until 2020-2021 will to go to market. In 2022, both home prices and interest rates are expected to increase, which means spring 2022 will be less frenetic than spring 2021. Conditions for buyers are likely to improve in comparison to 2021 and 2020.
Charlotte Housing Market Trends & Forecasts 2022
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 October 2021, the median list price of homes in Charlotte, NC was $369,900, trending down 10.7% year-over-year. The median listing price per square foot was $199. The median sale price was $350,000
The sale-to-List Price Ratio was 101.03%, which means that homes in Charlotte sold for approximately the asking price on average in October 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 October 2021 to October 2020. On average, homes in Charlotte MSA sell after 16 days on the market.
The trend for median days on the market in Charlotte has gone down by 40.7% 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.