A Sellers Market with Supply Challenges
Charlotte’s housing market heated up in July. While sales had declined in the spring months as the region responded to the COVID-19 pandemic and shutdown, July 2020 sales surpassed July 2019 sales by about 11%, according to data from Canopy Realtor Association. Prices were up, too, with overall median sales closing at $285,000, a 7.5% increase and average prices reaching $344,991, an 11% increase.
The rising sales and prices reflect a historically tight sellers’ market. Supply of housing is now down to 1.3 months, meaning it would take only 7 weeks to sell every home currently listed. A supply of three to four months, experts say, is more typical.
Slower housing construction coming out of the recession a decade ago, continued migration to the Charlotte Region and historically low interest rates have combined to create this tight supply. While closed sales were up by 11% in July, new listings increased by only 4% and declined in 7 out of 15 regional counties.
We spoke with the Center Director Dr. Yongqiang Chu and Canopy Realtor Association President John Kindbom about the implications of this housing challenge, and possible solutions, on the latest episode of CLT Alliance Talks.
Posted by: Chuck McShane, Senior Vice President, Economic Research @ 12:00:00 am