The Spring Charlotte housing market is in full swing so it’s time to check-in to see how things are going. In a word: tight; due in part to the lack of supply. The last time that Charlotte had a housing supply greater than 5 months (meaning that it would take 5 months to sell every house for sale in the the market) was back in November 2012. Ever since November 2016, the housing supply has been less than 2 months, which is beyond historically low.
As a result, home prices are up 8.4% over this time last year with the average selling price for a home in Charlotte now standing at $276,700; well beyond the previous peak in 2008. According to the rental site Zumper, rent for a 2 bedroom unit increased 8.8% year-over-year for the same time period.
Ask any home buyer in the market and they’ll tell you that homes that are priced right and look good are selling fast. Last month, the median Days on Market for a home fell to a ridiculous 6 days; with the average sitting around 30 days. That’s not a lot of time and given that the average home has only 6 showings prior to receiving an offer, Sellers are receiving 99.7% of their asking price.
Okay – that’s the general story on Charlotte but let’s dive deeper. Is everyone really selling in 6 days for almost asking price?
The condo market has historically lagged behind the single family market and it also took the biggest hit during the recession. As a result, there haven’t been very many new condo units added since 2007 and demand is driving up cost here as well. Last month, 43 condos closed in Uptown at a median of 97.9% of the original asking price. The median price for a condo last month in Uptown: $298,500 – up 16.1% from the year prior.
The Luxury Market (over $1m)
The luxury home market over $1,000,000 is also experiencing a bit of a resurgence. Last month, sales were up 52% with 38 homes closed at a median of $1,451,250. That was an increase of 16.7% from the year prior. Sales aren’t as brisk but the average days on market was 71 and the supply remains fairly plentiful at 10 months. That’s not uncommon for this price point and is in-line where the market was a decade ago.
Emerging Neighborhoods in 28208
The lack of housing supply has led to renewed interest in neighborhoods North and West of Uptown, many of which have been overlooked for decades. 28208 contains a portion of the 5 Points neighborhoods of Seversville, Wesley Heights, Smallwood and the Free More West neighborhoods of Ashley Park, Camp Greene and Enderly Park. Last month, median home prices rose 11.2% to $125,000 with 34 homes sold. Sellers received 99% of their asking price and the months supply has dropped 24% to just 2.4.