January 14th, 2020 By Daniel Fisher in Blog.
Home sales in the Charlotte area reached a record high last year, even as buyers face higher prices and limited supply, according to new data released Monday from the Canopy Multiple Listing Services.
A total of 50,854 homes were sold last year, a 6% increase from the previous year and a record, according to the data. Thousands of residents have moved to Charlotte in recent years, adding to demand for homes. The previous record was reached in 2017, with 49,084 sales.
And a spate of corporate expansions announced last year, such as a global tech hub for Lowe’s and the merger of BB&T and SunTrust banks into Truist, could create even more competition for the dwindling number of homes for sale.
Because there are so few homes available, the uptick in sales means that homes are being snatched up faster.
“If a house is priced right and maintained well, it’s gone immediately,” said John Kindbom, president of the Canopy Realtor Association/MLS.
The region has just a 1.7-month supply of homes for sale, a decline from 2.4 months the year before. A healthy market should have a six-month supply of homes, experts say.
That supply crunch has meant rising prices: the median sales price rose 7.1% to $255,000 last year.
AFFORDABLE HOMES SHORTAGE
The supply shortage is even more pronounced for affordable homes. There are only around 1,100 homes for sale priced under $190,000 in the 16-county region tracked by the MLS, according to an Observer analysis of the data.
Kindbom doesn’t expect that to change anytime soon, as new home construction has lagged.
“A lot of these major cities that have gone through this change, they are pricing people out of the market,” Kindbom said. “…That’s the danger going forward if we don’t come up with a solution for more affordable housing.”
Charlotte Observer, January 14, 2020