The October 2019 residential real estate figures are out for Mecklenburg county and I can guess that the press release headline will read something to the effect of “sales rose 19.9% in October due to low mortgage interest rates and high demand”. That’s accurate but lacks a lot of context. Here’s that context:
First, sales in Charlotte and Mecklenburg County did rise 19.9% to 1,891 homes closing during October. Sales had fallen during the same period in 2018 7.6% from 2017 due in part to a looming government shut down (shut downs tend to slow sales of government insured loans like FHA and VA mortgages). Compared with the same period in 2017, this October’s home sales numbers were quite good: up 10.8%. However, in October 2006, 1,865 homes closed in Mecklenburg county and that’s when the population was 30.5% smaller than it is today.
So to recap: 30.5% more people live here now yet we’ve just now sold 16 more properties than 13 years ago.
It’s not due to a lack of demand. Supply of housing in all of Mecklenburg County is only 2.1 months and the median home price rose 6.9% year-over-year to $264,995. For many homeowners, it takes 13 showings to receive that first offer and homes are selling at 96.4% of asking price.
Pending home sales throughout Mecklenburg also had a massive leap over 2017, skyrocketing 29.3% year-over-year but only up 15.6% compared to the same period in 2017 (impact of the government shut down).
As Charlotte is the largest city in Mecklenburg County, sales figures can be skewed slightly when viewed on the whole. Huntersville, for example, experienced a 38.4% gain in pending home sales but that only amounted to 155 properties under contract. Same holds true for the other cities adjacent cities: substantial gains over the prior year due in some part to the sales being impacted slightly by the government shut down. I’ll provide a more thorough breakdown at the end of this post.
What About Condos and Townhouses?
As Single family homes are the majority of sales in the Charlotte area, condos and townhouses (lumped together in our MLS) tend to get overlooked. Sales of Condos and Townhouses were up 18.2% year over year with 436 units closing last month. That’s also 3.3% higher than 2017. As a result, monthly supplies of condos and townhouses in inventory are flat but only 2.1 months.
Units are on the market just 33 days before going under contract and receive around 15 showings before an offer that is agreeable to the Seller is reached. The median home price of a condo townhome in the Charlotte area is $222,250, up 12% from the year prior and Sellers are receiving 97.5% of their asking price.
What about Luxury Homes?
As most of the homes that sell in the Charlotte area are closer to the Median home sales price of $265,995, the market for homes priced significantly above that is very different. Where as the median housing market has around a 2 month supply of housing, for homes priced between $500,000 – $1,000,000 there is 3.6 months supply and grows to 6.3 months for homes priced $1,000,000 – $2,000,000. Over $2,000,000 exists a scant (tongue in cheek) 13.3 months supply, which is down 31% from the year prior. In real numbers, only 8 properties over $2m sold last month while 51 closed between $1m – $2m, and 187 between $500,000 – $1,000,000.
The median home price for all homes priced above $500,000 is $692,500, which is a .5% increase year over year and the average days on market for homes in this price range is 72.
While there may be a lot more inventory at the upper price points, pending sales are up 67.5% to 283 units county-wide, which is remarkable considering that as many homes went under contract in October 2019 as did in May 2018 (the heat of the spring market).
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By City Breakdown
Homes For Sale: 2,776 | -20.2%
Median Sales Price: $252,175 | +9.7%
Pending Sales: 1,544 | +26.9%
Closed Sales: 1,469 | +17%
Months Supply: 1.9 | -26.9%
Homes For Sale: 221 | -12.6%
Median Sales Price: 307,500 | +16.8%
Pending Sales: 80 | +19.4%
Closed Sales: 97 | +47%
Months Supply: 3 | -11.8%
Homes For Sale: 219 | +7.9%
Median Sales Price: $371,499 | -5.1%
Pending Sales: 58 | +45%
Closed Sales: 49 | +28.9%
Months Supply: 4.6 | -6.1%
Homes For Sale: 400 | -2.9%
Median Sales Price: $298,000 | -3.9%
Pending Sales: 155 | +38.4%
Closed Sales: 168 | +11.3%
Months Supply: 2.8 | -3.4%
Homes For Sale: 217 | -17.2%
Median Sales Price: $299,900 | +11.1%
Pending Sales: 115 | +25%
Closed Sales: 108 | +56.5%
Months Supply: 2.1 | -22.2%
Homes For Sale: 114 | -28.8%
Median Sales Price: $299,000 | +3.1%
Pending Sales: 44 | +25.7%
Closed Sales: 49 | +40%
Months Supply: 2.5 | -34.2%
Homes For Sale: 39 | +2.6%
Median Sales Price: $288,102 | +3.1%
Pending Sales: 27 | +50%
Closed Sales: 22 | +22.2%
Months Supply: 1.7% | -5.6%
* While the town limits of Matthews are solely within Mecklenburg County, some Realtors use Matthews when labeling properties in the ETJ Matthews as well as properties in Union County, including Weddington and Stallings.