The word is out – we’re in a seller’s market! And lots of sellers understandably want to cash in. But one thing we’re seeing in the data is a STEEP drop from the original sales price when a property doesn’t sell relatively quickly.
As you can see, the average home sold in the first week went for OVER list price. Sold in the first month, the seller came about $10k off the original list price. But over 2 months, and the average drop was almost $40k!
As tempting as it might be to swing for the fences, it’s important for sellers to understand that the longer their property sits, the less money they’ll get (not to mention the extra holding costs).
We have this data available for 5 areas:
These graphs are easily downloadable & will auto-update each week. Feel free to use in your blogs!
Every so often, we like to run the numbers and compile a list of the hottest neighborhoods in Charlotte (based on inventory).
Remember, a “balanced” market means about 6 months inventory. So if a neighborhood is under 4 months or so, that’s a seller’s market. It means there are buyers waiting for listings to come on the market, and sellers are often selling their houses quickly and for more money than they expected.
Here are a few examples of very hot neighborhoods:
- Sherwood Forest (0.4 month supply)
- Stonehaven (1.2 months supply)
- Beverly Woods (1.5 months supply)
- Madison Park (1.7 months supply)
- Monteith Park (0.5 month supply)
- Tanners Creek (1 month supply)
- Cedarfield (1.7 months supply)
So, without further adieu, here are the lists!
One of our clients wrote a pretty cool blog about Freddie Mac adding Charlotte to its list of markets whose “Multi-Indicator Market Index” falls in a healthy range.
In a nutshell, this Freddie Mac indicator tells us how “normal” a market is in comparison its long-term range. If its “MiMi” valls between 80 & 120, it’s deemed “in range” by Freddie Mac. Anything under 80 is a slow market and anything over 120 is one where the market is too hot to be considered healthy.
One thing that was interesting from this data, available on our client’s website is that the actual market bottom in Charlotte occurred in September, 2011. So if you bought a house around then, congratulations because it’s almost certainly worth a heck of a lot more today!
Thanks to Donna Johnson of RE/MAX Executive for sharing this info!
We’re about a month into the 2nd quarter of 2016, so it’s safe to start drawing some conclusions the market. Let’s dive in…
Overall, prices are slightly up. Uptown condos have seen a bit of a dip, along with homes in Cabarrus county. The average South Charlotte home is now about $430k, 5% up from last year. Because the region has very low inventory (about 4 months in Charlotte), buyers are paying a premium for desirable properties.
But the other side of the coin of low inventory is lower activity:
A few more uptown condos are selling each month compared to 2015, but overall, activity is down about 15% in the region as a whole.
This number should improve as we get through the summer months, but we expect activity to be down in 2016 due to the lack of local inventory across the board and the dip in home ownership we’ve seen over the past few years. US home ownership peaked at almost 70% before the economic collapse and has been falling. It’s down to about 63% today.
While low inventory can cause headaches for buyers, we aren’t seeing big spikes in prices or anything too alarming. At 4.5 months, we are definitely in a seller’s market, but it’s nothing like what we saw pre-crash. In a sense, fewer buyers looking is a good thing because it keeps the market more in balance.
We’ve been hard at work with our calculators & abacuses and have completed the 2015 “state of the market” for the Charlotte region.
Overall, MLS activity was up 7% and prices were up 5% over 2014.
One area that stood out, however, was East Mecklenburg, where activity was up a whopping 18% and prices were up 11%.
As a whole, 2015 was a very good year for the entire region. We made this report available on all our clients’ sites, but you can also view it here.
In case you haven’t noticed, we have been in a strong seller’s market in many areas. So we put together a little map that shows the hot (and hotter) areas.
This map will auto-update each week and is also available on all of our clients’ sites. Enjoy!
Yowza, it’s been over 6 months since we’ve blogged! So much for leading by example, eh? Let’s try to make up for it with some rock-solid analysis of the Charlotte market.
Now that’s a healthy market. But how about some areas within Mecklenburg?
Okay, so Union County has seen a slight decrease from 2014, but other than that, there isn’t a shred of bad news in here!
Both Charlotte & Mecklenburg County are sitting with just over 5 months of housing inventory. That means in many areas we are in a full-blown seller’s market. There are a whole lot of subdivisions with fewer than 4 months of supply: Collins Park, Barclay Downs, Sedgefield, Merry Oaks, Elizabeth, Madison Park, and Chantilly, just to name a few.
If there are sellers in there considering selling, now is a great time. Or, so says the postcards you should be sending… 😉
It’s been quite some time since we’ve seen seller’s markets, so enjoy it! Even the areas with high inventory are typically not more than 9 or 10 months. Just a few years ago, 9 months inventory would have been considered very good.
Have a great summer and party like it’s 2005!
With the 3rd quarter in the books, let’s take a look at how 2013 has looked:
Now those are some nice charts, eh? The biggest gains are in the city of Charlotte & Mecklenburg County – both are up over 10% from 2012!
Even condos aren’t doing too badly:
Overall, condos are up 8-10% from 2012 in Charlotte/Mecklenburg, and we’re seeing minimal gains in most areas other than uptown:
However, though uptown condo values are down, activity is up:
As always, feel free to steal these graphs and let us know if you have questions, or if there’s any data we can crunch for you!
If you’ve been in the business for a few years, we don’t need to tell you that we’ve gone through many years of a strong buyer’s market in most areas. But the tide seems to be turning.
As of May 1, the following popular neighborhoods in the Charlotte area have fewer than four (4) months inventory:
- Cameron Wood
- Beverly Woods
- Colonial Village
- Sherwood Forest
- Merry Oaks
- Stone Creek Ranch
- Cady Lake
- Jetton Cove
To put in perspective — 6 months is considered a “balanced” market, i.e. neither seller’s or buyer’s market. For most of the past 4 years or so, inventory around Charlotte was anywhere from 9-14 months or so. But suddenly, inventory is very low in a lot of areas.
What do I do with this info?
Farm, farm, farm! If there are homeowners in those areas who are even considering selling — now is a great time. Many (if not most) homeowners have no idea just how much the real estate market has changed in the past year. The agent to deliver this news may very well be the one to get the listing(s).
And don’t forget that our IDX service comes with an “Absorption widget” that you can put on any website. This allows you & your clients to see inventory stats for any neighborhood in the Charlotte metro.
Unless you’ve been living under a rock for the past 5 years, you know that the entire country has gone through a real estate downturn. Across the country, the “market peak” varied from 2005-2008 or so, and in some areas (i.e. Las Vegas, Phoenix, areas of Florida, etc), values in 2013 are still up to 40-50% lower than they were at the peak.
For the metro Charlotte area, on average, current values are around 13% lower than they were in 2007 (which, in general, was the market peak for the region). Overall, not too bad. But surprisingly, some areas are doing quite well.
Here is a chart of the value change of every neighborhood with at least 1 home sold per month. Yes, some are still struggling, but many are at or near where they were back in 2007, which is pretty remarkable given the severity of the downturn.
Neighborhoods such as The Peninsula, Cedarfield, Midwood, and Birkdale have actually surpassed their 2007 values. Others, such as Baxter Village, Chantilly, and Piper Glen are within about 5% of the peak.
Given how low inventory is right now (under 6 months in many popular areas), now is a great time to encourage homeowners in hot areas to put their homes on the market. Use our market stats plugin or the graphs available in neighborhood analyzer to create content for your blog and/or postcard campaigns. It’s been a long, long wait, but in some areas it’s actually a seller’s market!