Annual Report on the Charlotte Housing Market FOR RESIDENTIAL REAL ESTATE ACTIVITY FROM THE CHARLOTTE REGIONAL REALTOR ASSOCIATION

Transcription

1 Annual Report on the Charlotte Housing Market FOR RESIDENTIAL REAL ESTATE ACTIVITY FROM THE CHARLOTTE REGIONAL REALTOR ASSOCIATION

2 Annual Report on the Charlotte Housing Market FOR RESIDENTIAL REAL ESTATE ACTIVITY FROM THE CHARLOTTE REGIONAL REALTOR ASSOCIATION There is an ongoing and undeniable national housing shortage. Year-over-year inventory levels have been down in most markets for several years now, and that trend is expected to persist in Consumers are still purchasing for the first time and relocating to other, presumably more ideal homes. Having the financial ability to make a move clearly seems feasible to many eager buyers amidst a healthy economy, whether life events such as marriage, children, employment change or desirable downsizing is the reason for moving. There are further positive signs on the horizon, as builder confidence has improved and construction job gains are measurably higher. It will still take more effort than a lone year can provide for building activity to reach a needed level for inventory balance, but a step in the right direction is welcome. More sellers should feel ready and willing to list in Economic indicators such as unemployment rates and consumer confidence are in an improved state, and sellers currently hold the keys in the buyer-seller relationship. This does not mean that sellers can set their price and watch the offers roll in. On the contrary, buyers will be poised to test prevailing price points, particularly in markets where home price increases are outpacing wage growth and in light of the fact that mortgage rates are expected to increase further in Sales: Closed sales increased 5.9 percent, landing at 47,353 to close out the year. Listings: Year-over-year, the number of homes available for sale was lower by 19.4 percent. There were 8,019 active listings at the end of New listings increased by 5.0 percent to finish the year at 58,378. Home supply was once again lower than desired in 2017, but the increase in new listings was encouraging. Distressed: The foreclosure market has dwindled from its peak several years ago. In 2017, the percentage of closed sales that were either foreclosure or short sale decreased by 34.6 percent to end the year at 1.8 percent of the market. Showings: Demand was high throughout 2017, although showings were down due to low supply. Homes for sale received, on average, 0.2 percent fewer showings. There were 17 showings before pending, which was down 0.9 percent compared to Prices: Home prices were up compared to last year. The overall median sales price increased 9.2 percent to $226,000 for the year. Prices are expected to rise at a slow rate in List Price Received: Sellers received 96.9 percent of their original list price received at sale, a mild year-over-year improvement of 0.7 percent. Sales prices are expected to increase further in 2018, which should bring original list price received at sale up as well. The historic tax reforms due to make their mark in 2018 will have varying effects across the nation. High-priced coastal markets may feel the changes stronger than the middle of the country. And some potential buyers may see the changes as providing less of an investment benefit for homeowners. Some observers warn that there might be enough lack of incentives to stifle homeownership, which is already near 50- year lows. Policy makers claim that the reforms will help boost economic activity and profitability. Whichever direction we ultimately turn, the next year appears to offer a dalliance with balance intended to intrigue both sides of the transaction toward a common middle ground. For those who have their minds made up to buy a home in 2018, it will likely be a competitive ride. The trend has widely been toward fewer days on market and fewer months of supply, indicating strong demand despite higher prices and low inventory. This could prove tricky for first-time home buyers, especially for those who are impacted by student loan debt, content to rent or among the more than 15 percent of adult children still living at home. In a landscape rife with new variables, residential real estate is certainly poised to offer an interesting and active year ahead. Table of Contents 3 Quick Facts 5 Property Type Review 6 Distressed Homes Review 7 Bedroom Count Review 8 Price Range Review 9 Showings Review 10 Area Overviews 11 Area Historical Prices Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 2

3 Quick Facts New Listings 58,378 Pending Sales 52,348 52,843 53,586 55,589 34,278 36,364 41,268 45,263 48, % + 1.4% + 3.7% + 5.0% + 6.1% % + 9.7% + 6.3% Top 5 Areas: Change in New Listings from 2016 Top 5 Areas: Change in Pending Sales from 2016 Lancaster County, SC % Montgomery County, NC % Concord, NC % Denver, NC % Lake Wylie % Uptown Charlotte % Mooresville, NC % Lancaster County, SC % Waxhaw, NC + 9.6% Anson County, NC % Bottom 5 Areas: Change in New Listings from 2016 Bottom 5 Areas: Change in Pending Sales from 2016 Union County, NC - 0.5% Fort Mill, SC - 1.2% Alexander County, NC - 3.7% Union County, NC - 1.3% Montgomery County, NC - 4.3% Statesville, NC - 1.9% Gastonia, NC - 6.2% Gastonia, NC - 2.6% Monroe, NC % Monroe, NC - 8.8% Closed Sales 34,369 36,233 40,938 44,734 47,353 Inventory of Homes for Sale At the end of the year. 14,743 13,842 11,814 9,945 8, % % + 9.3% + 5.9% - 6.1% % % % Top 5 Areas: Change in Closed Sales from 2016 Top 5 Areas: Change in Homes for Sale from 2016 Montgomery County, NC % Lancaster County, SC % Denver, NC % Fort Mill, SC + 3.3% Uptown Charlotte % Lake Wylie - 2.7% Alexander County, NC % Waxhaw, NC - 6.4% Anson County, NC % Huntersville, NC - 6.6% Bottom 5 Areas: Change in Closed Sales from 2016 Bottom 5 Areas: Change in Homes for Sale from 2016 Union County, NC - 1.2% Monroe, NC % Fort Mill, SC - 1.6% Stanly County, NC % Davidson, NC - 1.9% Montgomery County, NC % Statesville, NC - 2.7% Rock Hill, SC % Monroe, NC % Gastonia, NC % Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 3

4 Quick Facts Median Sales Price Average Sales Price $172,500 $181,310 $192,500 $207,000 $226,000 $222,654 $231,868 $242,067 $257,884 $272, % + 6.2% + 7.5% + 9.2% + 4.1% + 4.4% + 6.5% + 5.8% Top 5 Areas: Change in Median Sales Price from 2016 Top 5 Areas: Change in Avg. Sales Price from 2016 Iredell County, NC % Gaston County, NC % City of Charlotte, NC % Monroe, NC % Mooresville, NC % Huntersville, NC % Gaston County, NC + 9.9% Lincolnton, NC + 9.6% Huntersville, NC + 9.8% Iredell County, NC + 9.2% Bottom 5 Areas: Change in Median Sales Price from 2016 Bottom 5 Areas: Change in Avg. Sales Price from 2016 Waxhaw, NC - 1.7% Waxhaw, NC + 1.1% Davidson, NC - 2.4% Alexander County, NC - 0.4% Denver, NC - 4.4% Denver, NC - 0.5% Anson County, NC - 8.5% Davidson, NC - 2.9% Montgomery County, NC % Montgomery County, NC - 3.3% List to Close Percent of Original List Price Received % 96.9% 94.0% 94.1% 95.0% - 2.3% - 6.4% - 8.5% - 9.3% + 0.1% + 1.0% + 1.3% + 0.7% Top 5 Areas: Change in List to Close from 2016 Top 5 Areas: Change in Pct. of Orig. Price Received from 2016 Uptown Charlotte + 5.3% Lincolnton, NC + 1.9% Denver, NC + 1.7% Gastonia, NC + 1.7% Fort Mill, SC - 1.0% Gaston County, NC + 1.7% Huntersville, NC - 1.1% Montgomery County, NC + 1.4% Lake Norman - 2.2% Lincoln County, NC + 1.4% Bottom 5 Areas: Change in List to Close from 2016 Bottom 5 Areas: Change in Pct. of Orig. Price Received from 2016 Gaston County, NC % Anson County, NC 0.0% Stanly County, NC % Fort Mill, SC - 0.1% Gastonia, NC % Waxhaw, NC - 0.1% Monroe, NC % Alexander County, NC - 0.1% Kannapolis, NC % Uptown Charlotte - 0.2% Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 4

5 Property Type Review Average List to Close List to Close This chart uses a rolling 12-month average for each data point. Average List to Close Top Areas: Market Share in 2017 Uptown Charlotte 96.9% Davidson, NC 26.1% City of Charlotte, NC 25.9% Mecklenburg County, NC 24.5% Fort Mill, SC 21.9% Charlotte MSA 16.6% Entire CarolinaMLS Service Area 15.0% Lake Wylie 15.0% York County, SC 14.8% Rock Hill, SC 14.6% Lake Norman 14.3% Lancaster County, SC 11.9% Concord, NC 9.7% Gaston County, NC 9.5% Gastonia, NC 9.3% Huntersville, NC 9.1% Cabarrus County, NC 8.1% Mooresville, NC 7.9% Denver, NC 6.4% Iredell County, NC 5.9% Salisbury, NC 4.0% Union County, NC 3.7% Lincoln County, NC 3.6% Monroe, NC 3.3% Statesville, NC 3.0% + 8.6% + 8.6% 96.7% 98.1% One-Year Change in Price One-Year Change in Price Pct. of Orig. Price Received Pct. of Orig. Price Received Median Sales Price Percent of Original List Price Received $238K $180K $203K $190K $219K $140K $146K $150K $163K $177K 93.9% 94.0% 94.8% 96.0% 96.7% 94.6% 95.0% 96.0% 97.2% 98.1% Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 5

6 Distressed Homes Review 1.8% % Top Areas: Lender-Mediated Market Share in 2015 Percent of Closed Sales in 2017 That Were Distressed Percent of Sales That Were Distressed 10.7% 6.7% 4.4% One-Year Change in Sales of Lender-Mediated 2.9% 1.8% Salisbury, NC 4.9% Gastonia, NC 3.2% Statesville, NC 2.9% Gaston County, NC 2.8% Stanly County, NC 2.8% Kannapolis, NC 2.5% Alexander County, NC 2.5% Lincolnton, NC 2.4% Monroe, NC 2.3% Concord, NC 2.0% Entire CarolinaMLS Service Area 1.8% Cabarrus County, NC 1.8% Iredell County, NC 1.7% Union County, NC 1.7% Charlotte MSA 1.6% City of Charlotte, NC 1.6% Lincoln County, NC 1.5% Mecklenburg County, NC 1.4% Anson County, NC 1.4% Waxhaw, NC 1.4% Lancaster County, SC 1.1% Fort Mill, SC 1.0% Mooresville, NC 1.0% Rock Hill, SC 1.0% Lake Norman 1.0% % % % % Four-Year Change in Price All Properties Four-Year Change in Price Traditional Properties Four-Year Change in Price Foreclosure Four-Year Change in Price Short Sale Median Sales Price $228,748 $188,534 $197,500 $210,000 $155,000 $80,000 $85,000 $92,299 $112,000 $120,450 $129,250 $132, % +6.3% +8.9% +6.3% +8.6% +21.3% +7.3% +2.3% +17.3% Traditional Foreclosure Short Sale Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 6

7 Bedroom Count Review + 8.4% + 5.2% Growth in Closed Sales 2 Bedrooms or Less Closed Sales 5,931 6,429 21,360 22,501 Growth in Closed Sales 4 Bedrooms or More 12, , % + 5.3% + 5.2% 2 Bedrooms or Less 3 Bedrooms 4 Bedrooms or More Top Areas: 4 Bedrooms or More Market Share in 2017 Huntersville, NC 39.5% Mooresville, NC 38.0% Lake Wylie 37.4% Lake Norman 36.8% Fort Mill, SC 35.0% Davidson, NC 34.4% Waxhaw, NC 33.8% Iredell County, NC 32.4% Union County, NC 31.3% Lancaster County, SC 31.1% Denver, NC 30.8% Concord, NC 30.2% York County, SC 30.0% Cabarrus County, NC 29.2% Mecklenburg County, NC 28.3% Charlotte MSA 27.8% Entire CarolinaMLS Service Area 27.5% City of Charlotte, NC 26.9% Lincoln County, NC 24.7% Monroe, NC 24.3% Rock Hill, SC 24.1% Gaston County, NC 21.7% Gastonia, NC 21.0% Statesville, NC 20.4% Salisbury, NC 16.6% 96.9% 95.5% 97.4% 96.9% Percent of Original List Price Received in 2017 for All Properties Percent of Original List Price Received in 2017 for 2 Bedrooms or Less Percent of Original List Price Received in 2017 for 3 Bedrooms Percent of Original List Price Received in 2017 for 4 Bedrooms or More Percent of Original List Price Received This chart uses a rolling 12-month average for each data point. 98% 2 Bedrooms or Less 3 Bedrooms 4 Bedrooms or More 96% 94% 92% 90% 88% Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 7

8 Price Range Review $150,001 to $200,000 Price Range with Shortest Average Market Time Days on Market Until Sale by Price Range $500,001 and Above 9.5% Price Range with Longest Average Market Time of Homes for Sale at Year End Priced $100,000 and Below Share of Homes for Sale $100,000 and Below % One-Year Change in Homes for Sale Priced $100,000 and Below $100,000 and Below 63 26% 24% $100,001 to $150, % $150,001 to $200, % 18% $200,001 to $300, % $300,001 to $400, % $400,001 to $500, % 10% $500,001 and Above 77 8% $200,001 to $300, % Price Range with the Most Closed Sales Price Range with Strongest One-Year Change in Sales: $300,001 to $400,000 $400,001 to $500, % Price Range with the Fewest Closed Sales Price Range with Weakest One-Year Change in Sales: $100,000 and Below Closed Sales by Price Range 12, ,085 6,238 5,296 4,375 7,985 7,861 6,952 7,319 8,532 9,036 9,623 4,711 5,684 6,867 2,219 2,766 3,250 2,843 3,510 3,999 $100,000 and Below $100,001 to $150,000 $150,001 to $200,000 $200,001 to $300,000 $300,001 to $400,000 $400,001 to $500,000 $500,001 and Above Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 8

9 Showings Review % Median Number of Showings Before Pending Monthly Number of Showings 100,000 90,000 One-Year Change in Median Showings Before Pending Top 10 Areas: Number of Showings Charlotte MSA 823,762 Mecklenburg County, NC 460,385 City of Charlotte, NC 372,477 York County, SC 89,250 Union County, NC 81,074 Cabarrus County, NC 67,424 Iredell County, NC 59,435 Lake Norman 55,920 Gaston County, NC 52,214 Mooresville, NC 41,892 80,000 70,000 60,000 50,000 40, Top 10 Areas: Number of Showings per Listing Uptown Charlotte 20.1 Matthews, NC 20.0 City of Charlotte, NC 19.8 Mecklenburg County, NC 19.4 Fort Mill, SC 18.0 Davidson, NC 18.0 Charlotte MSA 17.5 Concord, NC 17.1 Lake Norman 17.0 Waxhaw, NC 17.0 One-Year Change in Total Showings - 0.2% March '17 Peak Showing Activity Month 2017 Year-Over-Year Change in Monthly Showings per Listing 16% 14% % 12% % 10% 8% + 8.4% + 7.6% + 7.5% + 9.9% + 6.7% + 8.9% 6% + 5.4% + 4.3% 4% + 3.0% 2% 0% + 0.5% Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 9

10 Area Overviews Total Closed Sales Change from 2016 Percent Condo- Townhome Percent Distressed Median Showings to Pending Months Supply of Inventory List to Close Pct. of Orig. Price Received Entire CarolinaMLS Service Area 47, % 15.0% 1.8% % Alexander County, NC % 1.8% 2.5% % Anson County, NC % 0.0% 1.4% % Cabarrus County, NC 3, % 8.1% 1.8% % Charlotte MSA 41, % 16.6% 1.6% % City of Charlotte, NC 16, % 25.9% 1.6% % Concord, NC 2, % 9.7% 2.0% % Davidson, NC % 26.1% 0.7% % Denver, NC % 6.4% 0.4% % Fort Mill, SC 1, % 21.9% 1.0% % Gaston County, NC 3, % 9.5% 2.8% % Gastonia, NC 1, % 9.3% 3.2% % Huntersville, NC 1, % 9.1% 0.6% % Iredell County, NC 3, % 5.9% 1.7% % Kannapolis, NC % 1.5% 2.5% % Lake Norman 2, % 14.3% 1.0% % Lake Wylie 1, % 15.0% 0.9% % Lancaster County, SC 1, % 11.9% 1.1% % Lincoln County, NC 1, % 3.6% 1.5% % Lincolnton, NC % 0.5% 2.4% % Matthews, NC 1, % 12.8% 1.2% % Mecklenburg County, NC 20, % 24.5% 1.4% % Monroe, NC 1, % 3.3% 2.3% % Montgomery County, NC % 0.0% 0.0% % Mooresville, NC 2, % 7.9% 1.0% % Rock Hill, SC 1, % 14.6% 1.0% % Salisbury, NC % 4.0% 4.9% % Stanly County, NC % 1.6% 2.8% % Statesville, NC % 3.0% 2.9% % Union County, NC 4, % 3.7% 1.7% % Uptown Charlotte % 96.9% 0.5% % Waxhaw, NC 1, % 0.6% 1.4% % York County, SC 4, % 14.8% 0.9% % Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 10

11 Area Historical Median Prices Change From 2016 Change From 2013 Entire CarolinaMLS Service Area $172,500 $181,310 $192,500 $207,000 $226, % % Alexander County, NC $98,250 $115,250 $123,678 $138,700 $147, % % Anson County, NC $59,400 $62,500 $59,500 $86,900 $79, % % Cabarrus County, NC $160,000 $169,950 $184,500 $193,000 $205, % % Charlotte MSA $175,000 $185,000 $195,500 $210,739 $230, % % City of Charlotte, NC $169,900 $178,500 $188,000 $202,000 $225, % % Concord, NC $158,750 $165,000 $177,500 $188,000 $203, % % Davidson, NC $290,000 $288,500 $297,500 $332,500 $324, % % Denver, NC $274,000 $289,154 $291,445 $350,000 $334, % % Fort Mill, SC $243,976 $256,500 $260,000 $285,000 $299, % % Gaston County, NC $118,000 $124,815 $139,000 $150,000 $164, % % Gastonia, NC $106,275 $118,000 $133,500 $142,000 $154, % % Huntersville, NC $237,304 $245,000 $258,435 $270,000 $296, % % Iredell County, NC $178,000 $190,000 $208,000 $217,000 $244, % % Kannapolis, NC $89,900 $94,000 $116,000 $124,299 $133, % % Lake Norman $330,000 $348,000 $342,812 $365,000 $375, % % Lake Wylie $270,025 $297,886 $290,279 $330,000 $325, % % Lancaster County, SC $225,750 $232,000 $246,548 $259,000 $267, % % Lincoln County, NC $160,750 $193,000 $196,000 $236,500 $255, % % Lincolnton, NC $114,500 $127,500 $130,000 $142,000 $155, % % Matthews, NC $224,500 $218,000 $235,500 $257,500 $278, % % Mecklenburg County, NC $184,000 $192,000 $204,708 $218,500 $239, % % Monroe, NC $136,000 $150,000 $157,250 $172,000 $186, % % Montgomery County, NC $92,500 $130,475 $133,750 $135,000 $120, % % Mooresville, NC $224,130 $242,486 $255,000 $260,240 $286, % % Rock Hill, SC $149,900 $150,000 $157,000 $169,900 $185, % % Salisbury, NC $115,000 $110,450 $120,000 $137,700 $143, % % Stanly County, NC $112,500 $115,500 $126,000 $137,500 $145, % % Statesville, NC $105,300 $115,000 $131,000 $144,114 $154, % % Union County, NC $205,500 $222,000 $235,000 $258,750 $282, % % Uptown Charlotte $219,000 $269,000 $250,500 $263,000 $284, % % Waxhaw, NC $309,250 $326,870 $346,700 $388,479 $382, % % York County, SC $184,900 $194,500 $206,000 $226,900 $244, % % Current as of January 5, All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor Association. Report 2017 ShowingTime. 11