CHARLOTTE, N.C. – After three consecutive months of year-over-year sales declines, the Charlotte region’s home sales rebounded in July. Closed sales compared to the previous year rose 11.4 percent with 5,469 properties sold across the 16-county region. Sales compared to June 2020 increased 10.8 percent as buyers purchased homes at near-record pace.
The region’s pending sales continued to show strong gains and rose 23.7 percent year-over-year as buyers added 5,895 contracts to the pipeline, even as the pandemic continues to impact the overall economy. Pending sales compared to June 2020 faltered a bit and were down 4.5 percent.
New listing activity in July 2020 was also positive year-over-year for the first time since March 2020, rising 4.1 percent compared to July 2019. Sellers added 5,868 new listings to the market, a solid sign of increasing seller confidence.
2020 Canopy Realtor® Association/Canopy MLS President John Kindbom said, “Our recovery looks strong at the moment, with sales and new listings showing major improvement this past month. We know based on pending sales activity that area buyers are eager to purchase. And certainly, the rise in new listings shows sellers have adjusted even in these uncertain times. As long as employment remains stable and mortgage rates stay at historic lows, this activity looks to be sustainable.”
Impacted by falling inventory, prices across the region continued to rise in July. The average list price ($367,414) rose 15.9 percent compared to last year and increased 0.2 percent compared to June 2020. The median sales price ($285,000) and the average sales price ($344,991) rose 7.5 percent and 10.6 percent, respectively. The original list price to sales price ratio was at 98.1 percent, showing sellers getting almost all of their asking prices.
Kindbom added, “Inventory challenges were already an issue even before the pandemic and they continue to persist. This means home prices in our market will likely continue to rise due to increased competition among buyers in a tight market.”
Inventory remains critically low and declined 47.5 percent in July with just 5,580 homes for sale, or 1.3 months of supply at report time. This time last year the 16-county market had 10,629 active listings for sale and almost three months of supply.
Homes continue to sell briskly as days on market, the metric that accrues for “Active” and “Under Contract-Show” statuses, averaged 36 days in July 2020 compared to 38 days in July 2019. The average number of days a property was on the market from the time it was listed until it closed (list to close) was 89 days.