The Housing Affordability Index for May 2011 reflects that current numbers show Charlotte, North Carolina to still be a very affordable city to live. The index measures housing affordability for the region. An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. The index number for the Charlotte, North Carolina market -month of May increased 6.8% to 185!
For the week ending June 18, 2011, the Charlotte real estate market posted positive movement on the demand side of the aisle. What this means in particular is that buyers signed more Offers to Purchase & Contract Agreements than they did one year prior.
In addition to being aware of changing dynamics at this time last year, it is also important to watch what other indicators can reveal.
For example, in the Charlotte region, for the week ending June 18, 2011, take a look at these additional stats:
- New Listings going on the market decreased by 15.3% to 938. This number is nothing more than a count of the properties that have been newly listed on the market during the week. This time last year, new listings were at 1,108.
- Pending Sales increased by 8.9% to 490. This number reflects a count of the properties that have offers accepted or pending on them for the week. The highest week for pending sales last year was the week ending 4/30/2010. This was due to the first time home buyer tax credit extension.
- Existing Listing Inventory decreased by 17.6% to 22,646 for total Multiple Listing Service. This number reflects the number of properties available for sale in active status at the end of the given week. Last year’s listing inventory for June, 2010 was at 27,484 total listings in the Multiple Listing Service. Although the listing inventory decreased for this year, this is still a lot of inventory; therefore, price aggressively if you want any chance of getting your house sold!
For the month of May:
- Median Sales Price decreased by 3.2% to $151,995. This number reflects the median price point for all closed sales for the month and does not take in to account any seller concessions (closing costs).
- List to Close Days on Market increased by 8.2% to 150. This number reflects a count of the days between the date listed and the date closed for all properties sold for the week. This means that houses are sitting longer on the market today than they were one year ago this week.
- List to Sales Price Ratio decreased by 1.8% to 89.6%. This simply means that the seller was able to achieve 89.6% of their original list price. The percentage is found when dividing a property’s sales price by its original list price, then taking the average for all properties sold in the month of May, not taking in to account seller concessions.
- Average Sales Price increased by .6% to $208,999. This number reflects the average sales price for all closed sales for the month, again, not taking into account any seller concessions. Prices still remain steady in the Charlotte market; however, it definitely is a “Buyer’s Market.”
- Months Supply of Inventory decreased by 3.8% to 12.8 months worth of inventory on hand. This number reflects the inventory of homes for sale at the end of May, divided by the average monthly pending sales from the last 12 months. This is often referred to in real estate lingo as “Absorption Rate.”
In summary, the Charlotte Housing Market still remains a cool place to live. Now’s a great time to buy. Inventory is high and prices remain low.
Take a look at the most popular places to live in Charlotte.
If you are interested in purchasing property in the Charlotte Market, contact Stephanie Fessel for a consultation.
For a FREE copy of this report, click here.All CMLS data was supplied for today’s Market Report – week ending June 18, 2011 – by the Charlotte Regional REALTORS Association and was refreshed regularly to capture changes in market activity; therefore, today’s figures may differ than previously reported. If you like what you just read, please “share the knowledge” with your friends by clicking on one of the share buttons below. Also, don’t forget to subscribe via email to not miss any of my future posts. Thank you!