November numbers have been released from the Carolina Regional Realtor Association. We are again looking at a deepening of the trend where inventory continues to be low and prices continue to get higher. This trend has been continuing for the entire year with no end in sight.
2016 started off in January with 10,350 homes on the market. November has 9,770 homes listed for sale. By themselves, these numbers don’t mean much, but when you compare them year over year, you begin to see the larger picture. In January of 2015 there were 13,607 homes on the market. November of 2015 had 13,004. This is a reduction year over year of 31.8% for January and 31.6% in November.
When you look at home prices, they have continued to go up every month for the entire year as well. In January 2016 the average price for a home sale was $229,766. By November average price for a home sale was $259,205. Last year in January the average sale price was $214,166 and in November it was $239,680.
These trends of inventory going down and prices going up illustrate the main principle of supply and demand. There have been some signs that supply and demand will remain out of balance going forward. New announcements of corporate headquarters in the Charlotte region, and Millennials moving to the area in greater numbers are just two of these signs.
There are predictions saying that things may be changing in 2017. Redfin data scientists are predicting that the housing market will continue to grow, but at a slower pace due to affordability pressures. Affordability will be an issue in part because of a slight rise in interest rates coupled with rising home prices. They also believe new-construction growth will slow. This may be enough to slow the trend, but it will take quite a bit longer if the market is going to even out or become a buyers market again.
If you are interested in buying or selling a home in the Charlotte area, call us at (704) 525-4045 or check out our website with robust search capabilities here.