As we’ve passed the midway point of 2018 and are nearing the end of the summer vacation schedule – traditional schools resume August 28 in Union County – it is time for us in the real estate world to look back on the first half of the year and reflect upon the trends we notice, both locally and industry wide.
I mentioned in an earlier article that we remain in a seller’s market. What does that mean? It means there are more home buyers than there are available homes to move into today.
Traditionally, a six-months supply of inventory is considered a balanced market, and we were at just over three-and-a-half months supply in Waxhaw in June per the most recent CarolinasMLS report, and less than three months supply across Union County.
However, despite supply being low, sales are up.
Consider, too, the amount of new construction taking place locally compared to the vast numbers of people relocating to the Charlotte region every day, and you can see it is difficult for supply to keep up with demand.
Let’s take a look at the numbers, year over year, compared to 2017 for Waxhaw and for all of Union County.
Waxhaw By The Numbers*
New Listings – 1,008, +1.7%
Pending Sales – 761, +9.0%
Closed Sales – 628, +1.8%
Median Sales Price – $398,200, +2.4%
Average Sales Price – $452,930, +2.2%
Months Supply of Inventory – 3.6 months in June, -14.3%
Union County By The Numbers
New Listings – 2,984, +3.5%
Pending Sales – 2,407, +8.0%
Closed Sales – 2,024, +1.6%
Median Sales Price – $299,000, +6.7%
Average Sales Price – $352,042, +4.8%
Months Supply of Inventory – 2.7 months, -12.9%
Despite rising home prices and a lack of inventory priced for entry-level buyers, housing remains affordable for many.
A recent report on home affordability from CoreLogic showed that while home prices have returned to 2006’s pre-housing crisis levels, the inflation adjusted price of homes today is still less than it was 12 years ago.
Additionally, with mortgage interest rates lower than pre-crisis rates, the cost of owning a $300,000 home is less today than it was over a decade ago. According to CoreLogic:
“The main reason the typical mortgage payment remains well below record levels in most of the country is that the average mortgage rate back in June 2006, when the U.S. typical mortgage payment peaked, was about 6.7 percent, compared with an average mortgage rate of about 4.4 percent in March 2018.” — Source, KeepingCurrentMatters.com, 7/26/2018
Curious about what all this data means vis-a-vis your prospects for buying or selling a home? Schedule an appointment with your local real estate professional to get an informed analysis of this data and what it means to you.
Year over year data from June 2017 till June 2018. All statistics are compiled using most recent data from CarolinaMLS current as of July 5, 2018.