If there’s one thing that’s constant, it’s change. That’s true in most areas of life, and it is especially true when it comes to real estate sales transactions.
According to the Charlotte Regional Realtor Association’s most recent data on Waxhaw real estate comparing statistics from June 2018 and June 2019, new listings and closings were down 15% and nearly 4% respectively, while pending sales were up by more than 17% over the same time last year.
The median sales price dropped from $416,500 to $359,217, and the average home sales price was down from $475,543 to $446,189.
Additionally, the number of months’ supply of inventory was down from 4 months to 2.6 months, meaning if no additional inventory was added, the available home market would be depleted nearly 1 1/2 months faster than it would have been a year ago.
What Does This Mean For Home Buyers and Sellers?
Simply put, housing demand in Waxhaw continues to outpace housing supply. Despite the lowering median and average sales prices, home values are continuing to appreciate at an impressive clip, especially in the sub-$400,000 market.
More people are in the market for homes priced in the $200,000s and $300,000s, especially as older millennials and those with families look to move from urban areas like uptown Charlotte to areas like ours for lower taxes, better schools, and more affordable housing.
As you get into higher price points above $600,000, recent appreciation has been a bit slower lately, but anyone who purchased a home at this price point three or more years ago should be happy with the return on their investment.
Pending sales were up by a healthy margin this June versus a year ago, indicating closing numbers for July 2019 will actually be up year over year.
Our market’s biggest challenge is finding available resale inventory versus demand. If you ride around area neighborhoods, you’ll see plenty of houses for sale, they just aren’t staying on the market for very long due to the steady flow of people moving to into our area.
According to a study published in May, Waxhaw is the Charlotte region’s second-fastest-growing town behind Fort Mill, SC, and the tenth-fastest-growing town in North Carolina with 6.4% growth. Waxhaw’s population has increased by double-digit percentage points twice already this decade.
While the market thawed a bit in mid-to-late 2018 due to a September rate hike and threats of additional rate hikes by the Fed in early 2019, those rate increases didn’t materialize, and, in fact, mortgage rates are now at their lowest point since 2016.
According to Bankrate.com (July 24, 2019), “The benchmark thirty-year fixed-rate mortgage fell this week to 3.93% from 4.05%, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.71%.”
Combined with low unemployment, this is good news for home buyers and sellers. However, it’s also good news for current homeowners looking to refinance their existing mortgage to a lower rate, which will contribute to continued low inventory.
At the end of the day, life events continue to happen, and they are the most reliable drivers of decisions to move.
If you are thinking about making a move, or if you just have questions about the current real estate market, give me a call, write an email, or connect with me on social media. I’d love to hear from you.
NEXT WEEK: Selling Your House Series