02 Jul Mortgage News Review for July
Charlotte enjoyed a slow rise in April home sales compared to the nation as a whole. Meanwhile, the Wilmington region is seeing the key statistic of days on market (DOM) shorten. Elsewhere, a lack of inventory is starting to affect the luxury home market in Charleston and surrounding areas. Here is more on the mortgage news stories that we are watching:
April Brings Decrease in Gains for Home Sales in the Queen City
The Charlotte residential real estate market slowed its pace in April, only growing 6% based on the latest S&P CoreLogic Case-Shiller index. This dropped the Queen City below the national average as the entire United States experienced a gain of 6.4%. In addition, it fell below the 10-city measure of 6.2% and the 20-city measure of 6.6%. Not surprising, the housing markets in the West are maintaining their top spot in growth across the nation. On top of the slow growth in home prices, the Charlotte area continues to struggle with a lack of inventory, with only a 2.2-month supply of homes on the market at the end of May, according to the Carolina Multiple Listing Services Inc.
How Days On Market Can Affect the Real Estate Market in the Cape Fear Region
The days on market (DOM) statistic is a commonly used piece of data to determine if the real estate market favors sellers or buyers. A buyer’s market typically features a high number of days-on-market, and the buyer may be able to work out a better deal. Based on information from Cape Fear Realtors (CFR) and the Wilmington-Cape Fear Home Builders Association, New Hanover County’s median DOM declined from 49 to 26 days over the past five years (from 2012 to 2017). Looking at the month of May, the combined median days on the market for New Hanover, Brunswick and Pender counties fell from 37 to 32 year-over-year, according to data from CFR. In the current market, buyers may not have as long to consider if they want to make an offer on a property. Conversely, if a home for sale sits on the market without much interest, the seller may need to consider reducing the price to drive more interest.
Lack of Inventory is Now Affecting the High-end Home Market
If you are on the market for an upscale home in the Lowcountry, you may be out of luck. The housing market has been dealing with low inventory for some time. This is a result of a booming economy, a vibrant tourism industry and a growing airport, and now it’s affecting the luxury market. High-end homes can be found across the Charleston area. Many of the surrounding islands and areas along the coast are especially popular locations because of all the amenities they offer. Luxury homes in good condition and priced fairly go quickly on the market. Based on data from the Charleston Trident Association of Realtors, home sellers are receiving nearly 97% of the actual sales price.
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Martin, Jenna. “Home-price growth in Charlotte market cools in April.” Web blog post. Charlotte Business Journal. 26 June 2018. Web 26 26 June 2018.
Nunn, Cece. “Counting The Days, On Market.” Web blog post. WilmingtonBiz. 29 June 2018. Web 29 June 2018.
Wise, Warren L. “Luxury homes in short supply in Charleston’s hot real estate market.” Web blog post. The Post and Courier. 23 May 2018. Web 23 May 2018.