Home Prices Continue to Increase as Inventory Decreases

By Helen Adams Realty - October 12, 2021

Canopy Realtor® Association Market Updates

Reprinted from September 2021 CRRA Monthly Indicators

Nationwide, existing home sales were down slightly in August, falling 2% after two consecutive months of increases, according to the National Association of REALTORS®. The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 14.9% compared to last year. Declining affordability has had a significant impact on homebuyers, many of whom have been priced out of the market and are choosing to wait for sales prices to ease before resuming their home search.

New Listings were down in the Charlotte region by 3.7 percent to 5,466. Pending Sales increased 3.9 percent to 5,283. Inventory shrank 37.0 percent to 4,103.

Prices moved higher as Median Sales Price was up 15.9 percent to $335,000. Months Supply of Homes for Sale was down 42.9 percent to 0.8., indicating that demand increased relative to supply.

There are signs the market may be shifting, however. New listings have continued to hit the market, bucking seasonality trends commonly seen in the fall, a time when listing and sales activity typically slows as children return to school. As inventory increases, competition for homes may soften, and could even bring moderation in sales prices, which, after 114 months of year-over-year gains, would be music to the ears of homebuyers throughout the country.

A Closer Look