Are we in a housing Bubble?
Buyers are wary of purchasing a home in this market. They see multiple offer bidding wars and Prices going up and they don’t want to over pay. I, however, do not see the market going down. In fact, I see the housing market to continue to rise. Every day we learn of a new major company moving to Charlotte or our local companies expanding. Even today we learned that Centene, a health insurance Giant, will add 6,000 jobs to our market and invest $1B to bring its east coast reginal headquarters here. Credit Karma will be adding 600 new jobs in Mecklenburg County with a new high -tech engineering hub. And there are so many more companies expanding or moving here. It is all about supply and demand. High demand will continue to drive up the prices. Which will support your home value and support your home purchase.
Some very interesting stats are emerging from our Charlotte Metro market as we enter summer 2021. Sales are still crazy, and numbers are up across the board.
For single-family homes, there were 5605 sales, which is a slight rise compared to May 2020 of 5512 sales. Another area experiencing an increase is median sale price. It rose 21.8% year over year to $323,000. What is more startling is the average Sales Price is a whopping $394,924 vs 309877 last year, a 27.4% increase so Charlotte Metro homeowners have more equity than ever. In fact average list price last month was $403K vs. $374K last year, an increase of 8%. The average number of showings in Mecklenburg County per listing decreased over month down 13%.
Obviously, the No. 1 challenge we all know about is inventory. We are in an absolute inventory crisis, with only 3104 homes on the market vs. 8,177 last year May. and we just set a new record-low last May with just 0.6 months of supply—a 68% drop compared to last year. We are selling a lot of homes for $40,000 or $50,000 over asking price based on a strategy we designed to create a virtual auction effect. Homes are selling 102% over original list price.
“We’re in an absolute inventory crisis, and we just set a new record-low last May.”
Strong buyer demand, fueled by continued low mortgage rates continue to outpace supply. If you or anyone you know is thinking about selling, don’t let them cost themselves hard-earned equity. Day in, day out, average agents who don’t know what they’re doing are misleading their clients. As you’ve heard me mention several times, the average agent in our MLS sells only 2.5 homes per year. They won’t be very well-versed on what’s happening in our fast-paced market. My team, on the other hand, sells a home every 12 to 16 hours.
I’m very excited and proud of what my team’s been able to accomplish in this market considering a lot of homeowners are costing themselves tens of thousands of dollars by hiring average agents. Anyone can sell a house right now, but if you want to sell for the maximum amount of money, you need to hire someone who has a system in place. Just the other night, someone from our buyer team made a full-price offer on a home the minute after it was listed. The seller took the offer before giving anyone else a chance to see their home and make a bid. In fact, someone else from our buyer team wanted to make an offer, but they weren’t able to schedule a showing. That seller missed out on a chance to drive their home’s price up because their agent doesn’t know what they’re doing.
If you’d like to know how we can get your home sold quickly and for top dollar or have any questions about our Charlotte Metro market, don’t hesitate to reach out to me. Also if you are concerned about finding your replacement home when we sell your home quickly for top dollar we have many solutions for you. For example, we can get you seller possession after closing for as long as 6 months to give you time to find your replacement home. I’d love to help you.