Charlotte North Carolina Market Update for:

 

Single Family Homes in Mecklenburg County North Carolina Area 1 including:

 

Charlotte, Cornelius, Davidson, and Huntersville Neighborhoods East of  I-77, North of N. Tryon Street, West of Cabarrus County, and South of Iredell County including the neighborhoods of Davis Lake, Highland Creek, Vermillion, Heritage Green, River Run, Skybrook, Northstone, Cambridge Grove, and others.

Map of all the neighborhoods covered in Area 1

 

Data gathered for October 1 - October 31, 2009

New Listings

In October, 334 new single family detached homes were added to the inventory of available listings in north Charlotte, Huntersville, Davidson, and Cornelius.  October’s year-over-year new inventory numbers were an increase of 3.73% but a month-over month decline of 3.75%.

Pending Listings

Only 169 homes received a contract in area 1 during the month of October, up 18.18% over 2008 yet 27.16% lower than in 2007 and 46.35% from 2005.

Sold Listings

172 homes closed during the month of October, a 21.99% increase over September and an astonishing 40.98% increase compared to the previous October.  Over a four year history, October’s sales figures were down 5.49% to 2007, 28.63% to 2006, and 27.73% to 2005.

Average Sold Price

The average sold price for single family detached homes in north Charlotte (area 1) increased to $186,945 in a month-over-month comparison to September.  The average sold price was 5.67% lower than the previous 4 yr low set in 2006 of $198,188.

Days on Market

As a result of the decreased number of sales, the average days on market for area 1 increased to 89 days; an increase of 1.14% over 2008 and 25.35% of the four year low of 2005.

Seller Concessions

In 59% of the sales that closed during the month of October, the seller offered the buyer a concession averaging $4101.  A seller concession can be anything from paying lender’s fees, HOA fees in advance, taxes, insurance, or even a country club membership.

Buyer Financing

Of the 172 closings in northeast Charlotte, Huntersville, Davidson, and Cornelius in October, 68 used conventional financing, 73 FHA, and 24 paid cash, 4 utilized VA financing, and 3 utilized “other” forms of financing.

Tax Value as compared to Sold Price

67 of the 172 sales that closed in north Charlotte (area 1) during the month of October closed either at or below the assessed tax value.  86 closed above the assessed tax value, averaging 107.28% for all of the closed sales during October.

Original Listing Price to Sold Price

Sellers received 92.53% of their original asking price at closing.  When the seller concessions are figured into the equation, the amount received was 91.00% of their original asking price.  Sellers that received a contract in less than 99 days received 94% of their original asking price, while homes that sold between 100-180 days received only 88.20%.  The 23 homes that sold in over 180 days only received 88.01% of their original asking price (87.10% with concessions).

Market Analysis and Advice for Buyers and Sellers in North Charlotte, Huntersville, Cornelius, and Davidson

The good news: home sales in Huntersville, north Charlotte, Cornelius, and Davidson were up in a year-over-year comparison to 2008.  While that may seem like a cause for celebration (and in a way it is), let’s not forget that last October’s sales were historically awful.  Don’t forget that it was only last October that we had the collapse of the financial system looming, a pivotal election nearing, and what the media termed as a the end of the western civilization.  Ok, maybe it wasn’t the media saying that but buyers were certainly believing that and as a result, they stayed away from purchasing real estate.  When you look back to the sales in October 2005 (before Charlotte’s market was overheated),  you see that this October’s contract volume was down 46.35%, sales were down 27.73%, prices were down 10.85% and homes sold 25.35% faster.  Another tidbit of good news is that buyers are not only flocking to the foreclosed and short sale properties as they accounted for just 11% of the total sales in Area 1 last month. 

With that in mind, sellers need to resist the urge to over-price their property if they truly intend on selling.  52 single family homes in north Charlotte, Davidson, Huntersville, and Cornelius went under contract in less than 30 days and the sellers received 97.1% of their original asking price before concession.  Of the homes that sold between 100 - 180 days, sellers received only 88.2% of their original asking prices and then gave an additional 1.28% in concessions.  That equates to sellers receiving 8.9% less for their home or in real dollars: $17,800 less based on a $200,000 home. 

Buyers are taking advantage of the market’s decreased prices and interest rates below 5% once again.  To make sure that you’re a successful seller, price at or ahead of the market (a little lower), preview your competition to see how your home stacks up, and you will be a successful seller in this market. 

Charlotte NC Real Estate