Charlotte North Carolina Market Update for:

Single Family Homes in Mecklenburg County North Carolina Area 4 including:

Mecklenburg County North Carolina Area 4 including: Charlotte, Matthews. Neighborhoods West of Hwy 74, Independence Blvd. and East of Providence Road including, Grier Heights, Chantilly, Cotswold, Elizabeth, Eastover, Beverly Crest, Sardis Woods, High Timbers, Jefferson Park, Lansdowne, Providence Plantation, Sherwood Forest, Coachman Ridge, Providence Hills, and others.

Map of all the neighborhoods covered in Area 4

Data gathered for October 1, 2009 - October 31, 2009

New Listings

In October, 185 new single family detached homes were added to the market of available properties in Charlotte and Matthews area 4.  October’s new inventory figures represented a decline of 3.65% month-over-month and a 3.14% decline compared to last year.  October 2009’s new single family inventory was the lowest since 2005 when only 171 new listings were added to the market.

Pending Sales

Pending home sales in area 4 rose 126.47% over last year to 77 homes receiving a contract during the month of October.  When compared to October 2007, this October’s pending figures were still down 6.10% and down 37.4% from the 4 year high set in 2005.

Sold Listings

Fifty-six single family detached homes closed during the month of October in area 4, a 21.74% increase over October 2008.  Month-over-month, sales fell 21.13%, which is typical for the September to October transition.  In 2008, sales from September to October fell 30.3%, in 2007 sales fell 6.12%, and in 2006 sales fell 14.72%).  October’s sales were down 61.9% from their 2005 high of 110 closed single family homes.

Days on Market

The average days on market for a home in Charlotte and Matthews area 4 for sales in October remained a increased 5.26% to 100 days over the year prior.  While the DOM compared to last year was an increase, October’s DOM was the fourth lowest in 2009.

Seller Concessions

48% of the homes that closed in October offered a seller concession to the buyer as a part of the contract. The average concession amount was $4,788. A seller concession can be anything from paying a lender’s closing costs, HOA fees in advance, taxes, insurance, or even a country club membership.

Tax Value as compared to Sold Price

Of the homes that closed in October in Charlotte and Matthews area 4, only 12 properties sold below their assessed tax value. On average, homes in area 4 sold at 120.05% of their tax value, with one selling over 200% of tax value.

Average Sold Price

The average sales price for the homes that closed in Charlotte and Matthews fell 25.14% over last October to $275,573.  Last year, the average sold price for homes in area 4 was $368,108, which was the highest in a four year survey.

Percentage of Listed Price Received

Of the homes that closed during October, sellers received 91.7% of their original asking price; 90.71% when concessions are subtracted from the closed price.  Eleven homes closed in less than 30 days with the sellers receiving 98.42% of their original asking price while 37 homes closed in less than 99 days with sellers receiving 94.42%.  Nineteen homes closed in excess of 99 days (averaging 196 days), resulting the sellers receiving only 86.41%.

Market Analysis for Charlotte and Matthews NC Area 4

The lesson learned from October: Price it right and they will come.

The reality of the current real estate market that we will be in for some time is that with fewer buyers and more opportunities, sellers will have to be aggressive in pricing their homes for the current market.  While only 56 homes closed during the entire month of October, the majority of them closed in less than 99 days with the sellers receiving 94.42% of their asking price.

Sellers also need to be aware of the role that distressed properties in determining their listing prices.  While short sales, pre-foreclosures, bank-owned (REO), and HUD homes only account for 7.5% of the inventory in area 4, they represented 12.5% of the homes that closed.

The good news for both buyers and sellers is that prices are substantially lower (below 2005 average sales prices), the cost to borrow money is extremely cheap, and the home buyer tax credits have been extended.  For a seller that needs to sell, this is the perfect opportunity to sell and move on.  Buyers are, once again, being presented with an amazing opportunity to purchase that will not last forever.  How long is anyone’s guess so please don’t buy into all the hype.  However, with the cost to borrow so cheap and prices down, there’s hardly a reason not to buy for a 5+ year investment.

Jonathan Osman
Charlotte NC Homes For Sale