Home Prices Remain High Amid Summer Heat

By Helen Adams Realty - September 11, 2023

Canopy Realtor® Association Market Updates

Reprinted from August 2023 CRRA Monthly Indicators

Higher mortgage rates, along with elevated sales prices and a lack of housing inventory, have continued to impact market activity during the summer homebuying season. The average 30-year fixed-rate mortgage has remained above 6.5% since May, recently hitting a two-decade high in August, according to Freddie Mac. As a result, existing-home sales have continued to slow nationwide, dropping 2.2% month-over-month as of last measure, with sales down 16.6% compared to the same time last year, according to the National Association of REALTORS® (NAR).

New Listings were down in the Charlotte region by 12.3 percent to 4,553. Pending Sales decreased 9.2 percent to 3,828. Inventory shrank 27.3 percent to 5,309.

Prices moved lower as Median Sales Price was down 0.8 percent to $386,910. Months Supply of Homes for Sale was down 6.3 percent to 1.5., indicating that demand increased relative to supply.

Falling home sales have done little to cool home prices, which have continued to sit at record-high levels nationally thanks to a limited supply of homes for sale. According to NAR, there were 1.11 million homes for sale heading into August, 14.6% fewer homes than the same period last year, for a 3.3 months’ supply at the current sales pace. The shortage of homes for sale has boosted competition for available properties and driven sales prices higher, with NAR reporting a national median existing-home price of $406,700, a 1.9% increase from a year earlier.

A Closer Look