Low Inventory Continues Into Fall

By Helen Adams Realty - October 11, 2023

Canopy Realtor® Association Market Updates

Reprinted from September 2023 CRRA Monthly Indicators

National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS® (NAR).

New Listings were down in the Charlotte region by 8.6 percent to 4,294. Pending Sales decreased 4.1 percent to 3,336. Inventory shrank 22.8 percent to 5,905.

Prices moved lower as Median Sales Price was down 0.2 percent to $380,000. Months Supply of Homes for Se was down 5.6 percent to 1.7 months, indicating that demand increased relative to supply.

Prices have continued to increase this fall despite softening home sales nationwide. Lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. There were only 1.1 million units available for sale heading into September, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.

A Closer Look