Market Remains Hot Ahead of the Spring Selling Season

By Helen Adams Realty - March 10, 2022

Canopy Realtor® Association Market Updates

Reprinted from February 2022 CRRA Monthly Indicators

The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of the last measure, according to the National Association of REALTORS®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates moved higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.

New Listings were down in the Charlotte region by 11.8 percent to 4,088. Pending Sales decreased 4.4 percent to 4,390. Inventory shrank 45.9 percent to 2,283.

Prices moved higher as Median Sales Price was up 22.0 percent to $360,000. Months Supply of Homes for Sale was down 44.4 percent to 0.5., indicating that demand increased relative to supply.

Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes that are priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.

A Closer Look