Mortgage Rates Continue to Impact Summer Market

By Helen Adams Realty - August 14, 2023

Canopy Realtor® Association Market Updates

Reprinted from July 2023 CRRA Monthly Indicators

Affordability constraints have continued to limit homebuying activity this summer, with existing-home sales falling 3.3% month-over-month nationwide as of last measure, according to the National Association of REALTORS® (NAR). Mortgage rates have approached 7% in recent months, leading many prospective buyers to put their home purchase plans temporarily on hold. Higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago when rates were significantly lower.

New Listings were down in the Charlotte region by 30.2 percent to 4,186. Pending Sales decreased 6.8 percent to 3,877. Inventory shrank 30.0 percent to 5,005.

Prices moved higher as Median Sales Price increased 1.9 percent to $392,250. Months Supply of Homes for Sale went down 12.5 percent to 1.4 months, indicating that demand increased relative to supply.

Despite a drop in existing-home sales, home prices have remained near record highs, with a national median sales price of $410,200, only 0.9% below the all-time high of $413,800 recorded in June 2022 (NAR). With only 3.1 months’ supply heading into July, the lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets, where competition for homes remains particularly strong.

A Closer Look