Sales of existing homes in the Charlotte region rose in September from a year ago, but inventory continued its downward trend, the Charlotte Regional Realtor Association reported Tuesday.
Closings were up 26 percent, to 2,825 from 2,243. The average sales price increased 7.5 percent, to $220,866 from $205,459.
While the market remains strong for sellers, buyers are facing a tightening supply of homes for sale. In a statement Tuesday, Eric Locher, the president of the association, warned prospective buyers about the low inventory, saying they should expect to face competing bids. As prices rise, though, that could encourage more sellers to put their homes on the market, boosting inventory levels, Locher said.
Charlotte-area inventory remains locked in what is widely considered seller’s market territory. The supply of homes for sale fell 9.7 percent from a year ago, resulting in a 5.4-month supply of homes for sale. A balanced market is generally considered one that has a six-month supply.
Sellers raised listing prices 6 percent on average, to $256,205 from $241,831. Buyers paid 94.6 percent of the listed price, up from 91.9 percent.
A low supply of homes for sale is credited for the yearly gains in home prices in the region and elsewhere. Real estate industry insiders say they expect to see home prices rising after falling steeply during the housing downturn, but many say the recent, sizable yearly increases aren’t sustainable.
Home sales could also be impacted by rising mortgage rates, which are expected to push some prospective buyers out of the market. According to mortgage giant Freddie Mac, the average rate for a 30-year mortgage in September was 4.49 percent, still a historically low level but up from 3.41 percent at the start of the year.
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