CHARLOTTE, N.C. — Across North Carolina the number of homes sold dropped. According to Redfin, home sales fell 21% in September compared to the same time last year. This comes as home prices jumped nearly 4% during that same time frame.

 

What You Need To Know

  • Required annual income to buy a house hit a record high nationwide

  • Home sales dropped in North Carolina as prices jumped 4%

  • The Charlotte market saw a 13% increase in months of supply in September

 

Nationwide the annual income to afford a home reached an all-time high.

Charlotte sales dropped around the same rate as they did around the state, by just under 25% in September, according to Canopy Realtor Association.

Higher interest rates this year are a driving force for fewer sales, but Tiffany Johannes, president of Canopy, works in the Charlotte market and said some areas in the region are thriving.

“Recently, we’ve seen Belmont, Lake Norman and Uptown seeing an uptick and some of the outlying counties that are part of our Charlotte region like Alexander and Montgomery,” she said. “In the outlying counties you’re seeing builders go out for more affordable housing. So, those builders are having products come online and buyers are purchasing them. Oftentimes with new construction, you can do a 2-1 buy down, which is advantageous to a buyer in today’s interest rate market.”

Aside from high interest rates, high home prices are keeping people out of the market. Redfin reported the U.S. hit a record high for required income to be able to afford a median priced home for $420,000. In Charlotte, the median sales price for a home is $380,000. Johannes says those entering the market need to come prepared if they plan to see the purchase all the way through.

“They’re not entering the market without getting that full pre-approval, having that lender conversation and putting together that strategy with their buyer’s agent,” she said. “It’s important that you come prepared to the market, so that you know what your costs are going to look like and you’re making the wisest decision  for your family.”

Johannes added with fewer sales in the market, inventory is starting to accumulate over time, increasing Charlotte’s months of supply by 13% in September compared to August.