North Carolina Housing Market Analysis - July 2024
The North Carolina housing market in July 2024 presents a nuanced picture, reflecting both positive and negative trends across various metrics. This analysis delves into the key data points to provide a comprehensive overview of the current state of the market.
Price Trends
The median sales price for homes in North Carolina stands at $382,900, marking a slight decline of 1.9% year-over-year (YoY). Similarly, the median list price has decreased by 1.2% YoY to $394,400. Despite these declines, the median price per square foot has increased by 2.8% YoY to $208, while the median list price per square foot has seen a more substantial rise of 5.5% YoY, reaching $215. These figures suggest a market where sellers are adjusting their expectations, but the value per square foot continues to appreciate.
Sales Activity
Sales activity has shown a positive trend, with 13,586 homes sold in July 2024, representing an 8.2% increase YoY. Pending sales have also risen slightly by 1.2% YoY to 11,334. New listings have grown by 6.5% YoY, totaling 15,294. This uptick in sales and new listings indicates a robust demand and a dynamic market environment.
Inventory and Supply
Inventory levels have surged by 27.5% YoY, reaching 36,446 homes. The months of supply, a critical indicator of market balance, has increased significantly by 40.0% YoY to 2.7 months. This rise in inventory and supply suggests that the market is shifting towards a more balanced state, potentially easing the competitive pressure on buyers.
Market Dynamics
The median days on market have increased by 3.0% YoY to 36 days, indicating that homes are taking slightly longer to sell. The average sale to list ratio has decreased by 0.9% YoY to 98.5%, and the percentage of homes sold above list price has dropped by 10.0% YoY to 23.8%. These changes reflect a cooling in the market's competitive intensity.
Price Adjustments and Off-Market Activity
Price drops have become more common, with 32.9% of listings experiencing a reduction, up by 10.3% YoY. Additionally, the percentage of homes going off-market within two weeks has decreased by 12.1% YoY to 37.4%. These trends suggest that sellers are becoming more flexible with pricing, and homes are not moving as quickly as they did in the previous year.
Conclusion
In summary, the North Carolina housing market in July 2024 is characterized by a mix of declining prices, increased sales activity, and rising inventory levels. While the market shows signs of cooling from its previous highs, the continued appreciation in price per square foot and the increase in new listings indicate sustained interest and activity. Buyers may find more opportunities with the increased inventory and longer market times, while sellers may need to adjust their strategies to align with the evolving market conditions.
