Local Market Update – How Hot is Waxhaw?

If you live near us (Waxhaw, North Carolina, a suburb of Charlotte), you probably agree that it’s almost impossible to be in a social setting and not have the topic of real estate come up. It’s definitely the latest buzz/hot topic of conversation around here. I don’t think this is unique to conversations with me because I’m a real estate broker. I think everyone is talking about real estate because the market is so insane in our area. I’d venture a guess that similar conversations are happening all over the country. From what I read, this certainly isn’t a Charlotte phenomenon. But what I care about most is what happens in my neighborhood, in my town, in my area. As a homeowner, I want to know what my neighbor’s house is selling for and I want to know what my home is worth. As a broker, I want to know what inventory looks like across our market, what offers are winning deals in multiple offer situations (which is most situations), and how high these prices are going.

Our MLS makes this a little easier for me to study each month because they create an awesome graphic. If you know me, you know I love stats and data. (You can take the girl out of accounting…) Check out the link below provided by Canopy MLS which shows data from May of 2021. I ran this for Union County, which is where Justice Real Estate Partners is located and where we focus most of our attention. If you’re curious about other areas of Charlotte, I can get that data for you as well.

Union County May 2021 Stats – Canopy MLS

Some highlights:

• Months Supply Inventory was 0.5. This statistic tells us the balance between supply and demand in our market. If no new houses were listed, how long would it take for us to run out of houses based on those currently available for sale? In May, that number was 0.5 months. Half a month. This is super low. A balanced market is between 4.0 and 6.0. Below 4.0, sellers have the negotiating power, and above 6.0, buyers are in the driver’s seat. We were at 0.5 in May, so I think that will answer the question I often get of, “Is it still really a seller’s market?” Yes, yes it is.
• Inventory of homes for sale compared to last May is down 65.9%! We had 689 houses for sale last May, and only 235 this May.
• Days on the market is also down almost 65% compared to last May. That tells me that part of the reason our inventory is so low is because homes are selling immediately upon being listed.
• Average sale price is up 16.1% compared to last May. This is the topic I hear discussed the most by the pool or in the cul de sac. I think we are all, myself included, amazed each time we see a new listing go up for so much higher than we ever thought possible. And then, we see that Under Contract sign rider go up a day later. Prices are skyrocketing. I often tell clients that it seems like with each new sale in a neighborhood, we are raising the bar. A new comp is created each time a house closes for a higher dollar amount. Buyers are finding ways to purchase at these prices even when the going gets tough, which sometimes means bringing more cash to the table upon getting a low appraisal.
• New listings, pending sales, and closed sales are all up compared to last year. If you remember May of 2020 (I know some people would like to forget last spring!), it was a strange time. The housing market definitely paused for a bit as people weren’t comfortable having showings in their homes, many people were staying in, and there was so much uncertainty. This year we are making up for that pause. Which might beg the question, if there are more listings, why is inventory still low? I’d say because they sell as soon as they’re listed. There is so much competition from other buyers, the demand is still drastically outweighing the supply. Economics 101!

The question I get often that we can’t see on this chart and that I don’t have an answer to is, “How long is this going to last? If we sell in six or eight years, will our home even be worth this much at that point in time?” I wish I could break out a crystal ball. I can study the current market like it’s my job (because it is), but I can’t predict the future. I’m just as curious as you are to see if this drastic appreciation in prices will be sustainable long-term. For now, I’m trying to help my clients buckle their seatbelts and join them on this crazy ride. If you need to sell, clearly now is a good time to take action. If you need to buy, it’s possible! It’s not easy, it’s going to take strategy and maybe some patience and time, but we can do it.

Finally, to answer the question “How Hot is Waxhaw”…the answer is very hot. The real estate market, the air temperature, it’s all hot. Please hit me up with any questions about our local market, or really anything real estate related. It’s fun for me that a topic I’ve always found interesting is now something everyone is talking about! Let’s chat!