August 30, 2023

Southeast Cross Market Insights Report - August 2023

August 30, 2023
Southeast Cross Market Insights Report - August 2023

We recently release our latest Southeast Cross Market Insights Report covering Atlanta, Birmingham and Charlotte for August 2023. This blog post provides a high level overview of those markets.

In summary, active inventory has consistently tightened in Atlanta, while active listings have recently risen in Charlotte and Birmingham. Closings and new listings have remained low across all markets, given homeowners have little incentive to list. In Q1 2023, average purchase prices reached their lowest point in all three markets. They have since rebounded and are approximately 2% shy of peak levels. In July, STOLs across all three markets converged at 99%. This is a dramatic change from the 4-6% discounts observed earlier this year. While purchase prices have posted a V-shaped recovery since the beginning of the year on a p.s.f. basis, list prices p.s.f have been relatively unchanged. In all three markets, assets with >60 DOM have continued to decline since Q4 2022, while those with <30 DOM have experienced minimal growth. With 20-year high mortgage rates and near all-time high sale pricing, median income households have become increasingly priced out of the market, particularly in Birmingham and Charlotte.

Since the the tail end of Q3 2022, active listings have been steadily decreasing. Meanwhile, closings and new listings have remained consistent since March.

Since May, Birmingham has seen a sharp increase in active listings. After making steady progress YTD, new listings experienced a significant drop last month.

Over the last three months, inventory in Charlotte has increased; however active listings and closings experienced a significant decline last month.

Absorption Rate Comparison

STOL percentages tumbled last summer through January 2023. Since the beginning of the year, however, STOLs have rebounded and converged at 99%.

Atlanta - Purchase/List Price Per Square Foot. Since January, average purchase prices p.s.f have increased MoM. However, average lists prices p.s.f have started to stabilize showing minimal MoM growth in 2023.

Birmingham - Purchase/List Price Per Square Foot. On a $p.s.f. basis, Birmingham posted all time-highs in for both sale and list pricing in June. Last month, however, both declined roughly 2%.

Charlotte - Purchase/List Price Per Square Foot. Over the past three months in Charlotte, the gap between list and sale pricing has shrunk, with sale prices gradually rising while list prices have largely remained flat. Average sale prices p.s.f. have reached levels comparable to those of July 2022 and are now only 2.3% below their peak.

Interested in learning more about Entera and our Market Insights reports?

Click here to request a consultation with our experts.