October 31, 2023

Southeast Cross Market Insights Report - October 2023

October 31, 2023
Southeast Cross Market Insights Report - October 2023

We are pleased to release our latest Southeast Cross Market Insights Report covering Atlanta, Birmingham and Charlotte for October 2023. Here is a high level overview of the findings for those markets.

In summary, active listings grew last month as closings declined and the volume of new listings remained flat. While average purchase prices in all three markets had been rising steadily since Q1 2023, sale prices declined last month in Charlotte and Atlanta. Sale to original list price percentages (STOLs) across all three markets have held steady at sit at 98% - unchanged from last month. While purchase prices on a p.s.f. basis had posted a V-shaped recovery since the start of the year, they saw a decline last month while list prices remained mostly unchanged. Affordability continues to be a burden on prospective buyers in ATL, BHAM, and CLT. Mortgage rates have edged up steadily since April 2023, while home prices–by comparison–have remained mostly unchanged.

Atlanta Listing Activity - after declining for seven consecutive months, active listings have been on an upward trajectory since May—though still far below normal volume

Birmingham Listing Activity - Birmingham saw active inventory increase during Q3. New listings and closings have decreased over the same time period

Charlotte Listing Activity - Listing volume in Charlotte experienced a precipitous decline beginning in September 2022. The number of active listings has rebounded, albeit marginally, since bottoming in May 2023

Absorption Rate Comparison

Average STOL% for Active Listings - Properties are still seeing little discount to original list price, with STOLs averaging 98% across all 3 markets

Atlanta - Purchase/List Price Per Square Foot - The gap between list and sale pricing on a per square foot basis has converged since the beginning of 2023. Despite mortgage rates rising to the mid 7s, prices continue to rise

Birmingham - Purchase/List Price Per Square Foot - Since July 2023, average list prices p.s.f have remained relatively flat while average purchase prices p.s.f. have decreased

Charlotte - Purchase/List Price Per Square Foot - Since the January trough, sale prices had been steadily increasing while list prices p.s.f remained flat. Over the past two months, however, sales prices p.s.f. declined, causing list and sale prices to diverge

Retail Affordability - The disparity between affordable housing and current market pricing is most pronounced in Charlotte. Despite median wages standing at $75,000 per year, home prices continue to average over $380,000

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