People are constantly asking us what is happening in the Charlotte home market.  Well there is some good news to share, but we still have a long way to go. First the good news, Charlotte Metro Area home sales increased for the fifth month in a row indicating the market may be stabilizing.

 

Single family detached home closings for January 2009 were at 1001, (one of the lowest number of closings in recent years) while in June closings reached 1858 homes. While this sales activity is a positive trend, we are still in for a long recovery period and we do not anticpate returning to the highs of 2007 anytime soon.

Here are some of the trends behind the nos:

  • First time home buyers are taking advantage of the $8,000 tax credit
  • Buyers are focusing on the resell market in well established communities...where they believe it's a safe investment
  • Homes under the $250K range are seeing the greatest activity
  • Interest rates for conforming loans (Under $417K) have continued to remain low...
  • The average Charlotte home sales price has seen an uptick after several months of decline
  • The average home sold for 92.9% of list price....with higher priced homes and foreclosures seeing a greater discount

What does this mean for you as a seller or buyer?  

 

Buyers:

If you are considering buying a smaller, larger or just a different home, there is a limited window of time to take advantage of low prices and low interest rates.  If you are considering building, builders are offering some of their best prices in years due to lower material prices and labor costs.  According to a recent Wall Street Journal news article here are some things to consider:

  • Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they were first considering it, instead of continuing to pay rent.
  • Financing is fickle. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
  • Interest rates are headed up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same\Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they were first considering it, instead of continuing to pay rent.

Source: The Wall Street Journal, Douglas Heddings (07/27/2009)

Sellers:

If your home is currently listed or thinking about selling you will need both patience and flexibility.  Every situation is different, but in general it will take longer to sell your home than in past years.  The average days on the market (known as DOM) for June sales was 120 days.

 

There is a tremendous amount of inventory on the market, your homes must stand out and show well....if people can't imagine how they can live the home, then they will quickly move on to a different listing.

Finally, know your competition!  A good understanding of your home value in comparison to the rest of the market is essential.  If you have questions regarding your market value, we can assist you. 

 

Questions regarding your specific home or submarket?

Simple email us at gina@mayesharrisrealty.com and we will be glad to help.