I read a great article yesterday on cnnmoney.com. It was discussing the home values of the 299 biggest real estate markets. they were talking about how prices were in relation to the market values in the area. As a seller the news was good. As a buyer the news was great. Charlotte area was tied fro 15th place among the 299 markets for the most undervalued home prices. What does this mean?
Well it means that buyers are buying the homes for an average of 6% less than the market value of the home should be. For buyers that means they are purchasing homes for a slightly better value than the true market value of the home. for sellers, it means they are getting close to the market value of what there home should be. In a perfect scenario the average price would be 0% of the market value. you always want to see it on the plus side of the percentage. When the numbers are on the negative side it means that home prices have not stabilized yet and the bottom has not completely dropped in terms of how low the values will drop.. When you are in the plus side the market has stabilized and home values are actually beginning to creep up.
With all the negative publicity of home values and the talk of people being owing significantly more than there home si worth the trend for Charlotte is a good sign that the housing prices are beginning to stabilize and a balance is beginning to develop.
This is still a win win situation for sellers and buyers. Sellers can rest assured that the values of their homes has hit bottom and is climbing back up. buyers still can get in low enough to build almost instant equity in their home purchase.
The resilience of Charlotte Area and the fact when home prices in most of the country were skyrocketing at double digits each year...Charlotte maintained a steady increase. That steady increase has helped it absorb the housing bubble burst better than most regions in the country.
Dave diCecco
www.davedicecco.com
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