Housing Market Showing Signs Of Stabilizing In Charlotte?

The National Association of Realotrs is reporting that home sales grew 25% from last year in April. Does it mean that the housing market is starting it's long awaited comeback? Or is it a result of the Obama adminsitration home buyer tax credit expiration at the end of April? I think it is a little of both.

First, the hosuing market seems to be rebounding. Home prices are stabilizing and slowly in pockets of Charlotte rising. I think we have seen the bottom of the housing prices and will see some slow increases. Various economists who are tracking this agree with this conclusion for the Charlotte area.

Another reason for the housing market starting to show signs of coming out in Charlotte is the job market. Yes, Charlotte area has a high unemployment rate currently. But, there are jobs being created and more jobs are being created right now than being lost according to the North Carolina Unemployment Commission. The latest study showed that the unemployment rate held steady for the February and March and slighly decreased for the month of April. A good sign that we are starting to rebound. In addition major companies are beginning the relocation process to Charlotte area creating thousands of jobs and moving people into the region. Those peopel are in need of homes and will help the housing market in the Charlotte region.

Are the numbers a direct result of the tax credit? I think that the increase of 25% was a dramatic increase. The fact that if you were not under contract for a home by April 30, 2010 meant you clould lose anywhere from $6500.00 to $8000.00 meant some people who might have waited till June and July purchased homes at the end of April in order to benefit from the tax credit.

However; as economists are warning we are not out of the woods yet in terms of an economic recovery...they do agree we are on our way. Meaning, the bottom of the hosuing market has hit and prices will stabilize and start a slow process of increasing. Charlotte benefitted from not having the major housing price increases that other areas of the country did during the boom. Thus, we were able to sustain the decrease better than other areas and made us more ready to start to sustain a moderate growth..

So, yes the numbers for April are inflated but not enough to say we are NOT out of the housing bottom in terms of prices. People waiting to see if prices will continue to fall are finding out that they are actually staying the same and in some areas of Charlotte slightly increasing.

Dave diCecco
Realtor/Broker
www.davedicecco.com