Home prices In Charlotte Still Declining

For the past few months the trends and reports showed the economy was coming out of the recession. One large indicator of how the economy is doing is home sales and values. The sale of homes sparks consumer confidence and is a driving force behind economic recovery. As people become more confident in their jobs we tend to start buying those items we held off on due to the uncertainty of the economy. Usually home sales trigger a positive sign the economy is on the rise or fall.

However; as I have been taking note of recently it seems all the numbers for home prices stabilizing and the economy recovering seem to be a little pre mature. One large indicator in home prices is the amount of foreclosures on the market. As banks get straddled with an excess of inventory; they are trying to sell it off quickly. Thus, the prices are below market values and triggers a depreciating home values in the area.

I read an article yesterday in the Charlotte Observer that was discussing this such issue.When it looked like we were coming out of the home prices declining at an alarming rate; the experts predict we may now have not seen the bottom of home prices. Foreclosures were down substantially in 2009 from 2008. A great sign the economy was on the road to recovery. it meant more people now were able to afford to keep their home and jobs were going to begin to loosen up.

However; through the first six months of this year foreclosures have spiked unexpectedly to record levels in the Charlotte area. Based on the first six months of the year ; the article points out at this pace we will eclipse the previous record for home foreclosures in the Charlotte area by over 15% form 2008.( the worst year on record).

this influx of homes that are going to be banked owned is going to continue to drop and lower the prices fo the area substantially. Just when it seemed we had hit the bottom of the curve with home values; it looks like they are about to take an other plunge downwards according to economists quoted for the story.

Dave diCecco

Realtor/Broker

www.davedicecco.com