Yesterday morning the Standards and Poor Case-Shiller Home price Index was posted. The numbers they posted were not promising for the majority of markets in the country. For those unaware of what S&P is or does; it basically tracks the home sale prices for the 20 major metropolitian markets across the country. Their data and anaylsis is considered to be the standard by which the market projects.
The data is based on retail sales in the area. Charlotte, NC. was one of four major towns that saw their avergage home price decrease to levels lower than what some considered the bottom of the market in the spring of 2009. Based on their data the Charlotte market saw a .2% drop in prices and has yet to recover to the level it needs to be at to sustain a healthy housing market.
This bodes well for buyers entering the market. Becuase as home prices are not increasing the affordability remains high for them despite interest rates rising. For sellers, it could mean a slow first quarter of 2011. Charlotte prices are still up from 2000 levels ( a barometer that S&P uses). But not at the levels most people need to be able to sell their homes to move to a larger one or a smaller one.
It is not all doom for sellers out there. Buyers are buying and Charlotte was voted by Forbes magazine as one of the fastest areas in North Carolina for job growth this coming year. As noone can predict what next year holds for us; these indicators tell us that buyers are purcahsing and many well below their affordability means.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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