Is the Charlotte Housing Market Stabilizing For 2011?

This has been the question on everyone's mind for the past two years. When are we going to hit the bottom? When will prices start to stabilize and then slowly increase back up to normal levels?

Well to answer those questions is going to be purely speculative venture. Noone, despite their credentials, can predict what the future holds. Did anyone think the President would negotiate a back door deal with Replubicans? So, all we have to go on is the statistics and the trends that are showing right now how the market is doing.

Nationally, the news has done a great job of portraying a gloom market. But is that the case across the country? No.Certain pockets of the country are still feeling the effects of inflated home prices; while other parts of the country are stabilizing and some are seeing growth.

Charlotte Nort Carolina Real Estate market is one where home prices seem to be stabilizing right now. The trends are not the decrease that was seen over the past two years. There is still bumps in the road and there will always be bumps in the road to growth.

However; over the past six months home prices have pretty much stayed stabilized in neighborhoods in the Charlotte area. Some months have seen a spike and others a slight decline but average out to be along a flat line right now. Does this mean prices are going to rise in 2011? No. I cannot predict what the future holds for home prices. The economy and the road to recovery have a major factor in that.

But another interesting trend pointed out to me in a recent article was sellers lowering home prices. Of the 28 majpr markets that they tracked Charlotte North Carolina was one of only TWO markets where the percentage of sellers lowering their prices decreased from last year as of November 2010.

Those are two indicators. As companies are relcoating to the Charlotte area jobs are growing. Charlotte has been blessed with having the second largest banking captial in the Untied States outside of New York. Companies are relocating to the Charlotte area and creating jobs in turn.

That coupled with the flat line pricing and the amount of sellers decreasing their asking price are indications that the Charlotte market has seen the bottom and has only up to go from here. As long as the government keeps interest rates low the affordability ratio is extremely high and the demand will increase as people realize they can own a home for less than they are paying in rent right now.

So, if you are looking to buy in Charlotte right now...the time may be right. Home prices are at 2006 levels. Interest rates are at historic lows and job creation (though slowly) are starting to be created here.

Dave diCecco
Realtor/Broker
www.davedicecco.com