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

Charlotte North Carolina Market Starting to Stabilize

Charlotte, North Carolina was one of the last areas of the country to feel the housing collapse. Mainly becaue home prices did not skyrocket as quickly here as they did in other parts of the country. When other parts of the country were reporting double digit price increases each and every year during the boom; Charlotte was holding rather steady with inflation at a conservative increases. This made Charlotte one of the few areas of the country that economists agreed would probably rebound the quickest.

I was reading an article that was talking about existing home prices. The article was very informative and was talking about the statistics of sellers lowering their home prices in terms of a percentage of sellers who actually reduced the price of their home on the market. Back in the collapse of the market over 30% of the sellers were discounting their price. Now across the board the average for the period of March 1, 2010 to April 1, 2010 saw less sellers discounting prices. The number has dropped to a national average of 19%. Meaning a little less than 2 out of every ten sellers are lowering their asking price. That is a good sign that the housing market on a antional basis seems to be stabilizing itself.

The great news for Charlotte North Carolina area among major cities; we have the HIGHEST drop of all cities in regards to sellers lowering their home prices. Charlotte North Carolina saw a decline of an astounding 28% of sellers lower their home prices between March 1, 2010 and April 1, 2010. This lays claim to the fact that sellers and buyers seem to be more in agreement on what fair market value of homes in Charlotte are.

Even as we get closer to the end of the tax credit projections seem to be showing that sellers and buyers are agreeing more on what fair market value for a home should be. As the article and the study pointed out; with the tax credit due to end by the end of this month sellers are not panicking and buyers seem to be agreeing that home prices are fair.

Now to be fair this study does NOT include foreclosures in their numbers. These numbers represent actual home owners who have their homes actively listed on the market.

So, if you are a seller you should feel relieved that the market seems to be stabilizing itself. Buyers who are waiting to see if prices are going to dramatically fall before the deadline of April 30, 2010 may see themselves lose out on the house they want......

Dave diCecco

Realtor/Broker

www.davedicecco.com