The Charlotte (city) numbers are actually considerably better. The question is, how long can Charlotte home prices continue to rise at this pace? Not forever, of course but, our estimation is that rising prices will curtail towards the end of the year, leading into increased mortgage interest rates in early 2014.
We simply cannot continue at this pace but, sellers are finally enjoying modest rising home prices, especially in the inner city areas.
There are 3 factors that substantiate that our Charlotte real estate market is in recovery mode:
- New Construction: Nationally, privately-owned housing starts in March of this year were at a seasonally adjusted annual rate of 1,036,000. This is 7% above the February estimate of 968,000 and is 46.7% above March 2012 start data of 706,000. We are also seeing a surge of activity in the new construction market in Charlotte as well. Many communities have sold all of their lots and construction jobs are also on the rise in the Charlotte metro region.
- Distressed Properties and Mortgage Delinquencies: Mortgage delinquencies and foreclosures are down 3% year-over-year, according to Lender Processing Services, Inc. (LPS), a leading provider of data and analytics to the mortgage and real estate industries. This data represents March 2013, month-end mortgage performance statistics; the loan-level data represents approximately 70% of the overall market. According to LPS, we are also seeing a slight reduction in foreclosure inventory; foreclosure properties are under 5-million, for the first time in 5 years.
- Resale Data: Finally resales rose in March, marking an 8% increase over March 2012 sales in the entire Charlotte MLS. All home sales were up 24.2% year-over-year in March. As well, March 2013 resales improved 3% over February, 2013, despite the low supply of inventory.
Inventory in the Charlotte (city) real estate market has seen significant movement from a buyer’s market last year (9.8 month supply) to a seller’s market in 2013, with only 5.2 months supply of homes for sale on the market. Bear in mind that a 6-month supply is a neutral market, below 6 is a sellers market and above 6 is a buyers market.
“Charlotte-area home prices continued their upward movement in February, rising 6.2 percent on average from the same month a year ago, according to the Standard & Poor’s/Case-Shiller home price index released Tuesday.”
See the full story on www.charlotteobserver.com
We always love being quoted in the Charlotte Observer and appreciate the trust that the journalists place in our opinion. I still, always wish that I could have said more–this market is just SO remarkable!
© Debe Maxwell | Savvy + Company Real Estate | SavvyBroker@me.com | Charlotte Home Prices Rise 6.2% from a Year Ago (Charlotte Metro Region)