US Home Builder Confidence Rises – Charlotte New Construction Sales are BOOMING!
There are 3 factors that substantiate our statement that the Charlotte real estate market is in full 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 with start data of 706,000. We are also seeing a surge of activity in the new construction market in the Charlotte market as well. Many communities are selling out quickly and the construction jobs are opening up in the Charlotte metro region as well–both factors that are excellent economic factors in a recovery.
- 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.During the past 12 months in the city of Charlotte, 8,880 single family homes were sold; of those sold properties in Charlotte last year, 1,151 were distressed, roughly 13% of all sales were distressed properties. Year-to-date (since January 1, 2013), 390 distressed properties Closed of the 3,323 total sales, approximately 11% of total sales in Charlotte were distressed properties.
- 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 in March. Currently there is a 4.8 month supply, a 49% reduction year-over-year. 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.
Home-builder confidence in the market for single family homes rose in May despite increasing building materials costs.
“Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable
mortgage rates and strengthening local economies,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “This is definitely an
encouraging sign even amidst rising challenges with regard to the cost and
availability of building materials, lots and labor.”
Thinking of buying new construction in Charlotte NC? Read these articles before you do!
© Debe Maxwell | The Maxwell House Group Real Estate | SavvyBroker@me.com | US Home Builder Confidence Rises – Charlotte New Construction Sales are BOOMING!