Charlotte Home Prices- Steady As She Goes In January, Even As Sales Slow
February 5th, 2008 Categories: Buy A Charlotte Home
Charlotte Real Estate Market Report-Residential Single Family Homes
January ‘08 Homes Prices, based on the Sold Average Cost Per Square Foot remained at $109/ sf, identical to the record setting January ‘07 prices, keeping todays home prices 8.18% above January, ‘06
11.3% above January, ‘05. Even as Charlotte weathers the dramatic slowdown in home sales, with 27% fewer single family homes sold, valuations remain rock solid.
The three month trend line, a more accurate reflection because of the larger number of sales, is virtually identical to the January numbers. For the 3 months ending 1/31/08, the average sold cost per/sf was $109.92, versus $109.73 for the same period ending 1/31/07. And sales were off 24% for the same period.
So why am I celebrating no appreciation you ask… a good question. The short answer is because around the country home prices are falling- double digit drops in some cities. According to Radar Logic, the wall street firm used by the Wall Street Journal and Bloomberg TV, 20 of 25 national MSA home prices fell in November.
Boston home prices- off 5%
Chicago home prices- off 3.8%
Atlanta home prices- off 7.1%
Miami home prices- off 10%
Lois Angeles prices- off 10%
San Diego prices- off 17%
Sacramento Prices- off 18%
WOW. Now do you see why I am happy that Charlotte home prices have remained steady? And remember, our unit sales did slow dramatically, 24% in the last 90days, just like these depreciating markets.
So why is that? Why has Charlotte performed so well? is it likely to continue as well? To be entirely accurate, it would be a
long answer, but the main reasons are clear: Charlotte creates jobs way faster than the national average- this past year over 21,000 new jobs a 2.6% increase, nationally the number was 1.1% and the 2nd is that these are well paying jobs, adding to the areas income and demand for housing. Charlotte remains the “Only Objectively Affordable “ major city in America, according to Radar Logic’s square foot analysis.
I was asked today, will it continue? There is no sign our local economy is slowing…so yes I do expect it to continue.
However, it’s not all roses in Charlotte. The new home industry is contracting swiftly trying to get to manageable inventory levels, and will build many fewer new homes in 2008 than 2007. What started as the sub-prime fiasco has now turned into a low grade credit crisis nationally, and it will be harder to buy a home in 2008, affecting ours sales as well. While I report on averages here, there are some areas of Charlotte where prices have fallen, some are significant, while some prices continue to rise. Choose your areas wisely.
I do believe it is more important than ever you employ high quality and knowledgeable buyer agents to take advantage of the opportunities, rather than being taken advantage of…
Thinking about moving to Charlotte? Facing a job transfer, a quality of life move, or just want to come for the weather?
Like more photo links, read on, or Like to Search for Charlotte Homes
Facing a job transfer, quality of life, or just need better weather… these are the 3 most common reasons for moving to Charlotte. Like to see more Charlotte Homes and Communities?
Want more Charlotte information? If you’ve never visited Charlotte, try my video on the right hand column,
it is fact-filled and has been well received. Then if you like try some of these category posts…
A related post- South Charlotte Homes For Sale and Appreciation Report.Most folks like pictures, and I like taking them, so I’ve published more than 1500 pictures
divided into 45 galleries, divided by community, area
and fun things to do, see them at: Uptown Dilworth, SouthPark, Ballantyne Country Club, High Gate and more. Pictures are of Sunny Lake Norman, The Levine Musem of the New South, and our in-town University, Queens of course.
Concerned about the market? Here are couple of recent articles about the strong Charlotte real estate market by Forbes.com and ABC News
To learn more about me, and my business in Charlotte, visit TerryMcDonaldRealEstate.com, my easy to use search for houses, condos, land or multifamily~
Please don’t hesitate to call me direct with your Charlotte real estate needs and questions, 704-351-1519
Good news on Charlotte prices stable, when they are tanking in a lot of places. Like you told me on the phone, homes may even be undervalued as opposed to overvalued, so good long term investment, wish I had a bit of extra cash….
Hilary Shantz, Oakville, Ontario
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