Charlotte NC| 3rd Quarter Appreciation-Depreciation: Results by Zip Code
October 14th, 2008 Categories: Real Estate News
Charlotte is #1 in the 20 major US markets according to Case-Shiller…but Averages DO NOT Tell the Whole Story
This is the most comprehensive report I’ve written on Charlotte appreciation and depreciation. I start with the Charlotte area wide residential SOLDs and compare them to 14 zip codes and 2 general areas mostly to the south of Charlotte and to the North, including more distant locations like the West Lake Norman area and Rock Hill. You will see- averages do not tell the whole story! Not even half…
Like all
statistics, there are lots of “lies” in averages, (you remember the joke, there are “lies, damned lies and Statistics?) so the details by Charlotte area zip code- in our case 13 North Carolina zip codes, one South Carolina zip code, and 2 general areas, prove our point. Within our market area there are clear winners and losers, and a few areas that have come through unscathed. Once again, it proves the that median home price increase and decreases tell you almost nothing, as I compare the MLS reported Median to the actual median cost per square foot sold- a measure that adjusts for changing home sizes. I used 2 general area searches where zip codes didn’t reflect the market I was most interested in. These stats don’t include Condos, a subject for another post.
Because I wasn’t able to do the entire area, there are many areas of Charlotte that are missing- if you are considering a purchase in any of these areas not shown, call me, and I’ll do the research for your specific area. Terry
| Cost | CPSF | 3 Year % | Median | 3 Year % | |||||||
| # of | % Inc | median | Median | Per | %Inc/ | Inc/Dec | Price | Inc/Dec | |||
| year | sales | Dec | Sq FT | Price | Sq Foot | Dec | DOM | # Sales | CPSF | ||
| All Charlotte | 08 | 6339 | -32 | 2142 | 235000 | 110 | -6 | 98 | 39.58 | -1.67 | -1.81 |
| 07 | 9344 | -11 | 2154 | 252000 | 117 | 5 | 80 | ||||
| 06 | 10491 | 2139 | 239000 | 112 | 78 | ||||||
| South Charlotte | |||||||||||
| 28203 | 8 | 17 | -48 | 2267 | 565000 | 249 | -1 | 85 | 59.52 | 44.13 | 2.05 |
| Dilworth | 7 | 33 | -21 | 2289 | 577000 | 252 | 3 | 67 | |||
| 6 | 42 | 1607 | 392000 | 244 | 70 | ||||||
| 28207 | 8 | 19 | -49 | 3807 | 1133000 | 298 | -8 | 113 | 55.81 | -3.66 | -4.49 |
| Myers Park | 7 | 37 | -14 | 3684 | 1199000 | 325 | 4 | 85 | |||
| 6 | 43 | 3772 | 1176000 | 312 | 100 | ||||||
| 28209 | 8 | 36 | -50 | 2007 | 437000 | 218 | -9 | 86 | 52.63 | 16.53 | 8.46 |
| Myers Park | 7 | 72 | -5 | 2059 | 492000 | 239 | 19 | 51 | |||
| 6 | 76 | 1869 | 375000 | 201 | 41 | ||||||
| 28210 | 8 | 81 | -40 | 2274 | 335000 | 147 | -5 | 68 | 49.06 | 9.48 | 4.26 |
| Southpark | 7 | 135 | -15 | 2316 | 360000 | 155 | 10 | 49 | |||
| 6 | 159 | 2170 | 306000 | 141 | 50 | ||||||
| 28211 | 8 | 65 | -41 | 2729 | 555000 | 203 | 1 | 99 | 55.48 | 14.2 | 7.98 |
| Southpark | 7 | 111 | -24 | 2732 | 548000 | 201 | 7 | 47 | |||
| 6 | 146 | 2590 | 486000 | 188 | 59 | ||||||
| 28226 | 8 | 101 | -37 | 2578 | 405000 | 157 | -3 | 70 | 47.67 | 14.41 | 17.74 |
| Carmel-Rea Rd | 7 | 160 | -17 | 2808 | 453000 | 161 | 21 | 49 | |||
| 6 | 193 | 2653 | 354000 | 133 | 62 | ||||||
| 28105 | 8 | 112 | -45 | 2390 | 260000 | 109 | 1 | 73 | 49.55 | 8.33 | 2.83 |
| Matthews | 7 | 202 | -9 | 2352 | 255000 | 108 | 2 | 57 | |||
| 6 | 222 | 2272 | 240000 | 106 | 55 | ||||||
| 28270 | 8 | 106 | -32 | 2686 | 343000 | 128 | 1 | 85 | 38.01 | 0 | 2.98 |
| Arboretum area | 7 | 157 | -8 | 2840 | 361000 | 127 | 2 | 49 | |||
| Providence/rt51 | 6 | 171 | 2763 | 343000 | 124 | 47 | |||||
| 28277 | 8 | 206 | -41 | 2864 | 367000 | 128 | -6 | 90 | 47.85 | -9.83 | -3.76 |
| Ballantyne | 7 | 351 | -11 | 2919 | 397000 | 136 | 2 | 54 | |||
| Raintree, PCC | 6 | 395 | 3064 | 407000 | 133 | 48 | |||||
| 28278 | 8 | 108 | -30 | 2706 | 304000 | 112 | 2 | 110 | 24.48 | -8.43 | -18.25 |
| Southwest | 7 | 154 | 8 | 2537 | 278000 | 110 | -20 | 90 | |||
| 6 | 143 | 2430 | 332000 | 137 | 92 | ||||||
| Union County | 08 | 518 | -36 | 2893 | 353000 | 122 | -5 | 110 | 44.12 | 9.97 | -0.18 |
| North& West | 07 | 809 | -13 | 2798 | 361000 | 129 | 6 | 88 | |||
| 06 | 927 | 2626 | 321000 | 122 | 75 | ||||||
| 29732 | 8 | 140 | -13 | 2106 | 218000 | 104 | 3 | 82 | 19.08 | 5.31 | 8.33 |
| Rock Hill | 7 | 160 | -8 | 2028 | 204000 | 101 | 5 | 89 | |||
| 6 | 173 | 2149 | 207000 | 96 | 85 | ||||||
| North Charlotte | |||||||||||
| 28078 | 8 | 218 | -38 | 2499 | 279000 | 112 | -3 | 88 | 42.18 | -1.41 | 0 |
| Huntersville | 7 | 352 | -7 | 2473 | 284000 | 115 | 3 | 63 | |||
| 6 | 377 | 2518 | 283000 | 112 | 56 | ||||||
| 28031 | 8 | 93 | -35 | 2814 | 478000 | 170 | 6 | 109 | 44.64 | 2.36 | 1.34 |
| Cornelius | 7 | 142 | -15 | 2631 | 421000 | 160 | -5 | 83 | |||
| 6 | 168 | 2786 | 467000 | 168 | 56 | ||||||
| 28117 | 8 | 119 | -34 | 3023 | 493000 | 163 | -2 | 168 | 52.78 | -5.37 | -4.12 |
| Mooresville | 7 | 181 | -28 | 3044 | 509000 | 167 | -2 | 118 | |||
| 6 | 252 | 3072 | 521000 | 170 | 97 | ||||||
| 28036 | 8 | 61 | 9 | 3078 | 491000 | 160 | -7 | 101 | 23.75 | 3.37 | 4.58 |
| Davidson | 7 | 56 | -30 | 3115 | 535000 | 172 | 12 | 96 | |||
| 6 | 80 | 3106 | 475000 | 153 | 102 | ||||||
| West Lake | 8 | 102 | -36 | 2845 | 482000 | 169 | 1 | 141 | 44.26 | -6.41 | 1.2 |
| Norman | 7 | 160 | -13 | 2636 | 441000 | 167 | 0 | 88 | |||
| 6 | 183 | 3080 | 515000 | 167 | 101 | ||||||
A Few Conclusions…
Charlotte Home Sales
Charlotte Solds in 2008 are off area-wide 40% of 2006 numbers, 32% off 2007, reflecting the slow down that hit the nation in 2006 didn’t really arrive hear until last year, with only a few Zip exceptions. Fully 1/3 fell over 50%, with one zip code- Dilworth, falling nearly 60% in number of home sales. (Despite this decrease home prices rose in Dilworth for the 3 year period!)
The least drop in home sales came in two zip codes, Rock Hill SC and its North Carolina neighbor 28278 in southwest Charlotte, falling 19 and 24% respectively.
Charlotte Home Prices
They are literally and figuratively all over the map, with the highest 3 year appreciation of over + 17% in a zip code (28226) to a -18% over 3 years in zip code 28278. The average Sold Cost Per Square Foot city-wide was -1.81– see averages DO hide a lot! Also, check out hte diferrences between the Median Price (the number the MLS reports) and the Sold CPSF, and look at the wide variance. For example Union County, the MLS would report that the Median home prices went up 10% over 3 years- but the actual Sold CPSF went down marginally. Another great one was Dilworth where Median prices are up 44%, Sold CPSF? Just a 2 % rise, why so vast a difference? This reflects the dominance of sellers of smaller pre-renovation homes in 2006, and todays preponderances of sales of larger renovated homes–but the average Sold CPSF only rose 2.05%
Days-On-Market- the least reliable MLS stat still shows that with one or two exception, homes are taking between 50% and 100% longer to sell in 2008 than in 2006. Days On market- click to see why DOM is the least Reliable Stat?
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It is a strong buyers market here in the greater Charlotte area, Lake Wylie, Lake Norman, the whole area for new homes and re-sales.
Moving to Charlotte?
Have Questions? I am a Charlotte broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you. We work with Buyers and Sellers every day. You can quickly compare area prices with the map-based Charlotte home search below. Another good place to start is my fact-filled and well received Introduction to Charlotte Video (nearly 8000 You Tube views, 22 reviews) and don’t miss the FAQ videos in the right column (just under the Introduction to Charlotte Video Screen)
If it’s between the hours of 8 AM to 8 PM, EDT, please don’ t hesitate to call me direct at 704-351-1519. Terry
Related Links
Charlotte Home Search- Map & Community Based
Where to Look for Luxury Homes in Charlotte- Video
Hows the Charlotte Market- Video
Charlotte Real Estate- More Good Years Ahead
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Wachovia, The Market, and Charlotte Real Estate
October 7th, 2008 Categories: Real Estate News
Wells Fargo or Citibank? Charlotte waits and wonders…
It’s pretty clear, Charlotte favors the Wells Fargo buy out plan, a better business fit and more likely to keep jobs in Charlotte… with a recognizable bank too. Now we need the FDIC to weigh in. Ok, ok, so maybe Wells Fargo isn’t Batman….
A deal later today may be announced– memo to regulators, thank Citi for their time, get the Fed money off the hook and let Wells Fargo be Wells Fargo, a surprisingly well funded and well run commercial bank.
Lets go FDIC, Wells Fargo is clearly the superior choice.
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We closed the cash sale from last week yesterday- the client I wrote about last week, this client had moved their money out of The Market, were considering an 2nd home for her Mom, and facing large balances in under insured money market accounts, decided it was safer to buy a quality Lake Norman waterfront condo at a discount… safer then leaving it in the bank. With the state of the financial markets, lets hope others decide to do the same.
Cash is king- there is no doubt that the cash offer and quick close realized another 2-3% in price decrease for my buyers.
And Why are Investors and Home Buyers Still Buying Charlotte Real Estate? Glad you asked, keep on reading!
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The Standard and Poor’s Case-Shiller Report (20 major market home appreciation/depreciation report) was issued last week for the month of August, and once again Charlotte led the
nation with the least amount of home price decrease in the 20 major markets studied at 1.8%. I can’t recall quite how many months in a row this is… I think 9 consecutive months, but I do know Charlotte led the nation in 2007, and the first 2 quarters of 2008, and there are communities in Charlotte where prices are going up. That’s right, there are still upwardly mobile homes prices in Charlotte NC…. makes you want to hit a few golf balls, no?
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Because we can’t be doom and gloom all the time, our hats are off to the Carolina Panthers and their 4-1 start. They are playing well, the offense is clicking, and the defense has been superb- only occasionally do the coaches call pure cowardly offensive calls, I’m liking their prospects.
I also had the misfortune of traveling to Charlottesville Virgina to see the University of Maryland fall flat on their face and get pounded by a confident Cavalier team. Truly Maryland was pathetic, just aboput the most unprepared I’ve ever seen a team.
But the drive was extraordinary and the top was down most of the way!
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Moving to Charlotte?
Have Questions? I am a Charlotte broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you. We work with Buyers and Sellers every day. You can quickly compare area prices with the map-based Charlotte home search below. Another good place to start is my fact-filled and well received Introduction to Charlotte Video (nearly 8000 You Tube views, 22 reviews) and don’t miss the FAQ videos in the right column (just under the Introduction to Charlotte Video Screen)
If it’s between the hours of 8 AM to 8 PM, EDT, please don’ t hesitate to call me direct at 704-351-1519. Terry
Economic Winners In The Down Times: Bank Of America, Charlotte NC and Charlotte Real Estate Charlotte Real Estate- 2008 and Beyond, More Good Years Ahead
Safe to Buy in Charlotte? You Bet…
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Wachovia Updated…
October 1st, 2008 Categories: Charlotte News and Politics, Real Estate News
Charlotte NC| Wachovia Questions…
How many jobs? Speaking to Dr John Connaughton yesterday, the UNCC Professor of Economics who keeps his eye on the Charlotte economy, about 25% of Wachovia’s work force, or 5000 people will lose their jobs in the takeover–with as many as another 2500 in the companies who do business with Wachovia .
Quite probably 7500 jobs lost, but in perspective, “less than 1% of the area work force,” according to Connaughton.
Why Wachovia, and Why Now? It appears that once WAMU failed, Washington Mutual, the FDIC moved aggressively, and must have told a few people they were coming to Charlotte this past weekend… it appears word got out last Friday, the reason for the dramatic Wachovia stock price drop Friday, and the Feds were in to takeover/ or arrange the sale of the insolvent retail division. It is interesting that Citi guarantees the first42B of bad assets, while the FDIC has about 45B on hand, and Citi will get 10 to 15B back in the bail out for the bad assets, making the purchase price of Wahcovia a steal- $2B in cash, a net of 30B+/- in paying bad loans, and if it gets no worse, (42B bad out of 122B portfolio) they get all the branches , all the clients, and are instantly the 3rd largest bank in the US.
The Wachovia Cultural Center–It’s Future?
One thing we now know, that downtown office space has become more plentiful… The tightest market in any downtown in the nation, Charlotte’s Center City, or Uptown, has enjoyed the lowest vacancy rates in the nation for the last 2 years, under 2%, lower than Manhattan’s. The office building itself is secured, I’m working to check the status on the other buildings. The open Class A space is an opportunity to attract another hi-flying company to Charlotte.
The Case for Keeping the Jobs Here
In a joint statement from the Chamber of Commerce… “that all jobs should be retained here because the case for Charlotte is a strong one…” “The case is simple. We offer a labor force that is skilled in banking. We offer a cost of living that is 94 percent of the national average. And we offer attractive and affordable commercial real estate that is currently occupied by Wachovia or under construction. In addition, the Charlotte region has a transportation infrastructure and quality of life second to none. … And with Bank of America’s recent purchase of Merrill Lynch, we remain the second-largest banking center in the United States, behind New York City and ahead of San Francisco.”
Why?
from Bloomberg.com
“The collapse of Seattle-based Washington Mutual heightened concern about Wachovia’s $122 billion of option ARMs, according to Sean Ryan, an analyst at Sterne Agee & Leach Inc. in New York.”The liquidity crunch is pushing a lot of banks to basically face credit issues faster than they otherwise might have,” said Ryan. “When it became obvious that Wachovia would have a difficult time justifying the value of their option ARMs, it became clear that their tangible equity could potentially be wiped out.”
and in an email to employees, from Bob Steel,
“our challenges have primarily been a function of a single bad class of assets, the current environment and the unprecedented events of the past 10 weeks.”
$122B in Bad Assets - WOW. But, Citi sent 200 folks in to study Wachovia books to make the deal, and the$42B they have to cover, appears to be a sound number, a researched one.
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From Fortune Magazine, and the Fortune 500, Charlotte loses one in Wachovia, now we have 6 Fortune 500 companies headquartered here… still tied or ahead of Los Angeles, San Francisco, Ft Worth, San Antonio, Richmond, Tampa, Miami, and Atlanta. Here for the full list
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So we, all of Charlotte, took a hit in the stomach… it’s time to stand up and get back to work. Charlotte hasn’t gotten to where it is simply by enjoying the good times. The recession that’s coming to the nation will visit here as well- for the first time in 2 decades, but it will be shorter, and not as deep. Time for Charlotte to step up and lead, work throught the slow times, and then add another major company move or two, and get back up.
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It is a strong buyers market here in the greater Charlotte area, Lake Wylie, Lake Norman, the whole area for new homes and re-sales.
Moving to Charlotte?
Have Questions? I am a Charlotte broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you. We work with Buyers and Sellers every day. You can quickly compare area prices with the map-based Charlotte home search below. Another good place to start is my fact-filled and well received Introduction to Charlotte Video (nearly 8000 You Tube views, 22 reviews) and don’t miss the FAQ videos in the right column (just under the Introduction to Charlotte Video Screen)
If it’s between the hours of 8 AM to 8 PM, EDT, please don’ t hesitate to call me direct at 704-351-1519. Terry
Economic Winners In The Down Times: Bank Of America, Charlotte NC and Charlotte Real Estate Charlotte Real Estate- 2008 and Beyond, More Good Years Ahead
Safe to Buy in Charlotte? You Bet…
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Wachovia? Stay Steele-Strong Bob!| Congress Pass the Bailout Today!
September 29th, 2008 Categories: Real Estate News
If a bailout deal isn’t reached this weekend, or latest Monday, Wachovia will be taken over or sold, or both by week’s end.
WaMu Here we come. If Congress acts, Wachovia may survive, as will many other banks teetering on the edge.
Obviously this is important to the shareholders and bondholders of Wachovia, who stand to lose millions. It is important to the nation to head this crisis off before such a big name bank fails… and it is also important to the City of Charlotte. Wachovia, a Fortune 100 company has been a part of Charlotte’s history and is deeply tied to the area from its First Union days for atleast the last 3 decades.
Competition between Bank of America and Wachovia has been good for the banks, and good for Charlotte as BOA stretched coast to coast Wachovia felt compelled to follow… The takover of sub-prime King Golden West in 2006 shows just how much self delusion very smart people are capable of… This takeover, of a West coast bank that was a huge seller of sub-prime loans in California, is the first reason Wachovia finds itself on the brink this morning.
However, the 2nd reason is the same reason so many banks find themselves on the “Troubled Bank” List: Alan Greenspan’s easy money- no regulation policies earlier in the decade. No “bank style” regulations for Investment Banks? Poof. First it was Bear Stearns, then Lehmann brothers fell, and Merril sold to Bank of America (BOA)…
5 years of unregulated greed, and the five titans of Wall Street are no more.
Banks have margin requirements that protect them- (and their stockholders and bond holders) not junk “credit-swaps”, but the White House had drunk the anti-regulation Kool Aide: investment banks didn’t need “all that regulation.” A few believed otherwise. Then Treasury Secretary Paul O’Neil and Alan Greenspan argued for “bank style regulations” on investment banks in 2001. The instrument designed to protect investors, the so called “credit-swap” derivative, was called a “weapon of financial mass destruction” by Warren Buffet in 2003. At the end of the week, the last two big men standing, Goldman Sachs and Morgan Stanley “requested” to be put under the bank standards so the could borrow at the Fed window.
Competition and free enterprise are great for creating wealth, but its the regulations that provide the playing field and rules of the game that each team needs- so there is transparency and accountability. Imagine football, another expression of man’s competitive nature, being played with rules negotiated before each game and only one official. Free markets are an economic theory– this administration bet the house on it, and lost.
Wachovia has been good for Charlotte, and there is a good probability that regardless of ownership, it’s headquarters will remain here. It has also been good for BOA- it is probably too much to hope BOA is quietly working behind the scenes on their behalf, but they should be.
Lets give Wachovia and Bob Steele a chance… just say no to Wells Fargo and Citibank, go see the Feds, ask for patience, and lets see Congress pass the bailout Wachovia and others so desparately need. Depositors (of which I am one) sit tight- they are FDIC insured.
Ed: When I began writing this yesterday morning I thought it newsworthy… what a difference 24 hours make.
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