Charlotte NC Real Estate Update, SEPT 2009
The salability of their home on the market seems to be at the forefront of Sellers' minds during in mid-October. There are thoughts that this may be a good time to take their home off the market until the springtime when the “market improves”, but, this year, there are several reasons not to this:
1. We believe that the market will continue to improve in terms of the number of sales, but that prices will continue to soften until the rate of employment increases.
2. More people with jobs means more people can afford to buy a home. Estimates by most local and national economists believe employment numbers may begin to improve in mid year.
3. Prices will soften if interest rates increase. There is no question that current mortgage rates are at historic lows and that sooner or later rates must increase. A higher rate of interest will mean less buying power for homebuyers and this too will have a negative impact on home prices.
4. Historically, more new listings are placed on the market in the springtime than at any other time of year. More listings equal more supply equals more listings trying to compete to attract the same buyer pool.
Devaluation of property occurs the longer a home remains unsold. If home prices are falling at 4% annually then a $400,000 home devalues at $16,000/year, why not agressively price your property and continue to 'ride out' the market while other sellers are removing their home from the market for the holidays? As springtime approaches, you'll have far more competition. By leaving your home on the market during the winter months, you'll surely captuer the buyer that loves to shop in during this time and have less competition than in the spring!
Here are the September statistics for Charlotte single family and condo/townhome sales only, 9/2008 vs. 9/2009:
The median sales & DOM statistics for Charlotte single family sales only, since April, 2009 are below.