2013 Forecast for South Charlotte NC Real Estate Market
Developing my real estate market forecast for South Charlotte, NC for 2013 takes both science and art. The science comes from looking at the hard housing data from reputable, reliable sources. The art comes from drawing my own conclusions from the data and my personal experiences, and forecasting what I think the South Charlotte real estate market will look like in 2013.
I am thrilled to report that I am BULLISH about the housing market in South Charlotte! Based on the numbers, and my own experience with buyers and sellers in this area in 2012, I am optimistic that 2013 will mark the year that Charlotte finally rises out of the 5-year market slump! The rise began in the latter half of 2012: sales were up and home prices were up in South Charlotte NC! Are you READY to buy or sell in 2013?
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Let's Look at the Real Estate Market Data for Charlotte, NC
At the close of December 2012, here is what the real estate market in Charlotte NC looked like. All of these numbers are compared to December, 2011, so this is a year-over-year comparison:
- Inventory of homes for sale in Charlotte NC has fallen 27.7% from December 2011, the lowest it's been in over 10 years.
- There is no a 5.3 month supply of homes for sale, signaling a seller's market.
- Closings in Charlotte increased 23.4% year over year in December to 2,339 closings.
- Charlotte has experienced 11 straight months of positive growth in sales.
- Both the average and median sales prices in Charlotte were up at the end of 2012. Average sales prices were up 7.9% in December to $205,537, and average median sales prices were up 2.5% to $158,925.
- Pending sales were up 33.5% from December of last year.
- Average list price increased 4.5% to $222,888.
- DOM (list to close) decreased by 2 days to 156.
- Sales of distressed properties in Charlotte decreased to 15.6% of total sales
Let's Look at the National Real Estate Market Picture
- The National Association of Realtors (NAR) projects a record-high housing affordability index for all of 2012, up from 186 in 2011, which was the previous record high. This index looks at the relationship between median family income and median home prices and average mortgage interest rate. This means home buyers are WELL-WITHIN their means to buy a house.
- Mortgage interest rates are still at historically low levels. Fannie Mae forecasts that rates on 30 year fixed mortgages will rise from 3.3% in Q1 of 2013 to 3.5% in the remainder of the year.
- Fannie Mae forecasts that existing home sales will rise by 9.6% in 2013, and new-home sales will increase by 19.5% in 2013 if the housing recovery remains steady.
- Standard & Poor's/Case-Shiller's latest20-city index revealed a home price increase of 4.3% in October. This follow a 6.9% increase overall since January of this year. This is the largest gain in home prices since 2005.
- NAR reports that national median sales prices have increased year-over-year for 9 straight months, the longest streak since 2006.
- The Dow Jones home construction index shows that the stock prices of US homebuilders was up over 75% this year, signaling confidence in new home building.
- J.P. Morgan Chase forecasts a 3.4% to 9.7% increase in US home prices in 2013. In fact, almost 3/4 of investors surveyed by J.P. Morgan Chase expect home prices to increase in 2013 by 5%.
- Investors continue to flock to the housing market with renewed vigor, understanding that real estate provides the best risk-adjusted return on their investment.
- A Fannie Mae survey on consumer confidence showed that 43% of consumers believe home prices will go up in the next 12 months. 49% of those surveyed believe rents will increase in 2013. 22% believe that now is a good time to sell a home, a 10 point increase from a year ago.
My Forecast for the South Charlotte Real Estate Market 2013!
Because of the local Charlotte and national data listed above (science) and my own experience with buyers and sellers in 2012 (art), I am bullish on the 2013 South Charlotte real market!
Here's why I think South Charlotte will enjoy increased sales and increasing home values in 2013:
- There is pent-up demand among Charlotte homebuyers for well-priced homes in good condition.
- We are experiencing bidding wars and multiple offers on the best homes.
- The number of distressed properties (huge drag on home values) has decreased.
- With rising home prices, fewer sellers are "upside down" and they can now afford to sell their home.
- Buyers who have been on the fence waiting for the the South Charlotte real estate market to hit the bottom, will hear of price increases and will jump into the market.
- More new households are forming, and homebuyers are feeling a bigger sense of urgency.
- Housing starts are increasing in the Charlotte area to satisfy buyer demand.
- Doomsday scenarios about the "fiscal cliff" didn't come to fruition.
- Buyers may want to enter the market while historically low interest rates increase their purchasing power.
All of the above paints a pretty rosy picture about the forecast for the South Charlotte real estate market in 2013. My bold prediction is that by the end of 2013 (assuming no catastrophes in the economy!) home values in South Charlotte will increase by 5%, and that sales will continue to increase at a fast clip because of pent up demand.
What do YOU think will happen in the South Charlotte real estate market in 2013?
South Charlotte Real Estate Expert
Buying or selling real estate in South Charlotte NC is really about lifestyle choices - finding the best neighborhood, home, school, and location to fit your family’s lifestyle. That’s why it’s important to partner with a Realtor® who will really listen to your needs and goals and who will work tirelessly until your transaction is completed to your satisfaction! Whether you are thinking about selling your South Charlotte home, or would like to buy a home in South Charlotte, I look forward to showing you why I’m not your ordinary Realtor! I use cutting-edge technology to market my listings and to attract home buyers who want that South Charlotte lifestyle!
Let me put my knowledge and experience to work for YOU! For more information on how I can best serve you, please fill out the online contact form or call, text, or email me.
Melissa Brown, ABR, SFR
Helen Adams Realty
704-654-9700
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