Real Estate is and always has been a long term investment so if an investment is long term, shouldn't there be a look back at more than one year? If you're going to compare something as long term as average pricing - there needs to be enough data which means more than last year's numbers!!!  A year or two isn't enough to get the big picture.

 A market report for previous months can absolutely be useful, it gives a recent activity analysis, but it is NOT equivalent to looking back at how that year fits in with the longer term trends meaning years past.
 
 You're not dating real estate, you're marrying it so be prepared for that - sometimes marriage isn't pretty when you're only looking short term! 

 Many of the market reports comparing recent data to last year leave out a significant piece of the puzzle...look at a snapshot and you won't ever see what's beyond the lens' reach. It's not about how this year compares to last year, it's about how does this year fit in the longer term puzzle...meaning at least several years back?

 Charlotte NC is again one of the few cities nationally named as having seen an average price increase last year (Seattle and Portland were the other two). By looking at the Charlotte market history an interesting trend emerges - the appreciation here has been gradual. Since countywide data is averaged, not all neighborhoods or areas have gone up as quickly as others (some even go down for a year or more), but the overall trend for the region is upward. 

 The average sales price for closed listings in Charlotte and Mecklenburg County in 2007 was $237,600, compared with $166,388 in 1999.


 There have also been a lot of reports that sales were slower last year - they were. Prices were up (good for sellers), Inventory's up (good for buyers). So who wins? Anyone looking to buy, and sellers serious about bringing an appealing product to the market.

 So let's look at the history. Below are the activity levels for single family homes in Charlotte and Mecklenburg County (includes Charlotte, Huntersville, Davidson, Cornelius, Mint Hill, Matthews, and Pineville) since 1999.
 Looking at 2000-2003, inventory was going up and sales weren't keeping pace until really 2004, 2005 and 2006 when the gap narrowed. Now the gap has widened back to right around 2003 with regard to sales relative to inventory. 

 Just remember that real estate is considered one of, if not THE best long term investment for a reason. When the long term picture comes into view, real estate is much less volatile and a phenomenal investment when you're prepared to hold onto it.

 It's also nice to have a home that's your own and not pay for someone else's investment which is what happens when you pay rent. That real estate you rent is an investment to someone and chances are they understand the big picture and value of long term trends. Buying real estate is not for everyone but if it's something you're considering it can be really helpful to look at the long term picture.

Diane McDermott
Real Estate Broker, REALTOR®
Diane@Southcharlottespecialist.com
e2 Real Estate Team, Banks Calkins Real Estate Inc.
www.e2realestateteam.com
"Exceeding Expectations"
*Statistics based on data from Carolina Multiple Listing Service, Inc. single family yearly reports for mls areas 1-9. Information deemed reliable but not guaranteed*