The number of closed residential transactions fell 10.7% in January compared to December, but increased 8.4% over that for January a year ago. Contracts written for the month increased a surprising 25% over prior month, indicating that the tax credit is continuing to have an effect and that, perhaps, the market activity overall is beginning to take shape for 2010.
Seller price concessions increased to 12.5% for January compared to 10.5% in December. A year ago we saw pricing discounts of only 9.8%, and in 2008, the average price reduction on contracted sales was just 6.4%. It is not clear whether the new home or resale segment of the market is most influential in these numbers, as those figures are not available separately.
Hopefully, the anticipated spring buying season and the impact of the home buyer tax credit will have a positive effect on our market as we move forward in 2010. As in other areas of the country, our market will need to benefit from an improvement in the job market and the housing markets from which so many people relocate to the Charlotte area.
Chuck Webb, Wilkinson & Associates, www.ChuckWebb.net, 704-724-2454
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