Charlotte Real Estate Update
Forbes.com released an article today that explains how September 2010 stacks up against August 2010 and Sept. 2009. I want to look at how Charlotte's real estate market in September 2010 compares to what we were seeing in previous Septembers.
Here are the numbers....
Charlotte's Real Estate Activity in September 2010:
What is interesting is that last month we had the lowest number of new listings, the lowest number of pending contracts, the lowest number of closed units, and the lowest list price to close price percentage.
Is this good news for sellers in Charlotte???
The lower level of total and new listings in our market not only helps sellers by there being less competition but it should also be an indicator that the market is recovering. What I think is scary for sellers is that the average list price in Sept. 2010 is the same as the boom years, but the average close price is back at the levels we saw in 2003-2004.
Notice the 88% list price to close price %.
This is much lower than what is normal in a "good market". This low percentage was caused mostly by the high number of distressed properties in the market (the foreclosures and short sales that have been selling at discounted prices). A couple weeks ago the Business Journal reported that in the 3rd quarter of 2010, Charlotte's foreclosures were up 34% year over year. With so many distressed properties still in our market, expect to see property values continue to drop for a few more months.
There are 50% less buyers in Charlotte's real estate market when compared to 2005-2007 and there is downward pressure on property values because of the high percentage of distressed properties. It is becoming harder for buyers to obtain financing and we are having more trouble getting the Charlotte houses to appraise. If you are a seller, make sure your house is priced competitively, in great showing condition, and be prepared to help today's buyer with closing cost money.