The Charlotte Real Estate market is booming and its happening very quickly. Real estate prices in Mecklenburg County appear to have bottomed out around March of this year and now they are coming back strong. November’s sales show that both median and average sales prices are up approximately 10% over last year.
When analyzing market stats, the patterns show that the number of home sales is the leading indicator. Increased home sales leads to decreased supply; and decreased supply leads to increasing prices. Conversely, decreased sales lead to increased supply, which leads to falling prices. Here are some interesting stats that show the bottoming out of each of these stats:
– The number of home sales bottomed in December 2008.
– Housing supply peaked in April 2010.
– Prices bottomed in March 2012.
In terms of the recovery, it is yet unclear as to whether or not any of these indicators have peaked again so there’s no telling if the boom will continue or begin to slow. As for 2012, home sales peaked in August but it is normal for them to slow down again during the fall and winter months. The number of peak sales in the summer of 2013 will give us a good idea as to whether the current booom will continue. Inventory is still falling and prices are most definitely on the rise.
This week we’ll send out our E-Newsletter reporting the monthly stats for November 2012. When comparing this November’s stats to the same period last year, here’s a sneak peak:
– Home sales are up 48%
– Average sales prices is up 10%
– Median sales price is up 10%
– Average time on market is down 15%
– Pending home sales are up 35%
– Supply is down 27%
– Mortgage rates are at an all time low, currently 3.35%
There are still plenty of home owners out there that would like to sell but are upside down, meaning they owe more than their home is worth. As prices continue to climb we should see a steady influx of new properties coming on the market. This injection of inventory to the market should keep things balanced over the next few years.
I recently read an article online that said the post recession, new normal is beginning to look, well, more normal. I agree with that wholeheartedly and look forward to a much more balanced 2013. Happy Holidays and a very Happy New Year. I’ll be back in 2013!