The 2013 Charlotte real estate market has shown nothing but strength through the first quarter of 2013. The market stats that we track are back at 2007 levels which was the peak for Charlotte before the recession started to take shape. I still hear people say that the market is not back to where it was in 2006 but I’m beginning to disagree with that position.
Two of the major differences this time around is the amount of money down that lenders are requiring and the interest rates that are almost half of what they were at peak. Back in 2006, I remember feeling a sense that some people were stretching to make their home purchase. This time around the decision making seems to be far more sound. For starters, lenders are requiring more money down and have much higher lending standards which keeps those that really can’t afford that big expensive house out of the market. But additionally, with interest rates below 4%, the prices that seemed high back in 2006 are much more affordable now from a monthly payment standpoint.
This week we are sending out our monthly E-Newsletter where we report the Mecklenburg County market stats and the data shows no signs of any slowdown yet. Here’s a sneak peak when comparing March of this year to the same month last year:
– Home sales are up 33%
– Average sales price is up 12%
– Median sales price is up 6%
– Average time on market is down 12%
– Pending home sales are up 25%
– Supply is down 31%
– Mortgage rates are still at record lows around 3.57%
I am most excited about the pending home sales number which indicates what home sales will look like in the next 30-60 days. That number is still way up which means that the market is still going strong without any signs of slowdown. The last time that pending sales were at the levels they are at today was back in April of 2007 which truly was the peak of the Charlotte market. In my studies of the market, I have seen that home sales and prices tend to peak during the summer months of any given calendar year. So while prices are already up from last year, we can expect to see continued appreciation over the next three to six months.