There’s two sides to every story, including real estate. Home prices rose slightly in March and April, indicating that increasingly affordable prices are enticing hesitant buyers. The flip side is that prices are still down from last year, giving fits to most anyone who bought during the residential real estate bubble.
Prices of existing homes in the Charlotte area climbed 0.3 percent in March from February, according to Standard & Poor’s Case-Shiller Home Price Index. It was the first increase since June a year ago. Only Denver among other U.S. cities saw another month to month increase. March’s greatest rate of month-to-month price decline was in Minneapolis, down 6.1 percent from February, S&P said.
The 20-city average year-to-year decline was 19.1 percent. Charlotte’s year-to-year decline, only 9.3 percent. In year-to-year comparisons, only Denver, Dallas, Boston, Cleveland and Charlotte saw price declines of less than 10 percent.
Indeed, we’re in much better shape than many cities around the country. Year to year price declines were in excess of 30 percent in Phoenix (down 36 percent year to year), Las Vegas (down 31.2 percent) and San Francisco (down 30.1 percent).
The National Association of Realtors says existing home sales increased between March and April, which saw a 2.9 percent increase in sales of single-family homes from the prior month. On a national level—and in Charlotte—the real estate community is seeing the most activity in lower price ranges.
Lawrence Yun, chief economist for the National Association of Realtors, said first-time buyers continued to influence the market in April, but there was a rise in repeat buyers as well.
“Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the mid-price ranges, but high-end home sales remain sluggish,” Yun said. Foreclosed properties and short sales will probably continue to affect the market during the remainder of the year, Yun said. These properties should continue to attract bargain-hunters.
It’s a start, at least.
Realtors all across the Golden Crescent are saying there are increasingly signs of life in the lower price ranges, although, here and there, a high-price home is selling.
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| HONEYCUTT |
“Information is confirming what we have seen in our market in the last 30 days and that is consumer confidence is definitely improving, which is necessary to turn things around,” said Diane Honeycutt of Allen Tate’s Concord office.
“May showed the biggest jump in six years sending a positive signal that maybe things will continue to improve. Although the Charlotte Region has seen some decline in prices, the S&P/Case Shiller report shows that the Charlotte areas is among the strongest of the 20 areas monitored,” Honeycutt said, pointing out that would-be buyers who offer 20 percent and 30 percent less are going to be disappointed. “We just haven't experienced that kind of decline in our market,” she added.
There were no closings over $500,000 in Cabarrus County during the past month. There were four closings between $400,000 and $500,000, so activity finally is happening.
Is your house too big?
The average American home size, about 2,500 square feet, is 140 percent larger than it was in the 1950s.
Housing has become a competitive sport where bigger is better. If the kids are gone, and resources are scarce, does that 6,000 square foot house look as good as before? Maybe not right now, but when the economy is back on solid footing we think it will.
Sales
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| DEAN |
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| 18610 Square Sail Road |
A custom home in The Peninsula has sold for $527,000, having been listed at $540,000 by Dixie Dean from Allen Tate’s Cornelius office. The house, at 18610 Square Sail Road, has an office and the master bedroom on the first floor. The house has a fireplace, built-ins and a SubZero refrigerator. Robin Puckett of Keller Williams in Cornelius represented the buyers.
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| 17617 Spinnakers Reach |
A waterfront home at 17617 Spinnakers Reach in The Peninsula has sold for $1.175 million. The house, which features an outdoor kitchen and a private dock, was listed at $1.299 million by Joyce Fox in Allen Tate’s Cornelius office. Built in 2000 with four bedrooms and 3.5 baths, the house sold in less than three months. Mike Kessler with Knox Realty was the buyer's agent.
Real Estate People
Mandy Renegar has joined the Denver office of Lake Norman Realty. She has completed the company’s in-house professional post-licensing.
Kenny Hall and Jennifer Fournier have joined Weichert Realtors—Craven & Co. in Concord. Both are members of the Central Carolina Association of REALTORS®. |
