Housing and Economic Update for the Charlotte, NC Metro Market

As a listing broker, I thought it would be helpful to provide an update on the local housing trends and economics. Here is an update for May/June 2010 to assist with evaluating our inventory for the Charlotte Metro Area:

Articles/Press Releases:

New Home Sales Plunge 33% Nationally in May

The sales of new homes fell in May to their lowest level ever, decreasing 33 percent from the previous month.  Additionally, a report provided earlier in the week stated that the sales of existing homes dropped as well.  Because of this situation, the Federal Reserve has repeated their pledge to hold interest rates at record lows to help stimulate economic growth.  Besides the issues with homebuyer tax credits, high unemployment and slow job growth also add to the housing market’s condition.  On Wednesday, June 23rd, the Commerce Department stated that new-home sales for May came in at a seasonally adjusted annual sales pace of 300,000, which was the slowest in the 47 years recorded.  Also, this was the largest monthly drop on record and sales have decreased 78 percent from their peak five years ago.

Publication Date: Thursday, June 24, 2010
Publication Title: Charlotte Observer
Author: Alan Zibel
Article Link: http://www.charlotteobserver.com/2010/06/24/1520672/new-home-sales-plunge-33-nationally.html
Please feel free to click on the link above to read the complete article!

Mecklenburg County Home Losses Surge

The foreclosure situation in Mecklenburg has doubled so far this year.  By June, Mecklenburg citizens had lost 2,185 homes to foreclosure and this increase can be accredited to the high unemployment rates and extensive federal efforts to stem foreclosures by modifying home loans. These foreclosures do not just affect the home owners, but the homes lost also drag down nearby property values, which makes it hard for neighbors to sell their homes as well. In order to help stop this vicious cycle, North Carolina created new laws including one that allows county courts to extend foreclosure sale dates to give homeowners more time to work with their lenders.  Additionally, in February of last year, President Obama made a foreclosure prevention effort with Home Affordable Modification Program.  Lastly, there are nationwide efforts to provide bridge loans and other stopgap measures for the unemployed.

Publication Date: Sunday, July 4, 2010
Publication Title: Charlotte Observer
Author: Stella M. Hopkins
Article Link: http://www.charlotteobserver.com/2010/07/04/1542926/mecklenburg-home-losses-surge.html
Please feel free to click on the link above to read the complete article!

Delinquencies Inch Up in May, Foreclosure Inventories Remain Flat: LPS

Lender Processing Services has reported that the seasonal improvement period for delinquencies and foreclosure inventories has come to a halt.  According to the article, the total U.S. delinquency rate jumped to 9.2 percent in May, which is 7.9 percent higher than May of 2009.  The foreclosure inventory rate has remained stable from the month prior at 3.18 percent, but it was 13.5 percent higher than May of 2010.  Also, the national noncurrent loan rate came in at 12.38 percent and if including REO properties, the number of noncurrent loans in May increases to almost 7.4 million.

Publication Date: Friday, July 2, 2010
Publication Title: DSNews.com
Author: Brittany Dunn
Article Link: http://showcaserealtyblog.com/delinquencies-inch-up-in-may-foreclosure-inventories-remain-flat-lps/
Please feel free to click on the link above to read the complete article!

Charlotte Area Statistics for May 2010:

Average List Price of Sold Properties $238,736
Average Sales Price $212,454
Average Days on Market 116
Average Residential Closing Price $212,454
Total Number of New Listings 4,744
Total Residential Closings Reported 2,537
Total CMLS Listings on Market 26,008
Mortgage Rates 4.79 %
Charlotte/Gastonia/Rock Hill Unemployment Rate 10.9 %
National Unemployment Rate 9.5 %
Sold price vs. List Price 88.99%

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