Charlotte Home Prices Up, Volume Down in 2014
Hows The Market?
Charlotte area home prices soared 15% in the first two months of 2014 when compared to January and February, 2013 even as volume decreased 8.5% for the same period. We measure price gains and decreases based on the sold cost per square foot, a measure that balances out different consumer choices in house size. The average sold price increased 17% to $265,222 in our core Charlotte area.* Charlotte home prices have been increasing for more than 26 months, with no end in sight.
Real estate prices are determined by supply and demand, and the growth in our local economy is hot, fueling the broad growth in real estate prices… If you really want to understand our market, take a look at last years economic numbers… this rise in homes prices is not speculation, it is a rise in demand.
The Charlotte economy is rocking. According to Moodys Precis, Total Employment has passed pre-recession levels, from 858,500 jobs in 2008, compared to 869,900 in 2013 with a projected increase of 2.3% in 2014 to 890,800.
Gross Metro Product also has far surpassed 2008 level of $83.1B, to projected 2014 $94.5 B, a 3.3% increase over 2013- Recession or no , Charlotte is charging forward! Charlotte’s growth rate is 2 x’s the state and national average!
Personal Income grew 4.2% in 2013 and is expected to grow an additional 7.5% in 2014
Unemployment remains stubbornly high at about 8%, but much of that is manufacturing sector, it is estimated that our college educated unemployment is closer to 4%.
Moody’s concluded that “the Charlotte-Gastonia-Rock Hill recovery will outpace that of the U.S. next year...Well above-average population growth bodes well for expansion in health care, consumer industries, and housing. Charlotte will outperform the state and the U. S. through 2017.”
The Charlotte economy is quite strong.
Charlotte Real Estate
Statisticians love the big sweeping market numbers, but to us Brokers, and to home sellers and buyers, it is “Hows the market in my neighborhood” that counts. Charlotte has many real estate markets, here is a look at a few popular areas, year over year, Jan-Feb 2014 vs Jan-Feb, 2013, home prices measured on a Sales price per square foot:
Charlotte Condos Uptown zip code 28202- Wow. In the first 2 months of 2014, volume has increased 55% over the first 2 months 28210, sales volume was down 3.7%, home prices rose 10%, days on market fell 20%
Zip code 28209, includes Sedgefield, part of Madison Park, and the western edge of Myers Park (Selwyn area) Sale volume is down 12.5%, but home prices (Sales price per sf SP/sf) is up 11%, days on Market up 30%
Myers Park, parts of zip code 28207, 28211 and 28209 sales volume fell 25% but home prices rose 11.5% an days on market rose about 20%.
The Ballantyne area, zip code 28277, sales volume fell 37%! However, home prices rose 12.5% and days on market rose significant 41% to 82, still below the city average
Waxhaw, zip code 28173, sales volume fell 17%, as SP/sf rose 21% with no significant change in days on market. The average sales price prose 34% to $433,452. Waxhaw is BACK.
Huntersville, zip code 28173, volume and price/sf rose a modest 3.5% with days on market decreasing 14%
Don’t see your neighborhood? Give us a call, we are happy to run your numbers!
There is a host of other positive signs, our home builders are quite optimistic for the first time in 5 years, serious delinquencies on mortgages are down 31% from their peak, and, can’t mention it enough but our economy is strong here.
On the negative side we have the 1 Trillion dollars in student debt that is delaying many of our young people from buying homes (up from $250M just since 2004) and we can see that result as first home buyers in 2013 accounted for 30% of the market, versus their historical average of 40%. Also, at some point in the next 12-18 months the Federal Reserve will begin the process of “tapering” and this will cause a rise in interest rates.
So, How is the Market? Pretty darn strong!
I am personally betting on a strong year for prices and sales, though we won’t match 2013 volume. That is good new to me. Charlotte is known as an affordable place to live, a great place for young people and I hope we can stay that way.
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*We call the core area an unusually designed shape that includes lake Norman, close in Gaston county, extends south to Waxhaw and to Midland in the east. See it here of 2013, and prices increased 11.2%. Days on market fell 27% too! Young people are buying again.