More Signs Of A Rebound In Housing

Actually, not so much signs of an Upturn as signs that we have passed bottom.  This link in a real estate publication cites several cities that have seen an increase in property values, and many more that have seen a lessening of property value declines.

Several things contribute to this, all related to supply and demand.  I have chronicled here that sellers are either shelving plans to sell, or turning to the rental market to put people in their properties.  Charlotte will have its best year for downtown property changing hands this year through either sale or rental.

Interest rates are incredibly low, have been for a while, and show no serious signs of creeping up.  Lenders are being penalized for their past actions of loose credit, and chastised in today's market for being too tight!

I have seen many instances where multiple offers are being submitted on available properties.  This usually is the start of a bidding, war at least on those properties. 

Conventional wisdom states that the most important thing in real estate is Locatoin, Location, Location.  A friend of mine in the industry has a different perspective, and that is Motivation, Motivation, Motivation!

I believe in the latter.

The Disappearing Seller

A publication called the Real Estate Economy Watch has just posted this article which refers to the disappearance of property for sale.  It sights reports indicating that nationally there has been a 20% reduction of available homes compared to the same time last year.

These statistics reflect a growing trend that is also evident in Charlotte.  I have reported in this blog that the number of individual condos that will be rented this year will exceed 400 in the downtown market.  Compare that to a little over 200 projected sales for this calendar year.  That is an incredible swing. 

When you include the fact that in MLS there is a small number (12) of properties in the downtown market that are categorized as financially distressed, and that over 70 are either sold or under contract, you are seeing a market that is retracting.

Many reasons exist for this, mostly the economy.  Sellers are increasingly reluctant to sell their property at prices below what they either paid or are willing to accept.  Many are staying in their property, delaying a move, or renting their property, sometimes even at a loss, as opposed to taking a big financial hit.

Some additional properties are in the process of navigating through the financially distressed stages, be it the foreclosure process or loan modification.

Whatever the cause, it is bringing back the laws of supply and demand.  You can see by the increased numbers of people coming into the downtown area through either ownership or renting that the demand exists.  What you are seeing is that the supply is dwindling!

My belief is that the bottom of the market has been reached, and the laws of supply and demand will begin to raise prices. 

For those interested in getting a value, the faucet may be turned off.

Movement at 7venth Market

It is good to see activity taking place inside the site of 7venth Market.  I have talked with several vendors who are excited to become part of this market, and have spent some time with Christy Shi, the General Manager of the market.  She is energetic and will be a great person to nurture this new venture into a successful venture.

Gone are the wine racks, and the food shelves that are standard in most grocery stores.  Workers are rearranging the remaining usable fixtures into what will be the new configuration. 

The Market is scheculed to be active by the end of November since all the regulatory requirements have finally been met.  I am looking forward to becoming a regular customer once the doors open!