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.