CNNMoney published an article illustrating that home values have risen for the first time in 5 years, go here to read the entire article.
We are starting to see that same trend in the downtown Charlotte market as well.
There are fewer properties on the market than there have been in 10 years. Ten Years! It is no wonder when you consider how the value of property has eroded due to inflated prices and a diminishing market. The only people who were putting property on the market were those who needed to sell.
The big change in this market is that buyers, buoyed by stability in their personal situation coupled with low prices, and low interest rates, are coming back into the market. YTD 2012 downtown properties are selling for slightly more than 96% of the asking price while the same time period of 2011 showed that selling price to be slightly less than 95% of the asking price. 22% of the properties sold this year were at or above the asking price.
Realtors will tell you that there are often multiple offers coming in for listings. These activities will drive up prices.
Now for the "800 pound gorilla in the room", foreclosures! Actually that should be foreclosures and short sales. There is a good amount of these properties that are selling, and a bigger amount that await being put on the market. It is a clearing out process that has to happen.
The difference today is that there are buyers, both homeowners as well as investors, who look for these financially distressed properties to provide them with avenues for financial growth in an otherwise slow investment market.
So, stay tuned, or better yet call me, 704-236-7119, to take advantage of the recovery!