Tuesday, October 7, 2008

Charlotte NC Housing Market Report

Each month Rich Ferretti participates in a survey of the market. That information is then aggregated and broken down by some of the top markets nationwide. Click the link to see the entire report and view other markets.

Charlotte, NC – Buyers Lack Urgency, Despite Good Deals Available (15,185 single-family permits in 2007, 7th largest market in the country)

Buyers remain uneasy due to weak economy, job uncertainty. Buyer traffic remained very weak in August, as our traffic index slipped to 11 from 13 in July, indicating traffic well below agents’ expectations (readings below 50 point to traffic below expectations). Agents saw few encouraging signs this month, as buyers remained wary due to increasing uncertainty surrounding the economy and potential for further layoffs from some of the area’s large employers. According to one agent, “Sellers are very motivated to sell, but buyers are postponing buying decisions.” Many agents said buyers are likely waiting for signs of price stabilization, especially since financing conditions remain difficult.

Prices continue to fall, led by banks and builders. Home prices fell further in August, as our price index came in at 19 (from 17 in July), with readings below 50 suggesting lower home prices over the past 30 days. Agents said banks and homebuilders continue to lead prices lower, as banks slash prices on REO prices to work through the growing foreclosure inventory and builders continue to offer generous discounts and incentives on standing inventory. Still, inventory continued to increase, as our home listings index was unchanged at 27 in August from 26 in July, with any reading below 50 indicating a deteriorating trend. Our time to sell index also showed deterioration, as our index measured 13 in August (from 11 in July). Higher inventory and the longer time to sell suggest further price declines are likely in the coming months.

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Charlotte North Carolina Real Estate Professional. Visit our site www.RichFerretti.com