Charlotte NC Real Estate Market Report--First Quarter 2010
Charlotte NC Real Estate Market Report—First Quarter 2010
All real estate is local. What’s happening to the market in your neighborhood and its immediate surroundings is the best indicator of your property’s value. Sometimes, however, it’s helpful to step back and get an overview of the regional market because regional trends can predict the future for your real estate investment.
The National Association of Realtors (NAR) publishes market reports for major metropolitan areas every quarter. This post summarizes some of the NAR findings for the Charlotte-Gastonia-Concord area. You can read the entire report by clicking here.
Pricing in Today’s Market
The median home price in Charlotte NC is $171,400. The US median price is $166,733. The table below shows what has happened to prices and home equity in the Charlotte and US markets since 2001.
| Price Activity | Charlotte | U.S. |
| 1-year appreciation (4 quarters ending 2010 Q1) | -0.1% | -0.5% |
| 3-year appreciation (12 quarters ending 2010 Q1 | -7.7% | -22.1% |
| 3-year (12 quarters) home equity gain | -$14,200 | -$47,333 |
| 7-year (28 quarters) home equity gain | $25,400 | -$467
|
| 9-year (36 quarters) home equity gain | $30,400 | $22,733
|
Source: National Association of Realtors
What it means to you.
- Prices are still down from a year ago but the rate of decline is improving.
- If you purchased early in the real estate boom, you are more likely to have some equity in your property.
- The Charlotte market is in better shape than the U.S. market as a whole.
New Construction
5,120 building permits were issued for one-unit building in the Charlotte market during the twelve months between March 2009 and March 2010. The long-term average for twelve months of building permit activity is 14,899 permits. This indicates that the current level of new construction is 65.6% below the long term average. Single-family building permits were off 11.4% year-over-year ending in March 2010.
What it means to you.
- The supply of new homes to the market is limited compared to Charlotte’s historical averages.
- If you are in the market for a new home, your choices may be limited compared to the recent past.
- There may be more of a market for your resale home than in the past when there were many choices in new construction.
Affordability
Two tables below show statistics for the ratio of monthly mortgage payment to income and median home price to income in Charlotte and the U.S.
| Monthly Mortgage Payment to Income | Charlotte | U.S. |
| Ratio for 2009 | 11.6% | 15.3% |
| Ratio for 2010 Q1 | 10.4% | 14.4% |
| Historical Average | 14.1% | 22.6% |
Source: National Association of Realtors
| Median Home Price to Income | Charlotte | U.S. |
| Ratio for 2009 | 1.8 | 2.4 |
| Ratio for 2010 Q1 | 1.6 | 2.2 |
| Historical Average | 1.8 | 2.7 |
Source: National Association of Realtors
What it means to you.
- Both indicators of housing affordability are strong historically and better than the U.S. averages.
- Housing affordability improved in the first quarter of 2010.
- Charlotte remains an attractive relocation market because of its affordable housing compared to many other parts of the country.
Foreclosures
The table below shows the foreclosure rate for prime mortgages in Charlotte and the U.S. plus rates for prime mortgages that are 90-days delinquent but not yet in foreclosure.
| Monthly Market Data – February 2010 | Charlotte | U.S. |
| Prime Foreclosure Rate | | |
| August 2009 | 1.4% | 2.3% |
| February 2010 | 1.9% | 2.7% |
| Prime 90-Day Delinquent | | |
| August 2009 | 4.6% | 5.2% |
| February 2010 | 6.3% | 6.5% |
Source: National Association of Realtors
What it means to you.
- The foreclosure rate is low in Charlotte compared to the country as a whole but the rate is rising.
- The rate of delinquent mortgages has climbed faster than the national average suggesting a bulge of foreclosures in the future.
- Increasing foreclosures are likely to exert a downward pressure on prices.
Want to know more about real estate and living in Charlotte NC and its small towns? Visit www.CarolinaSmallTownLiving.com.
Copyright 2010. Carol Fox. Allen Tate Realtors. *Charlotte NC Real Estate Market Report—First Quarter 2010*