Charlotte's January Home Prices-No change from 2007, up over 8% since 2006, Even as Sales Slow

Charlotte Real Estate Market Report-Residential Single Family Homes

January ‘08 Homes Prices, based on the Sold Average Cost Per Square Foot remained at $109/ sf, identical to the record setting January ‘07 prices, keeping todays home prices 8.18% above January, ‘06

11.3% above January, ‘05. Even as Charlotte weathers the dramatic slowdown in home sales, with 27% fewer single family homes sold, valuations remain rock solid.

The three month trend line, a more accurate reflection because of the larger number of sales, is virtually identical to the January numbers. For the 3 months ending 1/31/08, the average sold cost per/sf was $109.92, versus $109.73 for the same period ending 1/31/07. And sales were off 24% for the same period.

So why am I celebrating no appreciation you ask… a good question. The short answer is because around the country home prices are falling- double digit drops in some cities. According to Radar Logic, the wall street firm used by the Wall Street Journal and Bloomberg TV, 20 of 25 national MSA home prices fell in November.

Boston home prices- off 5%

Chicago home prices- off 3.8%

Atlanta home prices- off 7.1%

Miami home prices- off 10%

Lois Angeles prices- off 10%

San Diego prices- off 17%

Sacramento Prices- off 18%

WOW. Now do you see why I am happy that Charlotte home prices have remained steady? And remember, our unit sales did slow dramatically, 24% in the last 90days, just like these depreciating markets.

So why is that? Why has Charlotte performed so well? is it likely to continue as well? To be entirely accurate, it would be a long answer, but the main reasons are clear: Charlotte creates jobs way faster than the national average- this past year over 21,000 new jobs a 2.6% increase, nationally the number was 1.1% and the 2nd is that these are well paying jobs, adding to the areas income and demand for housing. Charlotte remains the “Only Objectively Affordable “ major city in America, according to Radar Logic’s square foot analysis.

I was asked today, will it continue? There is no sign our local economy is slowing…with the caveat that no one can predict the future including me, I do believe it will continue, as the economy continues to expand here. .

However, it’s not all roses in Charlotte. The new home industry is contracting swiftly trying to get to manageable inventory levels, and will build many fewer new homes in 2008 than 2007. What started as the sub-prime fiasco has now turned into a low grade credit crisis nationally, and it will be harder to buy a home in 2008, affecting ours sales as well. While I report on averages here, there are some areas of Charlotte where prices have fallen, some are significant, while some prices continue to rise. Choose your areas wisely.

See the Rest of the story, Charlotte January Real Estate Market Report here.

Other Related Posts: Despite Slower Sales, Charlotte Home Prices Up in 2007

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