Real Estate Market: True Rebound or Brief Improvement…?

May/June 2010 Is this a true rebound or are we experiencing a brief improvement? Given the significant increase in activity in the Charlotte and Lake Norman regions, this is the question on everyone’s minds. Here are the stats comparing 2009 and 2010 through the end of April: Charlotte region closed sales as reported to the MLS are up 14.5%. Lake Norman region sales are up 32.4%. Certainly cause for celebration. Remember – we are comparing against what we perceive to be the bottom of the market in early 2009 and prices have just begun to stabilize. Activity has returned to 2002 levels. Pricing, while very specific to the neighborhood and the product is likely to be in that 2002 vicinity as well.  So, can we sustain the increased activity? I believe we can. Subject to consumer confidence, job creation and stabilizing prices, I believe we will see continued improvements. One interesting factor to consider – the inventory levels have not increased dramatically – thankfully so. Many homeowners find themselves with diminished equity due to the price declines of the recent past. With inadequate equity to move up, many are choosing to stay put. This helps to balance the market. One last comment on foreclosures, short sales and their impact on the market. 70% of foreclosures nationally are within 5 states. Fortunately, North Carolina is not one of those states. Foreclosures can certainly impact any micro market; they are not having an adverse impact on the overall market at Lake Norman or in the Charlotte region. Certain neighborhoods might be suffering but the overall market remains stable. As always, we welcome the chance to discuss your home and your neighborhood. Please call us or feel free to visit my website at www.LeeAnnMiller.com where you can search for recent sales in your neighborhood by using our map search.

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