National Market versus Local Markets

If you think lists are useful in understanding the benefits of a specific market, then Forbes publishes all types of lists. Recently, on June 8th, they published the “Best Cities to Buy a Home” and on June 23rd, published the “Most Affordable Cities to Buy a Home”. The top ten markets according to Forbes:

Best Cities to Buy a Home                                   Most Affordable Cities to Buy a Home

1. Houston                                                          Pittsburgh

2. Austin                                                             Indianapolis

3. St. Louis                                                        Chattanooga

4. Philadelphia                                                    Louisville

5. San Antonio                                                   Oklahoma City

6. Dallas                                                             Syracuse

7. Charlotte                                                        Rochester

8. San Francisco                                                Columbia, SC

9. Jacksonville                                                    Dayton

10. Atlanta                                                         Cincinnati

Since I live in Huntersville, NC, only 15 miles from “Uptown” Charlotte which is downtown, I would agree Charlotte should be on the list of the best cities to buy a home.

Families are stilling buying homes, builders are still building – a new 6-unit townhouse cluster is under construction by Lennar Homes. And, adjacent to this project, there is a single family subdivision under construction. Yes, roads are being constructed, entry features being finished and model homes being opened! It is great to see the activity but it does make you wonder – why? What do these builders see on the horizon that I don’t? The townhouses will probably be priced so no one should refuse to buy! The single family homes have a marketed price point in the $400’s. (They started their campaign in the $700’s.) It has always been my housing philosophy that construction activity energizes the market. People want to see “sticks and bricks”. Buyers want to see the real thing. Are we seeing several builders proactively taking charge of their own destiny and charging forward when everyone else is on the sidelines waiting for the next shoe to drop?

Also, it is reported in the Business Journal that Michael Jordan is buying an entire condo floor and renovating the 7,000 sq. ft. area with a private elevator – in “Uptown” Charlotte! As the new owner of NBA’s Charlotte Bobcats, it seems his investment in the city will also include a place to live. Good move!

This is positive news. At least……..for the moment.