The Housing Market is Changing

Every market is different but in the Charlotte market, the first time homebuying product has stabilized and changing!!

The following graph shows the median price of homes SOLD in the Charlotte MLS area for homes priced between $80,000 - $180,000.

For the past 3-years this market segment’s pricing has been fairly stable. At least the sold price of homes is not continuing to go down and not as volatile as other price points.

The median price in the first quarter of 2009 is $127,000 and in 2012 it is $126,000.

Don’t wait for prices to come down but will soon start to increase!!!! Tomorrow I will show you the supply and demand graph that clearly illustrates the dynamics in the marketplace.

Compare:

$136,000 Loan at 4.75% interest rate
Estimated Monthly Payment (PITI)                             $990

$116,000 Loan at 5.25% interest rate
Estimated Monthly payment (PITI)                             $940

As interest rates increase your buying power is reduced!

Interest rates are BELOW 4% NOW but what happens as home prices increase? You buy a house with less features, not the best of locations and you start to make buying concessions.

If you know a first time homebuying, please talk to them before the market does turn --- NOT in their favor!