The economic malaise is effecting the housing market in reverse. Fear of the future and the need to stay in place have taken over the mindset of homeowners. We used to find jobs in other cities and we would move. A 2.8 monthly inventory of homes on the market signals a sellers market!! Compare the above to the inventory in September 2011. In 9 months, the Charlotte market has changed significantly.
The following chart provides the results of the changing market. Remember, it is not because the Charlotte economy is going through the roof but more about homeowners not wanting to or can't make a change.
In one year, the average price of a home in Charlotte has increased 13.5%. If the supply remains low, prices will continue to escalate. We are seeing multiple contract offers and quick sales. Check your local market and let me know the difference in pricing over the past 12-months. The problem with the appreciation in home prices --- it is not because of the overall economy or consumer confidence but the lack of confidence and the fear of the future.
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