A New Year in the Charlotte Real Estate Market

By Matthew Paul Brown – ResideCharlotte.com

The New Year has begun with a shock wave for real estate buyers and sellers. What a great year for Charlotte real estate in 2015! Our firm experienced over 200 million dollars in sales over the course of last year. Locally, the Charlotte market remains strong, however, sales slowed over the holiday season.

Over the last 60 days, Myers Park, Eastover, and Dilworth areas experienced 28 sales over $500,000.00 in comparison to 36 sales in 2014. There could be multiple reasons for the decrease in sales in these areas. I believe the largest factor is the lack of inventory on the market. For example in all three areas, there are only 63 homes on the active market over $500,000 at the present time. Another factor may have been the new closing rules that went into effect October 3, 2015. According to Lawrence Yun, NAR Chief Economist, this may have played a role in the decrease as well. Our team in 2016 is off to a great start as far as listing inventory.

Featured in this article are a few examples of some extraordinary homes represented by Ivester Jackson | Christie’s International Real Estate. If you are considering selling your home, I would suggest getting an early start on the spring market of homes surely to come available increasing choices for buyers.

Extraordinary equestrian estate situated on 18 acres located in sought after Indian Land. Horse lovers come and preview the two superb barns. One barn features 12 stalls and the other storage barn with finished apt. A true horse paradise with 7 pastures, outside course, and arena. Custom built and designed by architect, Meyer Greeson with high end finishes such as vaulted 2 story ceiling in great room with stone fireplace. Truly feels like driving up to a European equestrian estate! Opportunity!
845 Jim Wilson Road – Extraordinary Equestrian Estate

Pending Home Sales

Pending homes sales in November 2015 slightly declined 0.9% for the third time in four months as buyers continue to battle both rising home prices and limited homes available as mentioned earlier. The Pending Home Sales Index (PHS), a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. We are quoting November because a home goes under contract a month or two before it closes. We fully expect for pending sales to increase over the first quarter. That is good news for sellers!

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International Investors

According to the National Association of REALTORS, foreign investors are continuing to purchase more U.S. properties. This is partly due to a tax bill that Congress passed last month. This tax bill would ease tax requirements of foreign owners when they went to sell the property. In the 1970’s many people in the United States became very concerned with the number of International buyers acquiring U.S. real estate holdings. With that, the tax code Subtitle C – Taxation of Foreign Investment in the United States Real Property was introduced. “Section 1122” Tax on deposition of Foreign Investment in U.S. Real Property.

After the 2008 Great Recession, the real estate industry asked Congress to start backing off of some of the restrictions because we needed more funding and Congress finally did it with the passing of the bill. NAR expects a significant increase in Commercial Real Estate to around 30 billion dollars. One of the main reasons for International interest is the strength and stability of the U.S. real estate markets. Now is a great time for the residential side to experience more exposure to International buyers through the leverage of Christie’s International Real Estate.

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What my team is doing to stay on top of the real estate market in 2016

Being REALTORS, we constantly stay on top of market conditions across the globe. For now, the U.S. economy is stable as well as the real estate market. Persistent waves of fear that China’s growth slowdown has much more room to run, that rising geopolitical uncertainties in the Middle East will boil over, and that the U.S. profit margin story is over have pushed markets much lower. With China being one of the largest foreign holders of U.S. debt, the greater the financial stress in China, the greater risks to the U.S. in the way of diminished capital inflows from across the Pacific.

At the close of October, China held some $1.25 trillion in U.S. Treasuries. Although, America’s exposure has grown over the past decade our exposure remains minor. All in all, corporate America’s investment exposure in China is relatively shallow and would have a muted impact on U.S. foreign income and sales. However, we like to keep a pulse on the global market as it does impact our economy and the U.S. real estate market. Right now, I believe that the risk of another recession is low.

*Staying on top of new listings and the local real estate market

* Keeping our eye on mortgage rates and the overall economy

* Delivering unprecedented client service by listening and effective communication

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Employment Statistics for Charlotte

The labor market continues to improve in Charlotte, North Carolina. The unemployment statistics have decreased slightly year over year according to the U.S. Bureau of Labor Statistics. Overall, in the United States in 2014 it was 5.5%. In 2015, we dropped to 4.8%.

For Charlotte in 2014 the unemployment rate was 5.5% and in 2015 decreased to 5.3%. Being a thriving city and second largest financial center in the United States outside of Manhattan, we are continuing to attract more Fortune 500 companies choosing to relocate to Charlotte which in turns brings more jobs.

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2016 A Year of Constant Change

In 2015, one main source and cause for a shift in the economy was the strong dollar and low oil prices. This continues to be the case in beginning of 2016. With low oil prices the cost of fuel continues to decrease making consumers continue to splurge on major purchases such as automobiles. 2015 was a record breaking year in automobile sales, people are also buying more houses and furnishing them, and making more home improvements.

Continued low oil prices, and a strong dollar, translate into low inflation. Factoring in strong job growth in Charlotte, low unemployment, and positive consumer confidence, these are all ingredients for a continued strong real estate market in Charlotte, North Carolina.

Sources: Department of Labor Statistics, U.S. Trust, CMLS

This market update is only provided for informational purposes only and is the opinion of Matthew Paul Brown.




Home Sales On The Rise In Charlotte

CHARLOTTE, N.C. – Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on Carolina Multiple Listing Services, Inc. (CarolinaMLS) data.

Sales Prices Up

Both the median and average sales prices were up in December, marking four consecutive years of price gains for our region. The median sales price ($190,000) was up 2.8 percent over December 2014 ($184,900), and the average sales price ($241,094) was up 3.4 percent over December 2014 ($233,242).

Great attention to detail has gone into this traditional Myers Park home from exquisite hardwoods, marble, granite, butlers pantry and open floor plan. Bespoke millwork throughout this quality constructed home even graces the closets! The property has been painstakingly maintained and shows like a model. The third floor is a great area for second master suite or private guest suite with its own media area. Minutes to Uptown Charlotte, shopping, and International airport. A true opportunity!
3029 Hanson Drive – Traditional Myers Park Home

The average sales price across the region for the entire year of 2015 was $242,168, an increase of 4.5 percent over 2014’s average sales price.  The median sales price for all of 2015 was $192,500, an increase of 6.3 percent for the region compared to all of 2014.

List Price Up

The average list price in December 2015 ($254,018) increased 7.0 percent over December 2014 ($237,436), bringing the percent of original list price received measure for December 2015 to 95.0 percent, an increase of 1.3 percent when compared to the same period in 2014. For all 2015 the original list price received measure was 95.0 percent, compared with 94.1 percent for all of 2014. Preliminary pending sales counts for the month of December totaled 2,540, an increase of 14.1 percent over the previous period when contracts totaled 2,226. Pending contracts for all of 2015 totaled 41,875, up 15.1 percent compared to all of 2014 (36,396).

Extraordinary equestrian estate situated on 18 acres located in sought after Indian Land. Horse lovers come and preview the two superb barns. One barn features 12 stalls and the other storage barn with finished apt. A true horse paradise with 7 pastures, outside course, and arena. Custom built and designed by architect, Meyer Greeson with high end finishes such as vaulted 2 story ceiling in great room with stone fireplace. Truly feels like driving up to a European equestrian estate! Opportunity!
845 Jim Wilson Rd – Extraordinary Equestrian Estate

Solid Buyer Demand

2016 Association/CarolinaMLS President Maren Brisson-Kuester said, “At the beginning of 2015 I noted that inventory was going to be a challenge in 2015, and looking ahead, inventory will probably still be challenging in 2016. However, even with our low inventory, sales were still up nearly 12 percent in 2015 over all of 2014.  We’re continuing to see solid buyer demand in our region because of our growing job market and strong local economy, and I’m reassured that the region will continue to see steady sales as we move ahead into 2016.”

December Listings

New residential listings in the month of December totaled 2,396, an 11.7 percent decrease over December 2014 (2715).  New listings for all of 2015 totaled 53,412, a slight increase of 1.1 percent over 2014 new listings (52,841).  Inventory declined 24.2 percent compared to December 2014, leaving the CarolinaMLS region with a 3.0 months  supply of homes for sale. In December 2014 the region had 4.5 months supply.

December Sales

Sales in December were down slightly 2.6 percent over last year, with 3,007 properties sold last month compared with 3,088 properties sold in December 2014.  Closed sales for all of 2015 totaled 40,463, an increase of 11.7 percent over the number of closings in all of 2014 (36,227).

Fully custom estate home with every imaginable upgrade. Features include: 6 fireplaces, wine room, Subzero refrigerators and freezer, Lacanche Cluny gas range, hammered copper sinks, 12-30ft cathedral ceilings, theater room, 3 laundry rooms (master bathroom, mudroom, upstairs), circular observatory, fitness room, saltwater pool with waterfall/spouts & hot tub, cabana with full bath, kitchenette and ample storage, covered outdoor kitchen & fireplace, paver stone circular drive with porte cochere.
1921 Iverson Lane – Under Contract

Days on Market

The average number of days a property was on the market from the time it was listed until it closed (list to close) was 119 days, which is a decrease of 9 days compared to December 2014.  Days on market, the metric that accrues for “Active” and “Under Contract-Show” statuses only, totaled 64 days in December 2015 compared to 76 days in December 2014.

Foreclosures down

Foreclosures and short sales have returned to pre-recession levels, with the share of closed sales that were lender-mediated down 27.1 percent and accounting for 4.3 percent of closed sales for all of 2015.