Charlotte Home Prices fall 4%, Units sold off 26% in May 2008 on single family homes.

Demand, or units sold, was off 26% and prices fell 4% when comparing the Sold Cost per square foot prices of MLS sales in May 2008 versus May 2007, proving that after 6 months of double digit declines in demand Charlotte is not immune to the law of supply and demand as sellers are meeting buyer expectations and lowering their prices.

The average cost per square foot for homes sold in north Charlotte in May 2008 was 113/sf, versus $154/sf in South Charlotte. The price decline appears to be spread relatively evenly geographically, as northern Charlotte home prices (includes the Lake Norman area) fell 5.4% and South Charlotte home prices fell 6%. However, Charlotte home prices still remain well above 2006 levels.

More than 2,900 properties sold last month in total, so there is a solid market responding to weakening demand.

I take all of my numbers from the Carolina MLS (they don't provide the summary- just data) where Case-Shiller uses a different, and more precise method and they still report Charlotte housing market as rising in price through March (less than 1%)

What does this mean to home Buyers and Sellers? It means if you are a Seller, this is not a "move up" year... Only put your home on the market because you have to: a job transfer or job loss, leaving the area, death in the family etc. Otherwise you would be better off to wait; I expect a substantial price uptick in 2009. For Buyers- know this- we never had the large run up of prices that many markets did, so there isn't the massive paper equity other markets had, so there will not be any large price drops here- we have already proven this as home prices began dropping in earnest across the country in 2006.. and then you have to check out today's interest rates. If you wait until the market has turned the corner, you'll be facing stiffer mortgage rates- Rising rates go hand in hand with a growing economy. Buy now, but buy at a discount to protect yourself, and lock in that low rate.

I 'll be comparing various communities and neighborhoods to see how they fared in May in coming posts.

-----------------

Moving to Charlotte? Considering a Move? Call me, Terry, about these or any other homes in the greater Charlotte area at 704-351-1519 or Search All Charlotte Homes- By Area , for that perfect home in Charlotte.

Related Posts

Charlotte Real Estate Insurance and Taxes

Home Prices Rise in South Charlotte in First Quarter of 2008

Myers Park Homes for Sale- Over $1M