inventory Tag

4 Mar 2016

Ten hot reasons to list your house this spring.

Whether it’s time to downsize, upsize, go urban or suburban, a few of our Allen Tate Realtors® have offered ten hot reasons to list your home this spring: #10 - Pent up demand from the “off season months” brings more buyers to the market. #9 - You can sign up now for Allen Tate’s free Market Report to get in the know about the real estate market—list prices, sold prices, number of days on the market and more—in your specific area. #8 - Spring Break! Out of town buyers looking to make that summer move often visit during spring break. #7 - Many buyers are ready to shake off winter and ready to get out and start looking and buying. And, it may be easier to...
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16 Dec 2013

Are we in a buyer’s or seller’s market?

I’m often asked how the real estate market is doing.  Are we in a buyer’s market or a seller’s market?  So what exactly is a buyer’s market?  A Buyer’s Market is when we have more homes for sale than buyers.  In this market buyers can leverage the over-supply of homes to their advantage and get very favorable terms such as lower prices, receive closing costs and can take their time with selection.  Buyer’s markets are often identified with a depressed market or declining market and the obvious signs are very few offers in a buyer’s market - best offer is the only offer you received and it’s really low. So what exactly is seller’s market?  A Seller’s Market is when we have...
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9 Sep 2013

The Housing Scorecard

As we move into the last month of the 3rd quarter, it’s a good time to take inventory of where we are – and how far we’ve come thus far in the housing recovery in 2013. Where are we nationally with distressed properties? Here in the Carolinas, it feels like the inventories have dropped dramatically. From July 2012 to July 2013, distressed properties fell 32 percent nationally, according to CoreLogic. In July, 949,000 homes were in some stage of short sale or foreclosures, compared to 1.4 million just a year earlier. How about homeowners who are still “upside down”? Negative equity means that the homeowner owes more than what they can sell the home for. It is a real measurement of the health...
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27 Dec 2011

The Trend is Upward!

Earlier this month, there was more news that, for the fourth straight month, existing home sales were up nationally from the previous year’s levels. What is the reason? A lot of this uptick is due to the tax credit of the Spring of 2010 where sales were borrowed from the second half of 2010. This made this Falls’ results more realistic.

The latest report from the National Association of Realtors shows sales of existing homes up 13.5 percent to a seasonally adjusted annual rate of 4.97 million houses in October. I am also hearing from around the country that the upper end is starting to move, especially in the second- home markets. As I stated many times, real estate is a local game. This is good news if it is systemic growth.

Last October was the bottom. With four straight months of 2011 growth, this doesn’t mean that we are on another boom course, but rather a gentle recovery over time.

12 Sep 2011

Is the Luxury Market Making a Comeback?

There has been an interesting phenomenon in the new homes market over the last few months…the luxury market for new homes seems to be gaining some momentum! Now every market defines “luxury” differently. For Charlotte it would be homes in excess of $500,000.We have seen a steady rise in sales over the last few months from our luxury builders. Now, is this a trend or just a blip on the screen? We would prefer to believe there is a trend developing and when you start digging into the reasons, it makes sense. Even to the point that we may be settling into the “new normal.”

There had been very little building of luxury homes since the market was glutted with foreclosures and short sales.

Now that we are 3 years into our “non-recession” recession, a huge chunk of the inventory has been cleaned out and at bargain basement prices! When bargain hunters cleaned out the inventory they also set the pricing for the luxury home market. With dwindling inventories, sellers being able to sell their existing homes, and a modest pent up demand for new product, builders are starting to gain confidence and restock the shelves.

17 Jan 2011

When Are Homes Going to Appreciate?

Mortgage CalculatorWill homes appreciate again?

This is a trick question because many neighborhoods have never experienced depreciation.  How does that happen?  It is all about Supply and Demand as well as location, location, location. There are many, many neighborhoods that have been plugging along at 1-3% APPRECIATION PER YEAR. That’s right, appreciation, not depreciation.

For the majority, homes will begin to appreciate in value, but modestly … and from a new reset point (the way that they did over the past 40 years).

27 Oct 2010

What is Happening to Housing Prices?

Worried about the value of your home? As we have discussed in previous blogs, the best future indicator of your home’s value is the Housing Inventory level in your market. Historically, housing inventory has predicted future pricing in the following manner:

  • Appreciating Market = <5 months inventory
  • Stable Market = 5 to 6 months inventory
  • Depreciating Market = 7 to 9 months inventory
  • Double Digit Depreciating Market = 9+ months inventory

Year over year, the Charlotte Region’s inventory levels were up in all price ranges below $250k. Above $250k, inventories have come down significantly from last year and are even below 2008 inventory levels. (Please note the extremely tight inventory levels in September 2007 at the height of the market – inventories during this peak season ranged between 2.5 and 6.2 months. We can see that the inventory levels at the peak were solidly in an “appreciating market”.)

25 Oct 2010

What Does the Luxury Market Look Like?

In June I posted about the upper end market and its rebound.  Since then, we’ve seen the market continue it’s up and down course. So what does the upper end market in our region look like today?

First, inventory of $750,000 and plus homes in the Triangle, Triad, and Greater Charlotte markets has decreased significantly in the past 12 months. In fact, inventory is at its lowest level during the past 24 months.  New home inventory is not getting replaced so expect to see inventory numbers continue to decline.

Second, demand has increased 40% or more in these same markets since a year ago.  Why? There are great values in the market as median prices have dropped 10% or more.  There have been comments from Wall Street Journal, Karl Case, John Paulson and others that now is the smart time to buy real estate and the wealthy are heeding the advice and buying homes.

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