Matthew Paul Brown – Reside Charlotte
Market OutlookAs 2016 began, fears of the Great Recession still loomed as further dollar appreciation and oil prices below $20.00 a barrel were causing a spike in recession fears and consumer spending behavior directly reflected the mood in the early spring real estate market. So far, this year has continued to move in a positive direction in the Charlotte region. We are seeing housing inventory slowing rise in areas like Myers Park, Eastover, Dilworth and Uptown Charlotte.
Last June, there were 54 homes on the market in Myers Park as opposed to 50 at the present time. Pending sales in Myers Park have increased from 24 homes over $500,000 last year to 28 this year at the same time frame. The activity in Dilworth continues to be healthy, however, closed sales have cooled off from a high of over 31 closings over $500,000 compared to 19 closed sales today.
Eastover has picked up pace this year in closed sales. Sales have increased dramatically demonstrating a push from Myers Park. The Uptown Charlotte area has also seen an increase in residential and commercial activity. It seems there are announcements each day of new projects in the Queens City. There are over 59 units on the market and 33 pending over $250,000.00 in the Uptown area at the present time.
In the last 60 days, there have been 31 closed sales of residential properties in Uptown over $250,000.00. I remain optimistic about the Charlotte real estate market and feel confident real estate remains to be a stable investment. In fact, a wide variety of consumer indicators show that household income, wealth and job prospects are the best in over three decades.
Housing MarketThe Housing market continues to recover from the past several years. Housing permits, a leading indicator, rose slightly in May to 1.138 million units seasonally adjusted annual rate. Single family homes are currently running slightly below an 800,000 unit annual pace, more than double the average levels at the bottom of the housing recession, but well below 1.8 million unit annual pace reached in 2006. Thus, we are most likely to continue and see existing home prices rise.
Many believe that residential investment is poised to grow near double-digit pace for the next few years. I would welcome the opportunity to set up a private consultation to review a strategic real estate plan for you.
As a healthy eater, I am thrilled to see this latest news. Also, this continues to create more job opportunities for our community. Unemployment insurance claims rose 13,000 for the week ending June 11 to 277,000. This level suggests that job growth will pick up over the next few months. One thing is certain and that we reside in an extraordinary city where corporate relocations continue to happen on a daily basis.