After the Boom, Charlotte’s Real Estate Market - The Ramsey Group

For months I have been telling our selling clients that it will take a year or two before we see an increase in housing values in the Charlotte Real Estate Market.  Why?  This will happen because we have too much inventory of homes for sale and we have a slew of distressed properties.

What will cause the housing prices to increase?

Prices are dictated by the simple rule of supply and demand. 

High Supply:

The current real estate market is flooded with properties that haven’t sold over the past six to twelve months.  This increases the supply while the uncertainty in the economy is keeping the demand low.  Both of these factors are putting downward pressure on housing prices.

Low Demand:

With historically low mortgage interest rates and low property prices one would think that the demand for real estate would be huge.  It’s not!  Primarily, the uncertainty in the economy is straining nearly every industry and this is causing uncertainty in the job market.  That is keeping the demand in check.

So, what’s the future of housing prices in Charlotte, NC?

The current conditions cause the real estate prices to remain low.  This trend will continue until people stop worrying about losing their job.  When that happens we will see a year of increased demand.  However, the supply will remain high until the glut of inventory is either bought up by the new demand or it otherwise leaves the market.  Then, and only then, with a decrease of supply will we see the housing prices increase.  This will be a two year process - one year to regain consumer confidence and another year to buy the inventory. 

For more information visit Charlotte Real Estate Market Recovery.

For more information on the Charlotte Real Estate Market visit The Ramsey Group at Your Charlotte Connection.