Charlotte NC Area Home Prices Post Another Increase

From the Charlotte Observer:

Charlotte-area home prices logged another increase in July, the fourth monthly gain this year, according to a closely watched index released today.

Area sales remain in negative territory compared with a year ago, but rose .06 percent from June to July, according to the S&P/Case-Shiller Home Price Index. That’s the same as the revised monthly uptick for June, continued evidence of a slowly stabilizing housing market.

The broader index of 20 metropolitan areas also has been improving.

“We now seem to be witnessing some sustained monthly increases across many of the markets,” said David Blitzer, chairman of S&P’s index committee. But, he cautioned, downsides remain.

The first time homebuyers tax credit, which has fueled sales this year, expires Nov. 30. Blitzer also warned about the impact of “anticipated higher unemployment rates and a possible increase in foreclosures.”

Home prices and sales are still way off their highs, locally and nationwide, but the latest Case-Shiller reading is among the growing signs of improvement.

The index is especially meaningful because it tracks repeat sales of existing houses, the most precise broad measure of how home values are holding up. Charlotte’s prices held up longer than most markets but in April 2008, turned negative.

This March, Charlotte saw a tiny gain, followed by an April decline and now three consecutive months of gains. Those gains have narrowed the area’s price decline compared with a year ago to 9 percent. That’s the fifth-smallest of the group.

Compared with a year ago, all 20 markets remain down, although Cleveland and Dallas are nearing a positive reading. And 18 areas, including Charlotte, saw a monthly gain in July. Las Vegas remained in last place, with a 31.4 percent decline from a year ago.

Charlotte-Area Home Prices Creep Up

From the Charlotte Observer:

Charlotte-area home prices continued a slow creep upward in June, according to a closely watched index released this morning.

Area sales prices remain in negative territory compared with a year ago, but rose .7 percent from May to June, according to the S&P/Case-Shiller Home Price Index. While that was down slightly from the previous month’s uptick, it was the third monthly gain in four months and further evidences prices are stabilizing.

The increase comes as the broader index of 20 metropolitan areas also has been improving.

“For the second month in a row, we’re seeing some positive signs,” said David Blitzer, chairman of S&P’s index committee, adding “there are hints of an upward turn from a bottom.”

Home prices and sales remain well of their highs, locally and nationwide, but today’s Case-Shiller reading adds to a growing list of small improvements.

The index is especially meaningful because it tracks repeat sales of existing houses, the most precise broad measure of how home values are adding up. Charlotte’s run of rising values outlasted the 19 other markets for a long time. But in April 2008, the region turned to losses. This March, Charlotte saw a tiny gain, followed by an April decline and now two consecutive months of gains.

Charlotte’s prices compared with a year ago also improved, moving out of double digit losses, to a 9.6 percent decline. That remained the fifth smallest decline of the group.

Compared with a year ago, all 20 of the index’s markets remain down. But 18 areas had positively monthly gains in June, up from 13 in May. Phoenix, long the most depressed market, saw a monthly gain. Las Vegas registered the biggest monthly loss, which pushed it into last place, with prices down 32.4 percent from a year ago.

Windsor Park Homes Selling Fast

Charlotte, NC’s hidden gem of a neighborhood, Windsor Park, is a hot real estate market. Check out this article from the Charlotte Observer that describes the speed of real estate sales at this price point.

Bargain houses selling as others keep sitting:
Homes under $100,000 double share of market

Single-family homes under $100,000 have accounted for more than one in six Charlotte-area sales this year, almost double the rate before the downturn.

Some of these deals are older houses and rural properties, which are often less expensive. Other homes have fallen below $100,000 amid a weak market that’s pushed prices down. And a major driver of the low-end increase is foreclosures and distressed sales, more common among lower-priced houses.

The erosion of property values pains the broader community, driving down neighbors’ home values and property tax revenues. But it also means bargains for buyers. And reducing inventory at all price levels is a necessary step toward a housing recovery.

“These distressed properties have to get moved at some point,” said Matthew Martin, an economist and head of the Federal Reserve in Charlotte. “It will help the healing process in the market.”

Rising low-end sales during the second quarter helped give the region its best spring bounce from the winter doldrums in three years.

Jeffrey Hood, 25, and his fiancee Samantha Lear, 23, offered less than $100,000 last week on a four-bedroom east Charlotte house that sold for $175,000 in 2007. The house fell into foreclosure in January. The couple, who plan to wed next year, also expect to qualify for the $8,000 first-time homebuyer tax credit.

“We’re tired of renting, just giving money away,” said Hood, a maintenance mechanic for Carolinas Medical Center. “With the market being down, it’s a good time to buy.”

Sales at the very low end began gaining market share late last year as total home sales dropped sharply, according to Market Opportunity Research Enterprises. So far this year, single-family sales below $100,000 accounted for 18 percent of deals in the eight-county area, according to an Observer analysis of the Rocky Mount firm’s data compiled from court records. That’s double the 9 percent market share in 2006 and 2007.

About 40 percent of the area’s low-end single-family sales this year were in Mecklenburg County. Throughout the eight counties, nearly all were existing homes, not new construction.

The MORE Report, one of the most precise measures of the eight-county region’s home sales, doesn’t track which sales are foreclosures.

But an Observer analysis of Mecklenburg County data found about two-thirds of homes that sold for less than $100,000 this year had fallen into foreclosure during the last 18 months. That compares with about one-fifth of all county sales, based on data available from the county last week.

“Lower-end sales and foreclosures are absolutely driving the market,” said Joe Clorite, a Keller Williams Realtor in Charlotte.

“The magic number” for hot properties is $90,000 to $125,000, said Brenda Goddard, an Allen Tate Realtor, who represents Hood and Lear. “Everybody is looking for the biggest amount of bang for their buck, and those bargains are out there.”

And that means first-timers, newcomers, investors and other bargain hunters competing for the deals.

“When we see a house that we like, you don’t have time to think about it,” said Hood, whose current offer is his fourth. “You either move on it or somebody sweeps in and gets it.”

David Forker moved to Charlotte in January, not long after retiring from a 20-year career that began with mopping floors for a grocery chain and ended as a store manager. Forker, now 50, plunked down $72,000 cash for a house in northwest Charlotte.

The three-bedroom house had sold new in 2001 for $109,500, fell into foreclosure in 2006, resold for $91,000 and foreclosed a second time last fall, according to county records.

Forker has been a homeowner since shortly after graduating college and a saver, socking away enough money to retire two years ago. He worked in Virginia, tried living in West Virginia, but wanted something different. His research led him to Charlotte.

“Charlotte was the most affordable place to live. I got a great bargain,” said Forker, who also was drawn as a Panthers football fan and theater lover.

Real estate investor Kevin Brown moved from Florida to an uptown Charlotte apartment two years ago. He says he bought 20 single-family houses this year alone, most under $100,000.

“It’s been nice,” he said. “I can buy my properties 40 to 50 percent off their values.”

Brown, who is 32, began investing in lower-end houses in South Florida six years ago. He wanted a different lifestyle, so he researched cities across the country. Charlotte’s housing market looked more stable and profitable than other places like California and New York. He moved after selling all but two of his Florida properties.

Brown rents most of the houses, and says he does background checks on tenants before letting them move in. Business has been “pretty lucrative so far,” but he declined to say how much he is making.

Also, about once a month Brown buys a house, fixes it up and sells as fast as he can.

“I like flipping houses,” Brown said. “The rental business can be kind of boring.”

Charlotte-Area Home Prices Post Solid Gain

From The Charlotte Observer:
Charlotte-area home prices posted their best monthly gain in a year in May, based on results of a closely watched home price index released this morning.

Area sales prices remain in negative territory compared with a year ago, but rose 0.9 percent from April to May, according to the S&P/Case-Shiller Home Price Index. That was the second monthly gain in three months and was almost as big as the monthly rise in May 2008. The increase comes as the broader index also has been showing signs of improvement for several months.

“This could be an indication that home price declines are finally stabilizing,” said David Blitzer, chairman of S&P’s index committee.

Compared with a year ago, Charlotte-area prices remain down 10 percent, but that’s a lot better than some of the 20 urban markets tracked by the index.

Charlotte Home Closings and Prices Up

From the Charlotte Business Journal:
The number of residential real estate closings in the Charlotte market rose 5.9 percent in June from May, and the average sales price increased 9.8 percent.

There were 2,024 closings in June, up from 1,912 in May, according to the Charlotte Regional Realtor Association. The average sales price rose to $218,728 from $199,243.

Closings and sales prices are down significantly from a year ago.

Last month’s closings fell 26 percent from June 2008, when there were 2,734 closings. The average sales price dropped 6.4 percent from $233,670.

The average listing price of houses sold last month was $244,316, down 1.5 percent from June 2008. The average listing price in June rose 9.3 percent from $223,470 in May.

Charlotte NC Became 18th-Largest US City in 2008

From Charlotte.com

The city of Charlotte was the nation’s 23rd fastest-growing city for the year ending in July 2008, and is now the county’s 18th-largest city, according to Census estimates released Wednesday.

For bragging rights, Charlotte has passed Memphis, Tenn., in population. The Queen City has 687,456 people – up from 570,091 at the start of the decade.

The estimates don’t cover fall 2008, when the recession deepened and hit Charlotte in full force. It’s possible that next year’s growth numbers will be smaller. Mecklenburg County’s unemployment rate is now 11 percent, a few points higher than Wake County’s rate of 8.6 percent.

“The story will likely change over the next year,” said Mark Vitner, an economist at Wachovia, now part of Wells Fargo. “Since these numbers came out, the economy has weakened considerably.”

Vitner said he expects Charlotte to still grow in the next year, though at a smaller pace. It’s possible, he said, that the city may lose some newcomers to outlying areas, as people pinch pennies and look for cheaper housing.

“I suspect we’ll find more people looking for affordable places to live,” he said. “It’s typically more expensive to live in a city than in an unincorporated area.”

Charlotte’s growth has been fueled by the city’s strong economy for much of the decade, with areas near the central city being redeveloped with new housing. The city’s growth is also helped by N.C.’s liberal annexation laws. In many cases, Charlotte has grown by annexing outlying communities to capture their tax base.

If Charlotte continues to grow as the city has this decade, it may pass the population in cities such as Columbus, Ohio; Indianapolis and Jacksonville in the next 10 years.

Cary was the nation’s third-fastest-growing city in the past year, at 6.9 percent. Raleigh was eighth (3.8 percent) and Durham was 16th (3 percent).

New Orleans was the nation’s fastest-growing city, at 8.2 percent. It now has 311,830 people, up from 210,768 in 2006 following Hurricane Katrina. The pre-storm population of the city was 484,674.

These Census estimates are only for individual cities, and not metro areas. The six-county Charlotte metro area has a population of 1.7 million.

Charlotte NC One of the Fastest Growing Cities in the US

From money.cnn.com

The Big Easy is making a big comeback. New Orleans has steadily won back some of the population it lost in the wake of Hurricane Katrina in 2005, according to a government report released Wednesday.

New Orleans lost more than half its residents during the deluge. Few large U.S. cities have ever had to cope with a disaster on that scale. Since then, it has been one of the country’s fastest growing cities.

Only a couple of instances can compare. Galveston, Texas, was also devastated by a hurricane in 1900, a storm that remains the most lethal natural disaster in U.S. history with a toll of about 6,000 deaths. And San Francisco was almost leveled by the earthquake and fire of 1906.

New Orleans is now growing rapidly. Its population is up 8.2% in the 12 months that ended July 1, 2008, gaining 23,740 people to 311,853, according to the Census Bureau. That still leaves it well below its pre-storm population of 484,674.

For sheer numerical increase, New York City trumped the birthplace of jazz. During the same 12-month period, Gotham added nearly 53,500 residents, more than any other city. That represented a growth rate of only 0.6%.

Following New York City were Phoenix, which added 33,184 residents (2.1%) to a total of 1,567,924, and Houston, up 33,063 to 2,242,193 (1.5%).

The top percentage winners, after New Orleans, were Round Rock, Texas, part of the Austin metropolitan area, which grew by 8.2% to 104,446; Cary, N.C., which gained 6.9% to 129,545; and Gilbert, Ariz., which swelled by 5% to 216,449.

New York retained its position as the largest U.S. city by far. Its nearly 8.4 million folks crammed into 303 square miles is more than twice the number of people who live in sprawling Los Angeles, the nation’s second biggest city with 3,833,995 people.

Chicago, once the nation’s second city, has fallen nearly a million behind Los Angeles with 2,853,114.

Most old Midwestern and Northeastern cities have shrunk in population since World War II as heavy industry waned in importance to the overall economy. Much of the growth in these areas occurred in suburban towns and were not counted in central city population figures.

Meanwhile, many Sun Belt towns exploded with growth as job opportunities in new technology industries proliferated. Northerners, including retirees, also moved south and west, lured by the warmer winters and relaxed life styles.

Among old-line cities, New York has been one of the few to buck this trend. In the years since the last census in 2000, it has gained 355,056 residents, a substantial gain and more than the total number of people who live in St. Louis.

The highest rate of growth since 2000 was reported by McKinney, Texas, which more than doubled to 121,211 from 54,369. Gilbert, Ariz., was second with an 88.7% jump to 216,449.

Few losers
Of the 25 largest cities, only a handful experienced population loss.

Detroit, suffering from the turmoil in the auto industry, fell 0.5% to 912,062. The population of Philadelphia dipped slightly to 1,447,395 from 1.446,631. Baltimore dropped 0.5% to 636,919 and Memphis fell at about the same percentage rate to 660,651.

There have been some changes this year to the 25 largest cities.

For one thing, Denver moved into 24th place with 598,707 residents. It replaced Nashville, which dropped out of the top 25.

In addition, Dallas (1,279,910) edged past San Diego (1,279,329) to eighth place from ninth. San Francisco also moved up to 12th place; its population (808,976) surpassed Jacksonville (807,815).

And Austin (757,688) blew past Columbus (754,885) to 15th. Charlotte (687,456) leapfrogged Memphis (669,651) to 18th and El Paso (613,190) passed Boston (609,023) to 21st.

Charlotte NC: Local home prices rise, best among 20 markets

From Charlotte.com:
Charlotte-area home prices showed a slight monthly gain in March, the first uptick since last summer, according to a widely watched index released today.

Sales prices rose .3 percent compared with February results from the S&P/Case-Shiller Home Price Index. That was the best monthly performance among the 20 urban markets measured by the index and another milestone that could signal the region’s housing market has reached a bottom.

Charlotte-area sales prices remain down compared with March 2008, marking a full year of declining prices. But at 9.3 percent, the yearly decline also showed a tiny improvement over February’s reading.

Comparisons to a year earlier are important because they compare similar periods and reduce the impact of seasonal effects, such as the typical rebound of home sales during the spring.

Still, monthly results can signal a trend. The Charlotte market started a string of monthly declines in July and peaked at a loss of 2.6 percent in December’s index. The index is especially meaningful because it measures repeat sales of existing houses.

Nationwide, the index recorded a 19.1 percent decline for the first quarter, compared with the first three months of 2008. That was the sharpest drop in its 21-year history.

However, March was the second consecutive month since October 2007 in which the index for the 20 markets did not post a record annual decline.

With its 9.3 percent yearly decline, the Charlotte area remained in fifth place in March, behind smaller annual declines in Denver, Dallas, Boston and Cleveland. Those are the only five regions in which annual declines are under 10 percent.

Denver posted a .1 percent monthly increase and Dallas home prices remained flat in March.

Phoenix remains the hardest market in the index, with a decline of 36 percent compared with March 2008.

1Q Home Prices Fall by 19.1 pct to 2002 Levels: But GAINS in Charlotte

NEW YORK National home prices are at levels not seen since the end of 2002, but a closer look at data released Tuesday shows the worst may be over for some cities.

The Standard & Poor’s/Case-Shiller National Home Price index reported home prices tumbled by 19.1 percent in the first quarter compared to the first quarter last year, the largest drop in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.

In cities across the country home prices varied dramatically, depending on affordability, foreclosure activity and the local economy. The bottom may be in sight in some markets, but nationally home values are expected to decline – though at a slower pace – for the rest of the year.

“We continue to believe that it is unlikely that we are anywhere near a bottom in nationwide home prices,” according to Joshua Shapiro, chief U.S. economist for MFR Inc.

It’s hard to believe it could get much worse for homeowners in Detroit. Homes there are worth what they sold for in 1995. And while that’s good news for homebuyers, the implosion of the auto industry and economic fallout means fewer buyers have the money to qualify for a mortgage.

“I feel like houses here are free,” said Detroit area real estate agent Rose Marie Jouan with Re/Max Showcase Homes. Her house that she sold in 2004 for $200,000 is on the sales block, bank-owned, for $86,000.

In Phoenix and Las Vegas, where prices have plunged by half since their peaks, home values have receded to levels not seen since the beginning of the real estate boom. Phoenix prices are at early 2001 levels and Las Vegas values hover at mid-2002 prices.

Home values in Charlotte, N.C., Portland, Ore., and Seattle are steady at 2005 prices, the best showing of all 20 cities in the Case-Shiller report. All three were some of the last to fall into the housing slump.

The Case-Shiller report offered other hopeful signs the worst may be over for some cities. Denver prices posted an increase over February, while Dallas prices were flat.

Separately, Case Shiller said its 20-city index of home prices fell by 18.7 percent from the year before, and the 10-city index lost 18.6 percent. However, the rates of decline slowed in March, the second straight month they didn’t set record price drops.

Still, there are no signs home prices nationally have hit bottom.

“We see no evidence that a recovery in home prices has begun,” said David M. Blitzer, chairman of the S&P index committee.

All 20 cities showed monthly and annual price declines, with nine setting annual records. Fifteen cities posted double-digit drops and Phoenix, Las Vegas and San Francisco recorded declines of more than 30 percent.

Minneapolis posted a 6.1 percent decline from February to March, the biggest monthly drop on record for any metros in the indexes. Ron Peltier, chairman and chief executive of HomeServices of America, attributed the drop to a jump in distressed sales in March.

Economists will get a look at April housing data Wednesday when the National Association of Realtors releases sales data for previously owned homes, and on Thursday when the Commerce Department puts out numbers for sales of newly built homes. Economists surveyed by Thomson Reuters expect existing home sales to rise 2 percent from March to April, while new home sales are forecast to rise by 1.1 percent.

Development Continues in East Charlotte Despite Recession

According to this report published today in the Charlotte Observer, developers still are confident in the housing market of East Charlotte.

400 Homes Proposed in Elizabeth

Atlanta’s Winter Properties is seeking to rezone 6.8 acres between East Seventh Street and Weddington Avenue in the Elizabeth area for up to 400 multifamily residential units.

The petition, filed with the Charlotte-Mecklenburg Planning Department, said the acreage was assembled from 30 separate parcels now occupied by single-family houses, duplexes and multifamily buildings.

The site plan submitted with the application said that buildings facing Seventh and Bascom streets will be three stories with lofts and the remainder, four stories with lofts.

Winter Properties is asking that the property be rezoned from multifamily to a classification called mixed-use development district.

The development company, which couldn’t be reached Thursday for additional comment, said in its application that no commercial or retail uses would be included in the project

The application also noted that the development might be done in phases, but no timetable was provided. A public hearing on the petition is scheduled for July 20.