Housing Drop Not Impacting Charlotte, NC

According to a recent article over at MSN Money, Charlotte, NC has thus far managed to avoid the woes of the housing drop that has impacted other metropolitan areas.

From the article:

In a handful of metropolitan areas — Charlotte, N.C.; Milwaukee; Seattle; and New York — the per-square-foot price of real estate still is growing (though far more slowly than at the market’s peak), according to Radar Logic.

According to figures recently published in the City of Charlotte in its Bicycle Master Plan, Charlotte’s population is expected to increase by more than 50% in the next 22 years – from 664,000 to almost 1,115,000! All those people will have to go somewhere! That makes buying property in Charlotte a winning proposition!

If you’d like to get in on one of the best investment deals in Charlotte real estate before it’s too late, then you should check out Windsor Park. This traditional neighborhood features quiet tree-lined streets, city parks, schools, and convenient shopping – all very close to the city center and major transportation corridors.

Independence Boulevard Can Become the New South End

According to a recent article in the Charlotte Business Journal, Charlotte developer B.V. Belk Jr. views the Independence Boulevard corridor as ripe for redevelopment, similar to the renaissance under way in the South Boulevard corridor.

From the article:

While predominately a retail developer, Belk has begun putting together plans to construct up to 400 residential units along Independence, replacing an old motel across Arena Boulevard from Ovens Auditorium.

The target market: members of Charlotte’s work force who can’t afford pricey uptown condos but want good quality housing, Belk says. “It’s got to go first-class,” he says. “All the amenities. Swimming pool. Fitness center.”

A pending market study will determine if the site will have for-sale units, apartments or a blend, Belk says, but he’s leaning toward rental. He believes too few of those units are being built as developers focus on luxury towers.

Belk sees an underserved market and an area ready to be reborn. “This is the best place to be if you want to be close to downtown,” he says. “You never hit a red light.”

I agree that Mr Belk has hit on one of the region’s best kept secrets. However the neighborhoods in this area will ONLY support appropriate mixes of residential projects – all high density residential that is not owner-occupied has not worked in Charlotte. All property in this area MUST be built according to the Eastside Strategy Plan and any local plans like the Eastland Area Plan.

Mr Belk’s development plans also hinge on Independence Boulevard with a light rail line and not bus rapid transit!

High Taxes Force Homeowners Out of Hot Charlotte Neighborhoods

According to a recent article in The Charlotte Observer, rising property values are not always a good thing for some residents. People living on a fixed income and folks whose incomes have remained the same while their property tax bill has increased exponentially (due to property value increases) often find it hard to stay in their homes.

From the article – referring to the Olmstead Park area south of Dilworth:

“I’ve seen more than a few cases where people are forced to move because the tax rate is increasing,” he says, adding that the tax bill on his house has climbed 26 percent in the last two years. “Sure, you get a big check [when you sell the property], but to be pushed out of the life you know, when you’re 60 or 70 years old … That doesn’t seem right.”

The same process of increased gentrification has pushed many first-time home buyers and other middle income earners to other areas. If you’ve taken a look at home prices in the central Charlotte area recently, you know there is little to be had that is truly “affordable”. If you make $36,000 a year and have good credit then you’d probably qualify for a $120,000. With 0% down, your monthly payment with PI, taxes, MI, and hazard insurance will probably be around $900. Where can you find a decent home in Charlotte for $120,000?! By Charlotte, I mean – central Charlotte – not Mathews, Pineville, Huntersville, Monroe – or some other far-flung place where you have to commute to work for an hour.

Windsor Park. There are many wonderful homes in the Windsor Park neighborhood of east Charlotte that are truly affordable. With prices right around $100,000 for a home that needs a little bit of work to $130,000 for an up-to-date home, Windsor Park is a bargain hunters paradise of Charlotte real estate. Many people are making the smart choice to forgo the long commute (It’s just 15 mins from Windsor Park to SouthPark and Uptown Charlotte.) and settle in this cute neighborhood. While Windsor Park neighbors aren’t high earning bankers and lawyers; they are however teachers, police officers, civil servants, young families, single women, single men, the creative class, retirees, and many other folks who like living in a tree-lined, safe neighborhood but don’t have money to burn.

Charlotte Still a Buyer’s Market – for Some

Tara Servatius, a writer with Creative Loafing Charlotte, a year and a half ago wrote the best article uncovering the woes of finding decent, truly affordable housing in Charlotte. Seriously, this article is a MUST READ for anyone beginning to look for a home in the central Charlotte area.

However, things have changed in the 18 months since her article ran. Prices in the Charlotte real estate market have continued to climb while inflation, rising medical costs, and high gas prices have taken an ever increasing bite out of our pocketbooks. Even with low interest rates, it is even harder to buy a decent place to live in Charlotte. Many of the neighborhoods that Ms Servatius mentions have increased in value and out of reach for civil servants and other professionals like teachers and nurses or single people looking for their first home.

Check out these choice bits from Ms Servatius’ article. Then I’ll give you some solutions!

Anna Lefoy, 28, thought it would be easy.

She would just call up a real estate agent, and after a couple months of looking, she’d buy a house near downtown. Not a 600-square-foot condo like all her friends were buying, but a real house with a yard, shiny hardwoods and those big, chunky baseboards they just don’t make anymore. The realtors showed her the “bargains” in the Arts District, Plaza Midwood and Commonwealth.

“They were all $175,000 and needed $50,000 worth of work and were on a postage stamp of land,” Lefoy says.

Lefoy wasn’t looking for the Taj Mahal or anything. She was willing to overlook some imperfections, but she didn’t want to live next door to a crack house, either. Eventually, reality dawned on her. On the salary she made as an event planner, she couldn’t afford to buy a house in a downtown neighborhood. “I was in tears,” she said.

So what’s left for those who don’t want to do the urban pioneer thing and spend the next five years living next to a boarded up house, waiting patiently while the neighborhood appreciates? That’s what Lefoy and others like her who want to move a short drive away from downtown wanted to know.

I am sure you want to know too!

Like I said before, most of the neighborhoods Ms Servatius mentions have homes that are now $150,000 and above – and those require a bit of renovation. Where can you find homes that are good-quality, in neighborhoods with safe, tree-lined streets that can still be had for around $100,000? The answer my friends is Windsor Park.

Where is Windsor Park? -

Windsor Park is a neighborhood in Charlotte, NC that includes the area surrounded by Kilbourne Drive (west side), to Eastway Drive (west side), to Shamrock Drive (north side), to North Sharon Amity (east side), to Central Avenue (south side), back to Kilbourne Drive.

Windsor Park is the focal point of the East Charlotte renaissance. Its quiet, tree-lined streets represent a connection from a rich history, with the oldest home in Mecklenburg County and the Charlotte Museum of History, to the present and an exciting future with ongoing major redevelopment projects and exciting change.

A Charlotte Neighborhood Where Teachers, Fire Fighters, Police Officers, and other Civil Servants Can Be a Part of the American Dream

Due to rising home prices, urban redevelopment and gentrification, increasing inflation, and stagnant wages, it has become more difficult for many Americans to buy a home. Charlotte, NC has avoided many of the more outrageous price increases related to the real estate bubble traumatizing other parts of America. However, many of the more affordable homes in the Charlotte metro region are way, way out in the blah tract home suburbs. Charlotte suburbs like Fort Mill and Rock Hill, SC, Monroe, Mint Hill, Mathews, Huntersville, and Gastonia, NC are places where middle income earners can still afford to buy a home. The problem with this is that they spend have their lives in a car driving from their homes to work in central Charlotte. With rising gas prices and increasing traffic congestion in the Charlotte region, people are really taking a fresh look at neighborhoods in the center city. There are many developments in central Charlotte for people who can afford a $200,000 condo. However, what if you don’t have $200,000 or would like a little bit of yard? Have you ever tried to grill out on a condo balcony? Not so fun – and probably illegal because the grill has to be a certain distance away from the building!

Where can people in Charlotte who make less than $50,000 a year afford to by a nice sized home with a beautiful yard in a safe neighborhood – and still avoid the dreaded commute?! Windsor Park in east Charlotte is the perfect place to call home if you’re looking for a great neighborhood with affordable, quality homes, that keep you from driving your life away. Windsor Park was developed in the 1950s and 60s and the homes are well built. Most of these homes are 2 to 3 bedroom homes that are on .25 to .5 acre lots. With mature trees, good schools, and safe streets, Windsor Park is a great place to raise a family or buy a first home. Windsor Park is also a great neighborhood for flipping. Many of these homes need a little TLC – but the construction, neighborhood, and land will give you a great return on your investment.

This home at 2237 Birchcrest Dr in Charlotte is a perfect home for a first time homeowner. It’s been renovated and featured three bedrooms and two baths. It has a private fenced yard and of course in located perfectly in Windsor Park. This home is on the market for a very reasonable $127,000.

Charlotte’s East Side Getting Attention From Developers

WSOC TV, a local Charlotte, NC television station ran a story this summer about the massive amount of attention that east Charlotte is getting from developers.

From the report:

Developers are investing hundreds of millions of dollars in a side of Charlotte that doesn’t always get attention for growth.

Eyewitness News counted about a dozen projects taking shape in east Charlotte. The biggest example — a company is knocking down Morningside Apartments and building Morningside Village, with hundreds of homes and thousands of square feet of shopping.

Long-time east Charlotte resident Tim Griffin said, “It’s just getting nicer by the day and more is going on by the day.”

Residents and realtors hope a new look leads to a new reputation. One realtor, Robin Lincoln, said, “It’s a fun neighborhood to live in. It’s very vibrant, it’s very hip, there’s a great diversity of cultures here.”

Another realtor, Shonn Ross, said, “You know, people who lived here a long time have that kind of view of this side of town, but it’s changing. It’s not what it used to be but people have a hard time getting over that.”

City council members who represent that side of town still find themselves jumping out of their chairs, saying, ‘Look over here.’

“I do that all the time, haven’t you noticed? I’ve got springs that I sit on because I am so supportive of the east side. People just have to get over perception,” said Democrat Nancy Carter.

Check out the video of the story.

Links to the east Charlotte developments mentioned in the report:

The Vyne – now under construction!!!

Duo at Central and Briar Creek.

East Charlotte Homes Mean Mortgage Affordability

According to MSN Money Columnist Liz Pulliam Weston, the classic formulas for mortgage affordability could lead you to financial ruin. In her article, she extols the virtues of a right-sized mortgage.

Ms Weston writes,

A too-big house payment can, at the very least, leave you with too little money for other goals: retirement, vacations, college funds for the kids. At worst, it can leave you vulnerable to foreclosure and bankruptcy. …

The traditional way to calculate that is to add up all your income and make sure that your housing expenses — mortgage payment, homeowners insurance and property taxes — don’t exceed a certain amount of that total. The traditional limit, still used by many lenders, is 28% of gross monthly income. Some financial advisers recommend capping your outlay at 25%; others suggest stretching to 33% or more. …

These limits, by the way, apply only if you don’t have a lot of other debt. Most lenders don’t want more than 36% of your total income to go toward mortgage and other debt payments. If your total debt would push you over that figure, most lenders will reduce the size of the mortgage for which you qualify.

Of course, this math is in isolation of your individual situation. Depending on your personal financial goals, such as your retirement, your kids’ college educations, (braces, car, insurance), or furniture and maybe a vacation (!!) you may not want to spend right at 36% of your income on a house. You’d probably want to stick to 25% or less. If you make $45,000 a year, that means you could afford to buy a $128,745 house. Being “house poor” is no fun and can get you in debt over your head very quickly. With a too-large house payment, you might forgo an emergency fund or even retirement savings. That’s too risky for me and not good financial practice.

The question remains – Where in Charlotte can you find nice, quality homes where people with limited budgets realize the dream of home ownership? – The perfect Charlotte neighborhood for building equity, raising a family, and living well is Windsor Park. Homes in Windsor Park are priced very reasonably considering their convenient location less than 15 minutes away from Uptown Charlotte. The 2007 average sale price for a home in Windsor Park was about $105,000. Nice-sized yards with mature trees, quality 1960s construction, and neighborhood schools make Windsor Park a wonderful neighborhood in central Charlotte. When you buy a home in Windsor Park, you’ll be able to afford to start or raise a family and do some fun things – like hitting the beach or going out every once in a while – rather than being a slave to your mortgage lender!

Windsor Park in East Charlotte on the Upswing in Neighborhood Cycle

In a blog post from about a year ago, Erik Hare shared with readers his thoughts about neighborhood life cycles. Reflecting on his writing and the articles he references, I think that Windsor Park and east Charlotte in general are poised for major growth and redevelopment in the near future. It convinces me further that Windsor Park is the perfect Charlotte neighborhood.

From Mr Hare’s post (my comments in parenthesis):

One of the great secrets to the whole process is knowing when a neighborhood is worth the investment in sweat, time and money. How do you know if the ‘hood is on the upswing? How do you organize to see that your investment is matched down the block?

These questions have been dealt with by many policy experts and government agencies since the Depression. Some conclusions were summed up in a paper I came across recently by John Metzger of Michigan State, titled “Planned Abandonment: The Neighborhood Life-Cycle Theory and National Urban Policy”. (PDF)

The basis of the theories that many agencies were operating under was the simple fact that many neighborhoods are built at the same time with a similar quality. It is simply assumed that the value of a neighborhood is the total of the quality of its housing stock, which my experience tells me is reasonable. This quality erodes over time, and the neighborhood changes. According to the Life-Cycle theory, there is a terminal point at which government intervention is necessary.

Some of this is simply common sense and the real observation that neighborhoods can face periods of decline. But the policies that have been crafted to deal with the situation are lacking in key places, as shown by the holes in the theory itself.

For one, the cycles are described as a line of constant decay, rather than a circle that is completed by renewal. Reading the documents produced by Metzger, the assertion that homogeneity is good gradually becomes an overtly racist assertion that minority tenants are a sign of “accelerating decline”. Lastly, the role of individuals, such as those of us looking to make our own homestead or a good buck, is conspicuously absent. (East Charlotte’s perception declined as more minorities moved into the area. I think this is a sign of racism. Also there are many people homesteading and investing in east Charlotte neighborhoods like Windsor Park.)

What is important about the theories shown is that they reflect and reinforce conventional wisdom about what a healthy neighborhood is. Not only does this make for bad policy, it offers very few clues regarding how those of us who wish to be a part of a renovation cycle can do it. I think it is good reading all the same, if for no other reason than it outlines just what neighborhood redevelopment has been and is still up against. Opportunities exist where other people do not understand the potential, and the policies we have lived under have only reinforced misunderstanding.

How can we tell where a neighborhood is in its life cycle, and whether it’s a good buy? I think the best way to do this is to take a step back and look at the problems neighborhoods face, and how we can evaluate them without bias.

Wear and tear happens constantly, and needs to be addressed. Residents often do not address this because they are getting older, are no longer resident owners, or have stopped seeing any reason why they should reinvest – a problem accentuated by properties or residents they see as less desirable around them. In a steady-state, renovation and repair is also constant, and there is no general decline. We have seen this happen in the West End lately, where renovation has been a constant presence since the late 1970s. (Code enforcement – number of residents, life safety, street appearance MUST be maintained!)

Sadly, some neighborhoods still bottom out as described by the classic theory. An employee of mine recently picked up a home that needed gutting in Midway. I could tell it was a solid building. But was it a good buy? I had to check out the neighborhood before I could say. When I counted 12 dumpsters parked outside of houses in just a few blocks, I knew she found herself a great house. The whole neighborhood was completing the cycle and being renovated all at once. Midway has probably already bottomed out by the actions of so many people working so hard – and I understand there are some good signs in Frogtown.

That is what is so important about the Neighborhood Life-Cycle theory and why potential renovators have to understand it. Once you understand how terribly limited conventional wisdom and government policy are, you can see the holes. Simply driving around a neighborhood that is supposed to be on its knees and seeing a bustle of activity is the best way to find an opportunity that most people are overlooking. That’s how you can create either a great home or a decent bundle of cash for yourself. And there are many such neighborhoods, especially in Saint Paul.

Organizing people who have taken on these houses is often rather easy. It starts with a few meals and drinks out on the porch or the closest park. If everyone is taking on a new risk with all the strength of heart and arm and brain, most will want to organize – if for no other reason than to swap expertise. From that, working together, they can start getting the support needed from the city or other government to finish off the job they started. Soon, an entire neighborhood has come around, just as Mac-Groveland or Ramsey Hill did. (The City of Charlotte needs to STEP UP and meet its obligations to the citizens of east Charlotte. Their lax code enforcement and poor planning helped create this mess. They need to help fix it!)

Neighborhood cycles are not inevitable. What they represent is not something to fear but a great opportunity, because despite conventional wisdom they are not the norm. Cities are the sum total of their neighborhoods, which are in turn the sum total of the houses that make them up. Government intervention is slow and often subject to tired old theories that aren’t always true. The nimble and smart homeowner can take advantage of this, making things happen on their own and with their new neighbors.

Two Great Buys in Windsor Park

Check out these two CUTE properties in east Charlotte’s Windsor Park neighborhood!

 This is a well cared for all-brick home. All hardwood floors except tiled baths and new vinyl in kitchen. Cute rocking chair front porch and a deck too! Attached outside storage and shed. Nice one car carport w/door leading to mud room. Updates include range, microwave, and heating and air ‘03. Dishwasher and kitchen floor’06. Windows and gutters are only about 5 yrs old too! New gas hot water htr Jan ‘08.

I’ve been in this house. It’s really, really in good shape!! It’s a great value in the hot Windsor Park neighborhood. It’s located at 3924 Irvington Dr and is listing for $122,900.

Another great home now on the market in Windsor Park is this super cute all-brick ranch home on 1/3 acre fenced yard with mature trees. Hardwoods, new tile and pergo floors throughout. Fresh paint. 1 yr old hot water heater. Rec Room, back porch, and above ground pool make this home great for entertaining. It’s listing for just $120,000! Check out the additional images. You’ll fall in love with this cutie!

Best Charlotte Neighborhood for Gays and Lesbians

According to Gary Gates of the Urban Institute,

“…vibrant gay and lesbian community provides one of the strongest signals of diversity and tolerance, both within neighborhoods and cities. “

“…my work with the census data shows that the typical neighborhood where a gay or lesbian couple lives tends to have higher proportions of nonwhite, higher proportions of non-English speakers, and higher proportions of foreign-born, all evidence of sort of higher degrees—if you think that people kind of vote with their feet and people live in places where they can be more happy and productive, then this suggests that these are indeed places that are more tolerant; and the presence of the gay and lesbian community provides a signal of that tolerance. But more than just a signal, I would argue that gay and lesbian people actually contribute to a community’s tolerance and change the level of tolerance in a community.”

Many neighborhoods in Charlotte like NoDa and South End are already built-out in terms of gay and lesbian homesteading and urban pioneering. So, where are gays and lesbians moving to in Charlotte now? They’re moving to the east side. That’s right, east Charlotte is the new frontier for the LGBTQ community. In particular, Windsor Park with its reasonably priced, super cute, quality-built homes is drawing more and more gays and lesbians to its tree lined streets.

Read more about why it’s good for cities to court the gay and lesbian community.