CHARLOTTE, N.C. -- It was standing room only inside a meeting room at the Charlotte Marriott Executive Park on Tuesday morning.
“We were excited about the turnout and I believe the poor economy makes people more interested in economics,” said Lorrie Knudson, President of the Charlotte Regional Realtor Association. Usually 100 real estate agents show up for a meeting like this. The crowd this time was three times that.
Everyone wanted to hear what Dr. Lawrence Yun, Chief Economist with the National Association of Realtors, had to say about the housing market and more specifically, Charlotte.
“Relatively speaking, the Charlotte market is much healthier compared to other localities across the nation,” Yun told NewsChannel 36 after his address. He went on to say he believes Charlotte has made a turn for the better. “The worst is over. The possibility of an increase is developing,” he said, referring to sales prices.
In September, prices were down both month to month and year to year. Still, Yun predicts a steady, but slow increase the next couple of years.
“The inventory is down 20 percent. These are very good healing signs. The prices have yet to stabilize, but given that sales are rising and inventory is falling, it is just inevitable that prices will soon be stabilizing,” said Yun.
“I think he is right on. I sincerely hope he is right on,” said Knudson. When it comes to the reduced inventory Yun mentioned, Knudson says where we did have an 11 to 13 month of supply of homes for sale, we’re now closer to eight or nine months, including foreclosures. Around six months is a healthy market.
“I would say the good news is we’ve hit bottom. The bad news is that we have a way to go yet and if you bought at the peak of the market you still have challenges ahead of you,” Knudson said.
“Foreclosures are expected to remain elevated the next couple of years,” added Yun. But he went on to say as long as buyers snatch them up, like they’re doing now, he thinks distressed homes don’t pose as much of a problem. It’s when they sit and sit that prices drop even more.
Yun told the crowd he is increasingly concerned with Congress and talk of changes to the mortgage interest homeowners can deduct.
“Some of the policy discussions such as changing the housing mortgage deduction that will greatly harm the market as well as the economy and middle class homeowners,” he said.
Bottom line is our neighborhoods are still struggling but not as bad as two years ago.
“We don’t want real estate agents and people going out spreading the message that everything is rosy. It is really not. It is what it is and we have to make adjustments and reset,” Knudson said.
“We clearly are a different picture than a couple of years ago. Now the question is will it be a fast economic growth, and I believe it is going to be a moderate economic growth. But we will avoid a recession,” said Yun.
The Charlotte Regional Realtor Association tracks closings and sale prices for the area. We should get latest information from October sometime next week.
