Great Expectations – Real Estate Forecasts for 2012 and Beyond

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With all the year-end publications out there summarizing how things transpired in 2011 focusing on the “wins” and “losses” of the previous year, we thought it would be useful to take a look at the outcome of our real estate market from last year. We also examined how things look for the coming future in our region. The news is good. Between inventory that continues to sell, the promise for stronger price appreciation and persisting low interest rates – contrary to many media reports, it is a great time for real estate!

Home Sales Increased in 2011 With Expected Increases in 2012

As compared to 2010, total home unit sales rose steadily in 2011. Expected to continue in 2012, with inventory leveling off throughout the year (especially during the second half of the year after foreclosure inventory is projected to slow down), we can expect to see some stabilization in the market.

Distressed Sales Continue But At a Hopeful Slower Pace This Year

The number of foreclosures entering the market in October 2011 versus October 2010 was a significant 30%. However though home prices will still dip a bit more this year as a result of these distressed sales, it does not appear that this trend will carry throughout the entire year. The second six months look to be strong in terms of pricing, despite foreclosure inventory.

Price Appreciation Forecast Strongest In the Region

National price appreciation figures remain low however the Charlotte area is a stronger market and usually comes in ahead of the rest of the nation. Considering the four-year block of 2011 to 2014, while the rest of the nation is forecasted to experience a 1.1% appreciation rate, the Charlotte area will see appreciation as much as 10-14% (about 3% annually), as reported by Bloomberg.

Buying Power Will Remain Strong With Very Low Interest Rates

Amid speculation that interest rates will begin to climb again at some point in the latter part of 2012, the news is good for now that interest rates are still historically low. This will provide many homeowners the opportunity to upgrade into a bigger home while staying within the same payment range. Since buyers are able to get a lot more for their money right now, the market will continue to experience increased volumes in sales.

New Tool Available With Exclusive Features

To help assist our clients with their real estate endeavors, we have an exciting new tool available online for both buyers and sellers. Not only can you perform traditional home searches on this site, but you can also search based on advanced criteria that caters to such details as a specific school district, neighborhood or even subdivision. For sellers there is a market snapshot tool that provides information on home sales in the area, current listings and recent data so that you can use it to gauge your home’s potential.
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As we move ahead into the New Year and beyond the outlook is promising. It appears that we have weathered the worst and have much to look forward to. With our city pushing for new jobs there will likely be a hopeful added economic boost, further contributing to a stronger real estate market in our area.

If you would like to see how your home factors in on the selling market, or if you are considering seizing the amazing opportunities out there for buyers right now – please visit us for a customized consultation. We look forward to hearing from you!