Don't Call It A Housing Slump
By Pat Riley, President, Chief Operating Officer, Allen Tate Realtors
By Pat Riley, President, Chief Operating Officer, Allen Tate Realtors
Allen Tate Company President and COO Pat Riley has been involved in the company's leadership since 1991. With more than 34 years of experience in the real estate industry, he has been instrumental in our company's expansion throughout the Charlotte and Triad regions
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There’s an ugly word that keeps appearing in articles about the housing market: slump. Housing slump catches up to Charlotte. Housing slump deepens in Charlotte area. Housing slump starts to hit stronger cities.
Defined, slump is a period of decline or deterioration; a mild recession in the economy as a whole or in a particular industry. For an athlete, a slump is a period during which he performs slowly, inefficiently or ineffectively. For the real estate market, the word is a misleading harbinger of gloom-and-doom that further erodes consumer confidence.
While it’s a highly descriptive word, I’d like to challenge the journalists and headline writers who use it with something they can appreciate – hard, honest facts. And I’ll reiterate something I can’t preach enough. Real estate is local, and Charlotte IS different than the rest of the country.
In 2007, a total of 39,983 housing units were sold in Mecklenburg County, according to Charlotte Chamber statistics. Yes, that’s a 9.4 percent decrease from 2006, when 43,748 were sold. But compared to the national numbers - a 35.8 percent decrease during this same period – our local numbers still look pretty darn good.
But let’s take this one step further. The years 2004 and 2005 were considered to be banner years for real estate. In 2004, there were 33,114 units sold, a jump of 30 percent from the previous year. In 2005, the number rose by 17 percent, to a total of 38,818 units. And the 2006 numbers – a record high – marked yet another 12.7 percent increase.
Bottom line: The number of housing units sold last year, in 2007, was still a solid 3 percent over the total number sold in 2005 and nearly 21 percent more than what we sold in 2004. And the average price for homes in 2007 was $231,170, the highest in the history of the region, and nearly a 5 percent increase over 2006. The national increase in the same period was less than 2 percent.
In 2008, houses are selling in the Charlotte region. They may be on the market a bit longer, and they may not command the inflated prices they sold for during the recent high times, but in most neighborhoods, they are selling for a fair price, within a few months. And while it may be a bit tougher to get a mortgage, those with good credit and proof of employment are still very viable candidates for home ownership.
Housing slump? Not in Charlotte. Maybe a hiccup: a minor difficulty, interruption or setback. Nothing a deep breath, a glass of water, and a little patience won’t cure. And a good Realtor®.
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Defined, slump is a period of decline or deterioration; a mild recession in the economy as a whole or in a particular industry. For an athlete, a slump is a period during which he performs slowly, inefficiently or ineffectively. For the real estate market, the word is a misleading harbinger of gloom-and-doom that further erodes consumer confidence.
While it’s a highly descriptive word, I’d like to challenge the journalists and headline writers who use it with something they can appreciate – hard, honest facts. And I’ll reiterate something I can’t preach enough. Real estate is local, and Charlotte IS different than the rest of the country.
In 2007, a total of 39,983 housing units were sold in Mecklenburg County, according to Charlotte Chamber statistics. Yes, that’s a 9.4 percent decrease from 2006, when 43,748 were sold. But compared to the national numbers - a 35.8 percent decrease during this same period – our local numbers still look pretty darn good.
But let’s take this one step further. The years 2004 and 2005 were considered to be banner years for real estate. In 2004, there were 33,114 units sold, a jump of 30 percent from the previous year. In 2005, the number rose by 17 percent, to a total of 38,818 units. And the 2006 numbers – a record high – marked yet another 12.7 percent increase.
Bottom line: The number of housing units sold last year, in 2007, was still a solid 3 percent over the total number sold in 2005 and nearly 21 percent more than what we sold in 2004. And the average price for homes in 2007 was $231,170, the highest in the history of the region, and nearly a 5 percent increase over 2006. The national increase in the same period was less than 2 percent.
In 2008, houses are selling in the Charlotte region. They may be on the market a bit longer, and they may not command the inflated prices they sold for during the recent high times, but in most neighborhoods, they are selling for a fair price, within a few months. And while it may be a bit tougher to get a mortgage, those with good credit and proof of employment are still very viable candidates for home ownership.
Housing slump? Not in Charlotte. Maybe a hiccup: a minor difficulty, interruption or setback. Nothing a deep breath, a glass of water, and a little patience won’t cure. And a good Realtor®.
Have Comments or Questions?
Ask the Experts
