During the national housing market down turn, many people have shared concerns and inquiries as to the health of our market.
How are Charlotte homes for sale? Overall, our market continues to do very well. There are some things to consider prior to purchasing. Many investors have invaded our market. These investors have turned ideal residential neighborhoods into rental neighborhoods. This is especially prevalent in the lower priced new homes. Investors have destroyed many of these areas. Rick, how can investors destroy neighborhoods. First, every time an investor purchases a home, it distorts the true market demand. This causes prices to surge for everyone. Then the investor rents the home to a tenant. Tenants do not care for the home like a home owner. You will discover high grass, garbage strewn about and vehicles parked all everywhere.
As more investors purchase the neighborhood, the property values decline. Home owners are now stuck because they own more for their home than the current value of the neighborhood. Next you have foreclosures and then more rental units. It continues to spiral downward.
The next area to avoid are the very "hot" neighborhoods. Certain neighborhoods have a great reputation and their values increased extremely well over the past two years. Investors also got wind of this appreciation and moved in with their renters. This dramatically cooled the market. In addition, many of the owners in these neighborhoods thought they would sell and take advantage of the appreciation. Now the market is saturated with homes in these neighborhoods. What will be the net result? Investors will figure out that it is difficult for them to make money in our rental market. They are better off rehabbing older homes in challenged areas.
Home owners that saturated the market in hopes of recapturing the appreciation will take their homes off the market and the neighborhoods will stabilize.
Would I recommend Charlotte homes? You bet! I will also caution you on where to buy and where not to buy. You deserve an agent that actually understands the economics behind the housing market.
