I have numerous people contacting me to ask about the state of the Real Estate market in Charlotte. Perception is reality and many people still watch the news and believe the media. Here is the national Real Estate market in a nut shell:
Theory 1: A few years back the media jumped on the band wagon that not enough Americans had the privilege of home ownership. The "mean banks" were excluding segments of our society from success.
Reality: Mortgage companies are businesses. They based loans on statistics based on various credit criteria including your credit score, your debt-to-equity ratio, your w-2's and length of time at your current position/profession.
Results: The media created "NEWS stories" and public pressure (sheep being led by the media) placed pressure on the Government to take action.
Solution: The Federal Government pressured lenders to loosen up their criteria for loans. The mortgage companies complied with the Government request and created high risk loans (termed sub-prime loans). The lenders complied with the Government pressure but the Government also agreed to guarantee the bulk of the loans.
Now let's look at the latest media crisis:
A percentage of the borrows of "High Risk" loans did not make their payments and blame the banks once again. The media jumps on the band wagon and blame the banks once again. The Government reacts once again. Sub-prime loans disappear.
What percentage of homes are actually in foreclosure? How many of those homes were the result of the lenders deviating from their statistical data? These are loans that should have not been made in the first place! Thank you media and thank you Uncle Sam!
Reality: Much of the public have not figured out that the media is creating their reality. We fail to trust our own eyes and ears and rely on media hype and sensationalism.
Results of sub-prime lending:
1) People were given loans that should not have had them. They are proving that the statistical data was correct.
2) The sub-prime industry superficially created demand. Builders that focused on the lower priced homes will need to rework their business strategy. In the short term, they will have excess inventory homes (homes already being built where the borrower can no longer obtain financing) and need to sell these homes. The builder must be careful because if the builder discounts the home too much, the builder has destroyed the future profits by devaluing his development.
3) The reality created by journalists has forced logical and safe buyers from purchasing their homes. People are now afraid to make their decision based on the media hype.
Ultimately, this media crisis will pass. The media will create another perceived reality and people will follow. Once upon a time this type of journalism was referred to as "The Tabloids". The Tabloids have now over taken the national media.
How is the Real Estate in Charlotte North Carolina? Charlotte North Carolina Real Estate has not changed. We still have a great climate, fantastic business opportunities and our homes continue to appreciate. Should you trust your instincts and make your own decision or wait for the media to lead you?
Everyone in the country has the free will to think for them selves. Why did you want to move to Charlotte? Did anything really change? If your credit needed some work before you make your move, then if moving is important to your life, you will work on that credit. If you are ready for new opportunities or ready to improve the quality of life for your family, then you decide what is best. I have resided all over this great country and chose a return to Charlotte. We have a great population and a great culture. I am proud to call Charlotte home!
I would love to help you find a great home in this fantastic part of the country. Visit Charlotte North Carolina Real Estate for additional information about this great area.
