The 4th of July weekend is in the books, and we can now start to assess the “tax credit” closings in June and take a look at where the market is headed.
As expected, activity was up in June : there were about 11% more closings than there were in May. But perhaps surprisingly, the average price of homes sold in June was also up : by about 8%! Here’s a chart (note, you can ignore the July data, which is still very incomplete) :
So, where are we compared to previous years? In 2009, 1,655 homes sold per month, and so far in 2010 that number is about 1,600. If post-tax credit activity continues to be slow, then 2010 will probably not surpass 2009 in activity. However, thus far in 2010, the average price of homes sold is up by about 3%.
The big question remaining in 2010 is whether those people who sold to the “tax credit” buyers in May/June are going to go back out & buy another house this summer. Mortgage rates are at a historic low, and given the media’s daily hammering of how bad the market is, anyone in a position to buy is might find themselves in what might be the best buying environment in a generation.
Metro Charlotte has simply not seen the massive housing collapse (in terms of prices) that other areas of the country are experiencing, and other than low activity (closings per month in 2010 are roughly half what they were at the peak, in 2007), you’d be hard pressed to find a “safer” market than Charlotte, given the economic storm that the area has weathered.
So, let’s cross our fingers that a bunch of those 4,000+ homeowners who were able to sell in May and June get back out this summer to find a good “move-up” home.
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