28 Aug August Mortgage News Recap
The lack of home inventory continues to create challenges in the national housing marketing, and Charlotte home prices are growing at a high rate. The city of Kannapolis is betting on its own redevelopment, and the luxury home sales market is starting to make a comeback in the Cape Fear Region. Here are some of the stories we are watching:
New Home Construction Offset by Low Inventory
Even though home construction has seen a 2.4% increase year over year, this rise is not enough to counterbalance the low inventory of housing on the market. Prices for properties have increased at a quicker pace than the rate of income growth. This combined with a continued lack of homes for sale makes it difficult to become a homeowner. According the National Association of Realtors , there was a 7.1% drop in June from the same time last year.
Home Prices in Charlotte Continue to Appreciate
The National Association of Realtors reported that during the second quarter of 2017, home prices in Charlotte grew at one of the highest rates. Median home sale prices increased by 7.4% in Charlotte. This outpaced the nation (6.2%), Atlanta (6.7%), and Charleston (6%). One of the primary reasons for the increase is the low housing inventory in the area.
Kannapolis Makes a Bold Bet
The city of Kannapolis, about a half hour northeast of Charlotte, has gone through some tough times in the past year as many industries have left the state and local businesses closed. However, the city decided about two years ago to invest in itself. Nearly $9 million has been spent by the city of Kannapolis to buy the majority of real estate in its downtown in order to create a lively and entertaining space that includes an urban park, apartments, a hotel, a performing arts center, and a sports complex. The goal is for this major public investment to encourage over $374 million of private investment. Leaders hope that this downtown revitalization will bring new residents and plenty of reasons for them to stay.
Luxury Properties in the Wilmington Region Show Signs of Life
Accordingly to local real estate agents in the Wilmington area, there has been more recent interest in the higher end of the housing market. According to data from the latest report on higher-end properties sales by Just For Buyers Realty, there is data that backs the Realtors’ estimation. In July, eight properties priced over $1 million sold compared to only six at this same time last year in New Hanover County, and one high-end home sold for both Brunswick and Pender counties year over year.
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Boak, Josh. “US home construction slumped in July.” Web blog post. The Charlotte Observer. 16 August 2017. Web 16 August 2017.
Dunn, Andrew. “Sleepy, struggling downtown Kannapolis is set for a major overhaul.” Web blog post. Charlotte Agenda. 28 August 2017. Web 28, 2017.
Jensen, Scott. “Charlotte Home Prices Grew At One Of The Highest Rates Last Quarter.” Web blog post. Charlotte Stories. 23 August 2017. Web 23 August 2017.
Nunn, Cece. “Higher End Of The Housing Market Shows Renewed Life.” Web blog post. WilmingtonBiz. 21 August 2017. Web 21 August 2017.