Why Have Real Estate Values Held Up in Charlotte NC?

Why have real estate values held up in Charlotte NC? This is a question that I am asked several times each day. Locals are curious, investors are deciding where to spend money, relocating folks want to know why in the world this real estate market isn't tanking like the one they're leaving.

First of all, you have to understand that Charlotte NC was never one of the 'bubble' markets. We didn't have 20%, 30%, 40% gains year over year. It just didn't happen here. Why? In a nutshell, new construction and available land. Think about it-if you as a homebuyer are faced with two options which are very similar except that one is brand new and one is 5 years old, which will you buy? The new one, if the prices are anywhere in the same ballpark. In the Charlotte region, we have had an abundance of buildable, available land, inside of a 30-45 minute radius of uptown/downtown/center city Charlotte. That's a reasonable commute time for just about everyone, so new construction has made sense.

We did see a pickup in the resale market after Hurricane Katrina, when the costs of raw goods skyrocketed due to increased demand. The builders were just responding to cost increases for sheetrock, drywall, lumber, concrete, paint, etc. And then resale became the much better value. But a pickup in this area means 5-7% gains as opposed to 3% gains. Still not in the region of 30% gains that were seen in California, Arizona, Florida.

So when the markets began to normalize-and that's the situation, not a tanking, a normalization- Charlotte NC stayed stable. When you don't spike up, you don't spike downward either. Thank heavens.

There are other reasons Charlotte's real estate market is stable. We have a net population gain year over year. We have low unemployment coupled with positive job creation. We have a highly educated workforce and affordable, available ongoing educational programs in the area. We have a low cost of living. We have affordable housing for the most part. We have strong public schools. We have a temperate climate. We have a favorable tax and political structure for businesses.

Add these things together and you can begin to see why I describe this market as a blue chip investment. And blue chips are a part of any investor's portfolio. Perhaps not the whole thing, but everyone needs something stable that is on a continuous increase.

Still don't quite understand? Come visit us. Once you see the area, experience the friendliness of the residents, enjoy the sunshine and the available activities, you might just understand why Charlotte is a smart place to buy right now or whenever the time is right for you. Need more info or have more questions? Email me, I'll be glad to help however I can with your buying, selling, or investing needs.