Charlotte Didn't Play Speculation Games...

April 5, 2008

Lynnsy Logue The Real Estate Lady and Condo CanDo Charlotte NC

"Charlotte didn't play speculation game like the rest of the nation did
New statistics reveal the big difference"
ALLEN NORWOOD Charlotte Observer
You've read that speculators didn't drive up home prices in Charlotte as they did in many of the former hot markets now struggling.
Here are recent numbers that provide specifics:
Charlotte consultant Chuck Graham, on the Web site introduced by the city's builders, says investors bought 14 percent of homes sold here in 2006.
The National Association of Realtors says investors bought 22 percent of homes sold across the country in 2006.
Doesn't seem like a huge difference -- until you consider that's half again as much buying and flipping of houses.
The Realtors last week released their annual survey of vacation and investment home buying. Because it's a survey, not a study of buying data, information for specific markets like Charlotte is skimpy.
"Second home owners are not very good at responding to surveys," said Realtors spokesman Walter Malony. "We have to do a lot to get usable samples."
But here are interesting tidbits:
• Nationally, investors bought 21 percent of homes last year. That doesn't seem like a big drop either -- until you realize that's a share of a down market. Total sales of investment homes fell 18 percent from 2006 to 2007.
• The typical investment home cost $150,000 last year.
• Most investment homes -- 61 percent -- were single family; 20 percent were condos and 11 percent were townhouses.
• Seventy-one percent were existing homes.
• Thirty-nine percent were in the suburbs, and 20 percent were in urban areas. The rest were in small towns or rural or resort areas.
• The median income of investment home buyers last year was $92,900.