It Was Bound To Happen

The Charlotte Observer is reporting that housing prices in our area have dropped, over a twelve month period, for the first time in seventeen years. There is no need to panic as the decline was .1 percent, as in one tenth of one percent. The article points out that the bottom may not have been reached but also that our local economy is doing well. I've said it before and I'll say it again...it is a good time to buy.

Charlotte home prices slip for the year
It's the first such drop since 1991, and things are a lot worse elsewhere – but that's little comfort for homeowners who can't sell.
By Kirsten Valle
kvalle@charlotteobserver.com

HOW CHARLOTTE STACKS UP
For the first time in 17 years, average Charlotte-area home prices fell year-over-year, according to a survey released Tuesday. But the Charlotte market was strongest in the survey of 20 cities. How home prices compare, April 2008 vs. April 2007:

Charlotte
-0.1% (Best in survey.)
Las Vegas
-26.8% (Worst in survey.)
Composite of 20 cities
-15.3%

Average Charlotte-area home prices have fallen for the first time over a 12-month period since 1991, figures released Tuesday show – and they might not have hit bottom yet, experts say.

Still, many remain optimistic, saying Charlotte's historically steady market, population growth and strong job outlook will help the city stay afloat in this increasingly sluggish economy. They point out that things are far worse elsewhere, with steep declines in urban areas nationwide.

Area prices dropped 0.1 percent in the 12 months through April 2008, according to the widely followed S&P/Case-Shiller Home Price Index, ending a three-month streak as the only one of 20 urban markets across the country still showing rising home prices.

“Charlotte is still holding up better than any other market,” Wachovia economist Mark Vitner said. “I think our economy is very resilient.”

That means homeowners should be ready to give up some price appreciation when trying to sell, he said.