As business returns to normal following the end of the government shutdown, many individuals hoping to buy a house in Charlotte may decide to pursue that goal in the near future. Providing favorable conditions for market growth, residential construction professionals are feeling optimistic, mortgage rates are still below historical norms and the local housing sector continues to improve.
In October, builder confidence in the market for newly built, single family homes was observed at a level of 55, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index. The recent reading admittedly decreased two points from the preceding month's figure, but suggests that the majority of industry professionals are feeling positive, as any number over 50 indicates that more builders view conditions as favorable, rather than poor.
Coming after months of strengthening, the dip in confidence could be due to tension caused by negotiations over the debt ceiling and government spending.
"Builder optimism remains above 50 and we are still seeing signs of pent-up demand in many markets across the country," said Rick Judson, chairman of the NAHB and a home builder from Charlotte. "This slight dip in builder sentiment is the result of continuing challenges in the marketplace with regard to the cost and availability of labor and lots and uncertainty in Washington."
Strong housing numbers predicted
However, the challenges presented to construction professionals may have caused them to step up production. Within the recent index, NAHB announced its expectations that around 900,000 housing starts were seen in September.
"Single-family starts dipped in July but rebounded in August, and we expect continued strength in September," said NAHB chief economist David Crowe. "Interest rates remain near historic lows and we don't expect the level of rates to have a major impact on sales and starts going forward."
Mortgage rates, home sales see increases
Providing evidence the national economy is continuing to make progress in its ongoing recovery, popular mortgage products saw interest levels rise during the week ending Oct. 17. According to Freddie Mac's latest Primary Mortgage Market Survey, 30-year fixed-rate mortgages averaged 4.28 percent, up from the readings of 4.23 percent recorded the previous week and 3.37 percent from the same time last year. Meanwhile, 15-year FRMs reached 3.33 percent, up from the prior week's 3.31 percent and 2.66 percent a year ago.
These developments might help Charlotte's housing market see additional gains in the coming months, as considerable progress was noted in September. Last month, a total of 2,825 home sales were closed in the Queen City area, representing a nearly 26 percent hike from the number of finalized transactions recorded in September 2012, the Charlotte Regional Realtor Association recently reported. What's more, buyers interested in entering the market may have a number of new options to choose from, as new listings jumped more than 22 percent in September – amounting to 4,102.
Those looking to calculate their purchasing power and research available properties can benefit by enlisting the help of experienced Charlotte real estate agents, like the team of consummate professionals at Lodestone Real Estate. Current conditions may not be seen in the coming months, so interested buyers could benefit by acting soon.