I live in Charlotte NC and have since 2002. Moved from northern CA.
This is my general idea of the housing market.
1998 to 2002 houses went down in price per sqft. That was mainly due to builders switching from semi custom to tract.
2002 through now, the basic factor that has governed the market is inflation. Essentially you can buy a new house today similar to one in 2002 in a similar neighborhood for about the same inflation corrected price. If you are buying a tract house, rent should be about = payments. A 2200 sqft is ~1100 for rent in a good area. A straight 30 year will right about cost that including most of the MIP, taxes, insurance and P&I. Dont expect any real gains when you sell either.
There are also bubble markets in charlotte but I expect those to die a quick death in the comming waves of foreclosures etc. Those will more than likely drop to the same basis the lower priced ones are going for. Typically Tract houses sell for what you can build it for + 10%. Bubble areas have been selling for a lot more. I expect the bubbles to burst. And I dont expect much of a drop in non bubbles. Over supply has always been the trade mark of charlotte and will continue to be so. Builders will build, and build, and build … dont expect gains at any time, but more than likely you wont lose.
Cool.
Cow_tipping.
