In the latest compilation of data from the CMLS, the 3rd Quarter of 2010 posted the second highest average home sale prices over a seven year period for Mecklenburg county. Ending last month, sales from July 1 – September 30 had an average sales price of $242,104 – second only to 2007 when the average sales price was $244,847. This is quite remarkable when you consider that the Charlotte area home sales during the 3rd quarter were not influenced by the first time home buyer tax credit, which was slated to end June 30, 2010.
While this is VERY good news, it is important to understand the why behind the numbers. For the last couple of years, first time home buyers accounted for 40% of all sales in the Southeast according to the NAR Survey of Buyers and Sellers. For the most part, this means a buyer purchasing below $300,000 and given our market with a much lower entry price point, a first time home buyer can live comfortably around $150,000. With that incentive ended, sales volume dropped (41.8% fewer sales than Q3 2007) which gave more weight to the higher end transactions.
Expect to see a similar fourth quarter thanks to decreased sales volume and even fewer REO sales due to the foreclosure suspension issues.