The S&P/Case-Shiller index said Charlotte NC’s home prices rose 0.9% from April to May of 2009, so that must mean it’s time for Charlotte NC sellers to go ahead and raise those list prices, how exciting!
WRONG. The S&P/Case-Shiller report is an indicator, and only a month-month indicator at that. Sure it can pick up on changes in where the majority of activity is but it will never (and I can’t say that enough) never impact, report on or influence the realistic market value of your Charlotte NC home.
What good is the S&P/Case-Shiller index then? In the real world, when it comes to selling a home in Charlotte NC…..not much. It’s a trend indicator but so are real estate inventory reports and neighborhood real estate market reports for Charlotte NC, both of which happen to be a whole lot more localized than the S&P could ever be. Local and specific real estate market reports capture where the buyer activity is and actually reflect the competition you’ll be up against when selling a home in Charlotte NC.
What does a 0.9% monthly increase in Charlotte NC real estate sale prices mean? There was slightly more real estate sales activity at slightly higher price points than the previous month (during what’s typically the busiest time of year for real estate sales). The fact remains that the majority of real estate sales activity in Charlotte NC continues to be weighted at the lower price points (below $250,000/$300,000 in particular).
The reality is that sellers of real estate in Charlotte NC continue to face significant challenges in the form of increased competition and fewer ready/willing/able home buyers. I don’t care what “index” you look at, that reality has not changed and it’s critical to keep that in mind. If you missed what the Charlotte Observer posted about the just released S&P report, feel free to take a look here.
So Charlotte NC home sellers, sorry to disappoint but the S&P/Case Shiller Index really doesn’t have any impact on you personally. What does have an impact (for better or worse) is what’s happening in the real estate market in your neighborhood, price point and nearby neighborhoods when it comes to real estate activity in Charlotte NC.
Raise your asking price on a Charlotte NC home based on an “index” report? Not a tactic I’d recommend.
Copyright©2009 by Diane McDermott, All Rights Reserved, “Charlotte NC Sellers, Raise Your Asking Prices!!!”