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Charlotte Cheap Homes Still Slowing New Home Construction

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By : John Cutts    99 or more times read
Charlotte cheap homes are still slowing down new home construction in the area, as shown in the sharp decline in lumber sales to homebuilders in the area.

Purchase orders and sales of southern yellow pine are being used by research firms to track new home construction because this type of pine is the one used to frame new houses. According to Forest2Market, one third of all yellow pine sales in the country are used to build new houses and the rest are turned into treated lumber for use in the assembly of decks and other exterior structures.

Pete Stewart, head of Forest2Market, said that homebuilders hoped they can sell more in the spring partly because of the expiration of the extended and expanded tax credits, but they were proven wrong.

Housing analysts said that the continued increase in unemployment and the entry of more residential properties into foreclosure auctions in Charlotte have been preventing prospective home buyers to purchase new homes.

Even townhouse apartments have been suffering difficulties as their occupancy rates continue to fall. Apartment complexes like Village at Brierfield have been seeing their occupancy rates falling to about 64 percent. Only certain apartment buildings like Bexley Creekside and Auston Woods have been able to maintain their occupancy rates at above 95 percent.

A number of apartments suffered last year from broken leases when renters took advantage of the federal tax credits, low mortgage rates and a high number of Charlotte cheap homes to make their first shot at home ownership.

While vacancy rates increased in some apartment complexes and sales of new homes declined in February, sales of all types of home in Charlotte rose by 3.6 percent year-over-year, according to records from the Charlotte Regional Realtor Association.

However, when compared to total home sales in January, February sales in Charlotte dropped from 547 units to only 332 units, with the average sales price falling from $195,623 in January to $189,743 in February. Home sales and average home prices were higher in Raleigh, the capital city of North Carolina. However, other analysts put the average sales price in Charlotte higher at $191,288, based on their own house sales data.

Lyn Kessie, head of the realtor association and the Carolina Multiple Listing Service, said she is hoping that the spring house selling season will surge not only because of Charlotte cheap homes, but also because of improvements in economic conditions.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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