CHARLOTTE — In a recent blog post, researchers at the Federal Reserve Bank of Dallas expressed concern that U.S. home prices are out of step with market fundamentals.
Certain economic indicators those researchers are following — specifically price-to-rent ratios and the price-to-income ratios — showed that “2021 house prices appear increasingly out of step with fundamentals.”
[SPECIAL SECTION: Affordable Housing Crisis]
On the other hand, the Fed researchers also noted that there is no indication that a correction would be comparable to previous housing bubbles because “household balance sheets appear in better shape, and excessive borrowing doesn’t appear to be fueling the housing market boom.”
In February, the Charlotte region saw 22% annual growth in median home prices to $360,000, according to the Canopy Realtor Association. As part of CBJ’s residential real estate firms survey, we asked executives at local agencies if they are concerned about a housing bubble and to share their views on house prices in Charlotte.
This is a developing story. Check back with wsoctv.com for updates.
“I am not concerned about a housing bubble here in the Carolinas or Charlotte,” says Pat Riley of Allen Tate Realtors. “Lack of supply will again in ‘22 cause above average appreciation for the seventh year. The average price per square foot and real estate taxes are still way below where people are relocating from.”
(Watch the video below: ‘Complicated’: Development for affordable housing near South End runs into setback)
©2022 Cox Media Group
