Hard money lender Lima One Capital releases analysis of Charlotte real estate market trends
CHARLOTTE, N.C., Sept. 24, 2013 /PRNewswire/ -- Charlotte Hard Money Lender Lima One Capital releases their analysis of current Charlotte market trends. Charlotte hard money lending company Lima One Capital observes the increase in home sale prices and the decrease in homeowners with underwater mortgages as positive signs of economic recovery in the region. The combination of decreasing home inventory and increasing mortgage rates has lead to the increase in home prices in the Charlotte market. The steady decrease in underwater mortgages is positive for the Charlotte market as a whole and may lead to inventory increases within the next year. The ability of previously underwater borrowers to put their properties on the market will help to counteract decreasing inventory levels in Charlotte. The decrease in underwater borrowers coupled with the increase in mortgage rates has led to a steady increase in home sale prices and provides another step towards Charlotte real estate market stability.
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According to RealtyTrac findings reported by the Charlotte Observer, seriously underwater homeowners decreased from 23% to 17% between August 2012 and August 2013[1]. As homeowners begin to get into better positions to sell their property, they are emerging into a real estate market conditioned for sellers. According to RealtyTrac, home sales increased 6% since August of 2012 and home prices have increased 1% since last month, a steady month-over-month gain that has been consistent throughout the year. These trends have coupled with the continued decrease in available inventory to increase the value of the limited supply currently available on the market. The reality of rising mortgage rates is only helping to drive the increase in home sale prices. Mortgage rates increased over 1% to 4.57% in the past 6 months, spurring many homeowners to try and find a property before another increase occurs.
"Charlotte was spared from some of the worst effects of the housing market downturn but they were by no means left untouched," says founder and President of Lima One Capital John Warren. "We knew Charlotte was a market on the rise, and these trends only help to support that belief. Charlotte will continue to be a great city in which to live, to work, and to invest."
Lima One Capital believes the increase in inventory that will likely arise from homeowners continuing to gain equity in their properties will help further the stabilization of the Charlotte housing market. Initial worries surrounding consumer reaction to rising mortgage rates look to now be incorrect. A 1% increase in mortgage rates over four months has not caused a run on existing inventory or a freeze on home sales. Instead there has been a steady increase in activity that has begun to lift the market as a whole. Lima One Capital finds the decrease in underwater mortgages and the increase home sale prices as a sign of continued stability in the Charlotte real estate market.
Lima One Capital, LLC:
Lima One Capital is a hard money lending company in Atlanta, GA, Greenville, SC, and Charlotte, NC. The company specializes in providing first mortgage loans to real estate investors for the purchase and renovation of residential investment homes. Lima One Capital offers loan lengths of 13 months, 5 years and 6 years. A typical loan is closed within seven days, providing clients with the ability to capitalize on unique opportunities in the real estate market, immediately. Lima One Capital is revolutionizing the industry standard for residential real estate investment lending.
For more information on Lima One Capital, LLC, visit www.limaonecapital.com or call Justin Thompson at 404-908-0080.
[1] Roberts, "'Seriously underwater' homes in Charlotte fall to 17%"
SOURCE Lima One Capital, LLC
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