When it comes to Charlotte NC real estate (or real estate any other city) there are very real dangers in a short term perspective or just looking at a year to year comparison. While the short term view is popular with the news media (maybe it’s just too much trouble to talk about the long range view?) it’s a limited and flawed perspective when it comes to real estate.
Buying real estate in Charlotte NC based on a short term view is like buying a house built on quicksand. When real estate market conditions shift (and they will), you’re at the mercy of the here and now. Buying a home in Charlotte NC with a long term perspective is a more solid foundation, it provides stability and the ability to stay steady in the face of short term shifts and real estate market conditions (for example if you don’t truly need to sell now, DON’T!).
Real estate values for Charlotte NC homes in the short term will go up, go down and sometimes stay the same. That’s the nature of the short term when it comes to real estate. Putting yourself at the mercy of the short term isn’t a solid foundation to successfully building wealth.
Real estate is not and has never been a vehicle for short term profits and windfalls. If “making a quick buck” or as some tv shows claim “more money in a month than you made last year” is your goal real estate is not for you. The stock market or casinos are available if the lure of a quick profit is your thing. Of course there’s just a bit more risk involved….
When buying a home in Charlotte NC, set yourself up with a solid foundation, plan to stay in any home you buy for at least 5 years, and during that time – enjoy the benefits of owning your own home! Last time I checked, a stock portfolio won’t keep you warm and dry at night or be a place to create memories with family and friends.
Looking at the short term history for real estate in Charlotte NC, you’d only see a drop in average sales price (which is a natural result of more sales in the lower price points, as in below $250,000), and significant decrease in the number of successful real estate sales in Charlotte NC for 2008.
What you’d be missing are the long term trends of real estate in Charlotte NC – the overall upward trend that includes some increases, some decreases and some years of stagnant appreciation. You’d also be missing that in many areas of Charlotte NC 2008’s average real estate sales price was higher than 1999-2006 which is actually impressive considering the sharp decrease in the number of real estate sales last year.
It’s the big picture that’s lost when focusing on the short term view. Real estate just is not short term and the real risk is treating it as a short term investment. The history of real estate in Charlotte NC goes back much farther than last year’s activity.
Related Articles: Staying Within Your Means When Buying Real Estate in Charlotte NC
Copyright©2009 by Diane McDermott, All Rights Reserved, “Dangers of a Short Term Real Estate Perspective”