Pop Out the Champagne in Charlotte!

by : Keith Lutz

Well, owners of homes in Charlotte, North Carolina will be simply delighted to hear some optimistic and local, realty news. It may be puzzling, but it is encouraging to know that your own city is not caught up in the national down-spiral of house prices.

In fact, Charlotte, North Carolina is actually listed in the top ten of America for being a minimal risk realty market. So all you home owners who want to move around (locally), go for it - you will not be losing out!

Here's the story: a nation-wide insurance company this week published their national 'risk list' which ranks cities of America by the relative risks involved in buying or owning a home there.

The company uses this compilation which is their own analysis and intelligent guesswork to make a projection about real estate markets for the next two years. They need to have this table of cities to refer to when they have to decide whether or not to insure a home loan.

The company concerned, PMI, is a private mortgage insurance company and underwrites loans from all over the United States - hence the need for a country-wide chart.

Their chart rates a city's chances of realty decline from 1% to over 90% odds. It starts with a one per cent projection that a city's real estate prices will not de-value in the next two years and moves all the way up to as high as a ninety-four per cent chance that it will!

For those who dabble in investments in real estate, or those who like to keep a close eye on the financial situations and 'pounce' when the chips are at their lowest, you will probably want to earmark the cities who are on the falling list. This way, when prices are rock bottom, you can clean up; a bit ruthless, but also good business sense.

However, there should be no 'clean up' in Charlotte! The risky places were the cities that were mostly the high fliers in the realty boom; states like Nevada, Florida, California and Arizona are not cited by PMI as good risk areas in the next two years.

Amongst the top ten, and listed alongside Charlotte, North Carolina were a few surprises. Pittsburgh in Pennsylvania is listed, as is Kansas City, Missouri.

Some of the other cities listed alongside Charlotte in the top ten could be considered predictable. For instance, Texas has five cities listed all with the rating of less than one per cent chance of realty market decline.

A surprising city to be earmarked as a possible high risk was Las Vegas, with a rating of 89% chance of declining prices. However, with all this good news for Charlotte, we do not want to get into the negative side of things; there is cause for celebration in Charlotte - pop open the champagne!