Tamara's Blog

Open House - Durham, NC - Saturday, October 11, 2-4pm

Tamara Heyward (Self-Help) — Wed, 08 Oct 2008 15:31:18 -0500

OPENING THE DOOR TO NEW POSSIBILITIES. COME JOIN US THIS WEEKEND!

OPEN HOUSE AT NEW CONSTRUCTION HOME FOR SALE

1036 Kent Street
Durham, NC 27707
Lyon Park Area

Saturday, October 11, 2008
2:00pm-4:00pm

Tour this new construction home and learn about financing for 1st time buyers. Low monthly payments!

About this home:

1036 Kent Street. 3 bedrooms, 2.5 baths, 1258 Square Feet. This one and one half story bungalow style home features a large open living and dining area and a first floor master bedroom suite, and includes a total of three bedrooms, two full bathrooms, a half bath, and an L-shaped galley kitchen with a breakfast bar that opens to the dining room. The second floor offers two bedrooms and a shared full bathroom, the laundry area, and abundant easily accessible storage. The Arts and Crafts inspired exterior offers a side to side gable roof and a front shed dormer, a covered front and rear porch, and an exterior storage room.

For more information about our homes and our commitment to affordable and fair home loans, visit our website at www.self-help.org/homes-for-sale.

Directions
From Durham Freeway (147) North: take Exit 13 (Chapel Hill Street). Turn right at end of exit ramp onto West Chapel Hill Street. Take left turn at third traffic light onto Kent Street. Home is at the corner Kent and Halley.

From Durham Freeway (147) South: take Exit 13 (Chapel Hill Street). Turn right onto West Chapel Hill Street. Take left turn at second traffic light onto Kent Street and follow directions as above.

From downtown, take West Chapel Hill Street. Cross Durham Freeway and follow directions as above.

Click on the map to print directions from your location.

Option ARMs are the next wave in foreclosures?

Tamara Heyward (Self-Help) — Wed, 20 Aug 2008 11:28:29 -0500

Credit Suisse has reported that a second wave in the foreclosure crisis may be on the horizon. Option ARMs, which I've probably ranted about enough (see Wachovia Reigns In Pick-A-Pay Parts I and II), are scheduled to start resetting en masse around 2009, with the most reset volume coming in 2010-2011. A particularly onerous feature of these loans is that even if your first scheduled reset is five years, the loan can reset sooner once your negative amortization reaches a certain point.

The payment shock is expected to be much more severe for option ARMs than for subprime ARMs. You think a 10% increase in your payment was bad, wait til you see the projected 80% increase that will happen with some option ARMs. According to an article at BusinessWeek's website, the good news is that a combination of action by the lending industry and the government could help prevent some of the damage.

Tom Kelly has also posted a good article over at Inman News explaining how the negative amortization reset works.

Responsible Lenders - Self-Help Featured in Raleigh News & Observer

Tamara Heyward (Self-Help) — Mon, 18 Aug 2008 09:13:22 -0500

Self-Help was featured in a local paper, the Raleigh News & Observer, over the weekend. Our mantra when selling homes and lending money is to use common sense and always look at the big picture. It's kept us afloat so far, and hopefully will allow us to continue to do good things for the people and communities that need our services. As an organization, we usually go out of the way not to blow our own horn, but I'm glad the N&O decided to do a story on us. I think it's good for people to know that not all lenders have acted irresponsibly, and that it is possible for a lender to succeed by caring about people as much as it cares about its bottom line. As my fellow real estate agents know, the end of a long day feels much more rewarding when you know you have really helped someone achieve the dream of homeownership.

A blurb from the article:

"One year into the credit crunch and mortgage meltdown, a Durham financial institution that banks on neighborhoods at risk is still doing business as usual.

How so?

Common sense, said Martin Eakes, co-founder and CEO of Self-Help, a Main Street nonprofit that has, according to its Web site, provided $5.24 billion to 60,130 homeowners, small businesses and nonprofit enterprises since it started the practice in 1984.

And it's still buying, rebuilding, selling and lending for and to just the sort of people in just the sort of places who are caught up in the sub-prime lending mess. Yet, with much of the country's banking, developing and real-estate industry in crisis, "Financially, we're doing fine," Eakes said in an interview this week.

Not that he doesn't feel depressed and keep his fingers crossed.

"So far, our borrowers are doing pretty well, but I'm anxious for them a little bit," he said; but, "I'm depressed for those communities we have helped to build up." "

See the full article at http://www.newsobserver.com/978/story/1180193.html.

Durham NC Sustainable Design House - New Photos

Tamara Heyward (Self-Help) — Mon, 11 Aug 2008 14:10:57 -0500

We toured our sustainable design home at 1020 Kent Street a few days ago. The more visible sustainable and energy efficient elements are now being installed as the home is completed. We were there as the light fixtures went up and the carpet went down. Here are some photos from our visit:

Here's a view through the back door into the house. Bedrooms to the left, kitchen and living room to the right. You can see through to the front door. The concrete stained floors look great, although they are covered with paper to protect them as construction is completed.

The bedrooms all feature Flor Fedora carpet tiles. The tiles are partially made of recycled materials, can be easily arranged into alternate patterns, are low VOC, and don't trap dirt like traditional carpets. Here in the master bedroom, we did taupe tiles with a brick colored border. The 2 additional bedrooms are solid taupe.

The light fixtures have a modern feel and are equipped with energy saving compact florescent bulbs.

The back porch will be a great place for cookouts and hanging out. It opens to a cleared area and a brick planter.

The driveway form is complete and ready for concrete. We want to preserve as much permeable surface as possible, to prevent drainage and erosion issues. Most of the driveway will be two concrete strips with a strip of grass between. At the top and bottom of the driveway are concrete crosswalks, allowing access to the front and rear doors.

1020 Kent Street, Durham, NC - For Sale $120,000 - http://www.self-help.org/homes-for-sale

For Sale in Durham, NC - North Carolina Sustainable Building Competition Winner

Tamara Heyward (Self-Help) — Thu, 31 Jul 2008 14:19:32 -0500

We are nearing completion of our sustainable design house at 1020 Kent Street in Durham, NC. This home has really challenged us to think about how we create energy efficient, affordable homes. Aside from the fact that we've come out with a great house, we've also learned some things that we will be carrying forward into our future new construction.

I've posted some photos below, along with a list of sustainable design features. The interior is starting to take shape, and I hope to have lots of pictures soon. I think the interior will turn our to be very modern and stylish, in addition to being energy efficient. The cabinets and countertops went into the kitchen this week, and we'll also be putting in glass shelves for the kitchen. The kitchen will be a real centerpiece when combined with the stained concrete flooring in the living areas and the open design of the home.

Here's a short list of our sustainable design features:

Location on a 0.11 acre infill lot in an urban neighborhood, with existing infrastructure and utilities. The location provides easy access to public transit, shops and services, and recreational and employment opportunities.
A space-efficient 1180 square foot plan with 3 bedrooms, 2 baths and an open layout.
Exterior walls that use 2 x 6 framing insulated with open cell sprayed foam insulation. The sprayed foam insulation will also be used in the ceiling, resulting in an air tight and highly insulated building envelope.
ENERGY STAR qualified shingles that reflect sunlight, in order to reduce the cooling load.
Passive solar design elements, including numerous south-facing windows, a generous roof overhang and a vegetated shade screen.
ENERGY STAR certified 7/8" thick insulated LoE2 glass windows filled with argon gas.
Extremely energy efficient 15.0 SEER-rated heat pump system.
ENERGY STAR certified dishwasher, refrigerator, range hood, bathroom exhaust fans, and ceiling fans. Also, fluorescent and compact fluorescent bulbs will be featured in many rooms.
Water conserving features such as low-flow faucets, drought-resistant landscaping, and a 55-gallon rain barrel.
Vanguard MANABLOC manifold plumbing system to provide water quickly and efficiently, reducing water use and water heating costs.
Indoor air quality improvements through the use of zero volatile organic compound (VOC) interior paint, low VOC exterior paint, well-planned moisture management and fresh air exchange, and a carbon monoxide detector.
Stained concrete flooring in the main living spaces and tile flooring in the bathrooms for durability and improved indoor air quality.
Universal design elements such as a wheelchair accessible entrance ramp and ADA compliant doorways, hallways and rooms.
Recycling center built into the kitchen.
Salvaged, reclaimed brick used to build garden planter, porch border and steps.
Certification that the home meets or exceeds ENERGY STAR standards for energy efficiency, and SystemVision standards for comfort, durability, energy efficiency, health, and safety.
A SystemVision guarantee that the heating and cooling portion of the homeowner's monthly utility bills will not exceed approximately $30 per month.

Besides the sustainability factor, the other great thing about this house is that it's priced at $120,000. We can also recommend state and city loan programs that significantly reduce the monthly mortgage payment.

Here are some pictures of the house. These are a few weeks old - the builders have been working so hard on site that it's a challenge to get in and take new pictures. That's a good thing, as they plan to finish the home in the next few weeks.

Photos from Goldsboro, NC Open House and Ribbon Cutting

Tamara Heyward (Self-Help) — Wed, 30 Jul 2008 09:41:43 -0500

Here are some photos from the ribbon cutting and open house we had at our new construction homes in downtown Goldsboro. At the ribbon cutting, we celebrated the sale of our first home in Goldsboro. We had an overflow crowd - it has been a long time since new homes have been built downtown. Add in the fact that they are affordable for first time homebuyers, have incorporated historic exterior details, and are energy efficient, and I think we have the beginnings of something special.

Everyone is very excited - the city and county government, Seymour Johnson Air Force Base, local business owners, local colleges, and other community developers all showed up to support this. Our new homeowner cut the ribbon with the mayor, we blessed the house, and had a great party to celebrate!

Tax Credit for 1st Time Homebuyers

Tamara Heyward (Self-Help) — Wed, 30 Jul 2008 08:59:43 -0500

It looks like a $7500 tax credit for first time homebuyers will be a part of the housing stimulus package being signed by President Bush today. Please pass this along to any first time homebuyers you work with who are closing on a home between April 9, 2008 and July 1, 2009.

They can take a $7500 tax credit on their 2008 or 2009 tax return. Tax credits are more fun than deductions because the credit is a dollar for dollar reduction in tax liability – ie if you owe less than $7500 in taxes, the government will erase the tax liability and send you a check for the difference. If you owe more than $7500, the credit will reduce your tax liability by the credit amount.

One note – this is basically a loan from the government. They want people to have the money now, but it will have to be repaid starting in 2010 (at a rate of $500 per year, or in full when the house is sold – no interest). There are also income requirements. You can see complete info here:

http://www.nbnnews.com/NBN/issues/2008-07-28/Front%2BPage/index.html

Goldsboro, NC - Mid-week Open House - New Construction - Great Opportunity for First Time Homebuyers

Tamara Heyward (Self-Help) — Mon, 21 Jul 2008 09:47:14 -0500

Join Us For An Open House
in Historic Downtown Goldsboro

Wednesday, July 23
4-6pm
404 S. John Street
Light Refreshments Served

New Construction Priced From $94,000

Special Financing - up to $35,000 towards purchase of home. The City of Goldsboro wand the state of North Carolina want to help you purchase a home!

Hardiplank Siding

Energy Efficient Construction

3 bedrooms, 2+ baths

Appliances Included

Historic District - beautiful construction details

Please join us as we celebrate the completion of three new homes in historic downtown Goldsboro. These homes are beautifully constructed and very affordable. Hardiplank siding, energy efficient construction, 3 bedroom/2 baths, appliances included, and more - all starting at $94,000!

We have partnered with the city of Goldsboro and the state of North Carolina to provide special financing for first time homebuyers - up to $35,000 towards the purchase of the home, making mortgage payments truly affordable.

We look forward to seeing you and your clients at this open house to learn more about this opportunity. These homes are available to owner occupant, first time homebuyers. Please contact Tamara Heyward at 919-956-4423 for more information.

These Homes Will be Available To Tour at the Open House

The Bentley
1258 sq. ft.
$102,000

This one and one half story bungalow style home of 1258 square feet features a large open living and dining area and a first floor master bedroom suite, and includes a total of three bedrooms, two full bathrooms, and an L-shaped galley kitchen with a

breakfast bar that opens to the dining room. The second floor offers two bedrooms and a shared full bathroom, the laundry area, and abundant easily accessible storage. The Arts and Crafts inspired exterior offers a side to side gable roof and a front shed dormer, a covered front and rear porch, and an exterior storage room.

The Juniper
1096 sq. ft.
$94,000

This single story bungalow style house of 1096 square feet features a large living room and separate dining room as well as a private master bedroom suite. This house includes a total of three bedrooms, two full bathrooms, a laundry area and U-shaped kitchen with a breakfast bar that opens to the dining room. The Craftsman inspired exterior offers a double gabled roof, and a wrap-around front porch with a side gable.

The Monique
1190 sq. ft.
$99,000

SOLD! This two story Queen Anne style house of 1190 square feet features a spacious living and dining room area and a private master bedroom suite with a walk-in closet. This open floor plan includes a total of three bedrooms, two full bathrooms and a powder room, a laundry room and U-shaped kitchen with a breakfast bar and opens to the dining room. The historically inspired exterior offers a main hip roof with a shingle accented front gable, a covered front and rear porch, and exterior storage room.

Open House - Affordable, Energy Efficient Home from Durham Community Land Trustees

Tamara Heyward (Self-Help) — Tue, 24 Jun 2008 13:44:06 -0500

www.1513ChapelHillRoad.com

1513 Chapel Hill Road
Durham, NC 27701
Lakewood Area
$85,000

Saturday, June 28
12pm-4pm

If you are a first time homebuyer on a budget, or are working with first time homebuyers you will want to attend this open house. If you think FHA financing is your only option, come learn about our preferred financing options!

This 3 bed, 2 bath home features new carpet and paint throughout. The bedrooms are spacious and a large living area provides room for the family. The location is near upcoming new construction that will enhance the neighborhood. Live near Duke University and downtown Durham.

A developer representative will be on hand to answer questions about the developer's affordable construction, upcoming development on this street, and financing options.

Purchase of this home is available to first time, owner occupant homebuyers only. No investors, please.

See more information at www.1513ChapelHillRoad.com

About The Developer
Building Homes...Building Community...Building Trust. The Durham Community Land Trustees is a non-profit, community based organization committed to providing permanently affordable housing... and promoting community revitalization in the neighborhoods in which it operates. www.dclt.org

Durham, NC Event Calendar June 11, 2008

Tamara Heyward (Self-Help) — Wed, 11 Jun 2008 11:36:26 -0500

This week, the American Dance Festival is in full swing as it celebrates its 75th anniversary. There are also several events for Father's Day, including an interesting looking luau at The Melting Pot.

See all of this week's events

Use the searchable event calendar

Letters From Vermont and America

Tamara Heyward (Self-Help) — Fri, 06 Jun 2008 19:19:57 -0500

I just ran across this while surfing the 'net. Senator Bernie Sanders from Vermont sent out an email to his constituents asking them what was going on in their lives economically. He had read all of the media reports about the unemployment rate, about how many people have lost health insurance, about how incomes have declined. But as many of us know, you can't always count on the media to get the story right. So he decided to go to the people and ask them. He says he expected a few responses; he got over 600.

He compiled some of the letters into a booklet and distributed a copy to every member of Congress. You can download the booklet by clicking the link:

The Collapse of the Middle Class: Letters from Vermont and America

Senator Sanders pulled a line from each letter as a title:

"We have at times had to choose between baby food and heating fuel."

"By February we ran out of wood and I burned my mother's dining room furniture."

"Not spending those ten hours at home with my husband and son makes a big difference."

"I want to drop everything I am doing and go visit him."

"We also only eat two meals a day to conserve."

"My husband and I are very nervous about what will happen to us when we are old."

"The pennies have all but dried up....Today I am sad, broken, and very discouraged."

"I don't go to church many Sundays, because the gasoline is too expensive to drive there."

"At the rate we are going we will be destitute in just a few years."

"I am just tired....I work 12 to 14 hours daily and it just doesn't help."

"Now we find that instead of a feeling of comfort, we have a feeling of dread."

"Some nights we eat cereal and toast for dinner because that's all I have."

"Insurance costs continue to rise causing some to forgo insurance to pay for groceries."

"Dentistry is expensive and people are opting not to come to the dentist."

"How devastating it has been for folks who travel great distances to get to their cancer treatment."

"I feel as though I am between a rock and a hard place no matter how hard I try."

"I have been forced to go back to work."

"We would like to not have to worry about where our next meal will come from."

"My husband and I followed all the rules.... Slowly, though, we have sunk back to the 'poor' days."

"It costs me so much money in gas that my wife and I live on $6 per day to eat."

"How much more of a hit can people take? The future looks extremely bleak to me."

"I am now living out of my car."

"Our life style has drastically changed in the past 12 months."

"My mortgage is behind, we are at risk for foreclosure, and I can't keep up with my car payments."

"We are barely staying afloat."

"I wonder some times if we should try to follow our dreams - decide to have children?"

"People say, ‘Cut back.' "

"Does anybody have a solution? Does anybody in Washington care?"

Reading these letters reminds me how fortunate I truly am. While we are more conscientious about gas consumption, and might eat out a little less than we used to, we do not have to make the decisions people talk about in these letters.

Here's hoping that our economy gets back to basics: jobs that pay a living wage, tight knit and supportive families and communities, and of course decent and affordable homes for all!

Barrington Village - Raleigh, NC

Tamara Heyward (Self-Help) — Fri, 06 Jun 2008 10:29:27 -0500

The Wall Street Journal Online has a piece today about Raleigh's Barrington Village and its developer, Builders of Hope. This neighborhood is one of the smartest uses of human and social capital and environmental responsibility I've ever seen. The idea is beautiful in its simplicity:

Instead of knocking down old homes to make way for new ones, homeowners donate the homes to Builders of Hope.
Builders of Hope moves the house free of charge.
The owner keeps a demolished home out of the landfill, gets a tax deduction, and avoids the evil eye of neighbors for tearing down the home.
Builders of Hope relocates the house to its development, rehabs it, makes it energy efficient, and sells it to someone that needs affordable housing.
Along the way, they employ homeless workers in the construction, giving them experience and skills they can then use to find other jobs.

Everybody gives a little, everybody gets a little - a beautiful way to protect our environment, housing stock, and build human capital.

June is National Homeownership Month

Tamara Heyward (Self-Help) — Tue, 03 Jun 2008 14:36:49 -0500

This month, we celebrate National Homeownership Month. The celebration is meaningful for what it says not only about our ambition in creating more access to the American dream of homeownership, but also for what it means when our ambitions fall short.

President Bush designated June as National Homeownership Month in 2002, with the goal of adding 5.5 million minority homeowners by the end of the decade. Achieving this goal would have a major effect on our nation. Historically, homeownership has been step one in the creation of wealth for Americans, leading to better economic prospects, access to more financial resources, and the ability to pass that wealth on to future generations.

This year, National Homeownership Month is especially poignant. 2008 marks the 40^th anniversary of the 1968 Fair Housing Act. A centerpiece of the Act is the prevention of discrimination based on race, color, religion, sex, national origin, familial status (families with children), and disability. Over the past six years, opportunities for minorities to become homeowners have flourished. New loan programs meant greater access to financing for more people, which meant access to homes. This represented the best in our quest for fair housing and for the goal of increasing homeownership.

As we now know, it also represented the worst. Minorities are expected to make up a disproportionate percentage of the foreclosures sweeping the nation. Entire neighborhoods (and in some cases, entire cities) have lost a generation or more of wealth created through homeownership. In the push to create homeowners on paper, we neglected to provide the underpinnings that would have made them homeowners in fact - i.e., staying a home long enough to put down roots, build equity, and accumulate wealth.

Without proper financial education for all Americans, regulation of lenders, and an economic system built on something more stable than consumer spending, the promises of homeownership will not pay off as well as they should. A recent article in the News and Observer noted that customers often did not understand how to prioritize their bills. They faced disconnection of their electricity, believing that the cable bill had to be paid first, since the cable company's grace period was shorter. Local utility companies have started programs to help customers understand how to pay bills in order of importance, explaining to them that if they don't have electricity, they won't have cable, whether they paid the cable bill or not.

As is fitting, the theme of National Homeownership Month 2008 is "Back to Basics". From the HUD website:

"This year's theme - "Back to Basics" - is designed to underscore the importance of having strong, common-sense fundamentals as a way to maintain a sustainable housing market. Many of those basics (verification of income, ability to repay) were ignored in the lead-up to the housing bubble. The Department will focus on helping families learn what the federal government is doing to help struggling homeowners; how to protect themselves against predatory lending; to better understand what goes into owning a home; and how to own a home they can afford. "

Couldn't have said it better myself. Let's all live up to our potential and make homeownership the dream we know it can be.

June is National Homeownership Month

Tamara Heyward (Self-Help) — Tue, 03 Jun 2008 14:32:24 -0500

As is fitting, the theme of National Homeownership Month 2008 is "Back to Basics". From the HUD website:

Couldn't have said it better myself. Let's all live up to our potential and make homeownership the dream we know it can be.

HUGE Price Reduction on Great North Durham Home

Tamara Heyward (Self-Help) — Thu, 29 May 2008 16:02:04 -0500

We've just reduced the price on this home. The seller understands the market and is ready to sell - they have reduced the home from the original price of $232,500 to $195,000 - a huge value for a spacious home with lots of space.

A few reasons why this is a great home:

Quick commute to the Durham Regional Hospital area. You can also get to Duke University/Medical Center and major employers in downtown Durham in about 20 minutes.
Brand new, neutral colored paint and flooring throughout.
Kitchen update - the kitchen has new countertops and flooring. The cabinets are sturdy and good quality - they have been refinished and look great!
Extra large two car garage fits two cars comfortably and still leaves room for storage.
First floor layout works well for family and entertaining. A dining area off the kitchen is great for formal and casual meals. The family room is huge and opens onto a screened deck. The local climate allows for three season use of the deck - this might become your favorite room in the house!
Vinyl siding and partially wooded lot - enjoy a large house and lot with minimal regular maintenance.

See more information and photos at www.158LinTilley.com.

Durham, NC Public Schools - May Video Newsletter

Tamara Heyward (Self-Help) — Wed, 28 May 2008 15:12:29 -0500

Durham Public Schools has just published the May edition of their Parents Video Newsletter. On tap this month - graduation schedules, Summer Reading Club and other summer camps, and score reporting for end of grade reading tests.

See the video here.

New Listing - Research Triangle Park townhome, Durham, NC

Tamara Heyward (Self-Help) — Sat, 24 May 2008 16:42:56 -0500

We just listed this great RTP townhome - if you work in RTP and want a short commute, this home is worth a look.

A few details: Beautiful end unit home with plenty of upgrades. All appliances are included - all kitchen appliances, plus washer and dryer. Upgrades include kitchen island, luxury master bath with garden tub and dual sinks, vaulted master bedroom ceiling, trimmed windows, columns, railing at top of stairs, berber carpet, fireplace with marble surround. This home backs to a common area, offering extra privacy and less noise. Close to all freeways. Pool table and bar in fourth bedroom/bonus room negotiable.
See more details at http://www.302hiddensprings.com/ or contact the listing agent, Bruce Hill.

More photos:

Location, Location, Location...Again

Tamara Heyward (Self-Help) — Thu, 22 May 2008 10:33:49 -0500

Two articles at the Wall Street Journal Online illustrate, once again, why the three rules of real estate are location, location, location. Holman W. Jenkins, Jr. writes an interesting op-ed on why the proposed mortgage bailout working its way through Congress will not actually solve the foreclosure problem.

Mr. Jenkins theorizes that the foreclosure crisis was created by speculation on the "drive ‘til you qualify" method of home buying. Most of the foreclosures in this country are concentrated in just a few areas, with the biggest grouping running from Sacramento to Las Vegas and Phoenix. His idea is that speculators bought up homes in developments on current or planned major commuter routes. As prices closer to urban centers continued to rise, buyers would continue to move further from these centers in search of affordable real estate, thereby driving up prices in these exurbs and providing a tidy return on investment.

A lot of these developments are oceans of cookie cutter development, with little recreation, infrastructure, lifestyle, or sense of place. These days, even bargain hunters aren't looking to buy something with no inherent value. An investor that knows their property has very little value isn't going to jump through hoops to continue paying the lender, even if they get a better deal on the mortgage.

Should Mr. Jenkins' prognostication hold true, we'll have a bigger problem on our hands. What in the world do you do with thousands of deserted and deteriorating homes sitting out in the middle of nowhere?

On the other end of the spectrum, Jeff D. Opdyke reports that major downtowns are weathering the storm much better. He offers a quick dissection of markets in Chicago, New York, Boston, San Francisco, and Los Angeles. The overall assessment of the markets? Slower than a couple of years ago, sure, but not abandoned in a field. High end real estate continues to rise ($10 million for a San Francisco condo, anyone?). The very best downtown locations are strong, but if you're on the wrong street, or worse yet, more than a few steps from downtown in a surrounding neighborhood, it's touch and go. Again, not perfect, but not mired in foreclosures either.

Both of these articles got me thinking about how the market is playing out in Durham, NC right now. While we don't have anyone commuting for hours just to afford a home, Durham has become even more about location recently when it comes to home sales. Our city has morphed over the past couple of decades into a new geographic identity. Rather than having one central geographic point where commerce, entertainment, and community all mesh, we have several. The downtown/Duke corridor, the Southpoint area, and RTP all feed different parts of our collective soul, and each has developed a sense of place that has supported home values.

The neighborhoods around Duke and downtown (especially those providing equal access to both) are continuing to hold value. But I also draw a conclusion from Mr. Opdyke's piece - there's downtown, and then there's downtown. The west side of downtown, encompassing West Village and Brightleaf, and extending to Duke's East Campus, is our version of downtown Chicago's Gold Coast. A great example of how the real estate market has developed is the Bullington Warehouse condominium on N. Duke Street. It was developed in the 1980's, before construction prices went through the roof. It's no frills construction has enjoyed gradual upfit over time by condo owners, meaning that a pretty nice condo can still be had for under $300,000 - and the seller can actually turn a profit. You can eat, drink, and be merry to your heart's content just by crossing the street. Or marvel at an office of the largest advertising firm in the world. Or walk by the building holding one of the largest Porsche collections in the country. Bullington Warehouse condos are selling fast and for at or near asking price. West Village is almost always completely leased up at higher than market rents. In short, this is downtown Durham's location.

A twin corridor is taking shape on the east side of downtown, traveling roughly along Mangum Street. As Kevin Davis reports on Bull City Rising, the area is taking shape, albeit at a slower pace than was expected a couple of years ago. It appears to have the makings of a location, with some great new restaurants, the opening of the Durham Performing Arts Center, and planned residential development. If the Wall Street Journal musings hold, it will it need to mature naturally over the years as the Brightleaf area has done, developing its roots and sense of place, and proving its value to the community. Forcing development to fill some ethereal "need" won't do it (sure, we can sell you an affordable condo - you know, people in Manhattan would kill to get their hands on 600 square feet for $200,000!).

The second market driver in Durham is the Southpoint area. Since opening in the early part of the decade, The Streets at Southpoint mall has served as a hub for residential and commercial development in the southern part of the county. This year, this area has been one of the two most active real estate markets in Durham, according to the Triangle Multiple Listing Service. While downtown has grown and evolved over many years into its current incarnation, Southpoint was a seemingly overnight sensation based on a different theory of location. The mall was built in a prime but underutilized location - it sits just off a major Triangle thoroughfare, I-40. This highway and its offshoots will eventually connect you to almost everywhere in the Triangle and points beyond.

As a marketing assistant for Belk during Southpoint's grand opening, I got the full tour and story. Apparently, the developers had looked at downtown Durham and its history. They knew that downtown had once been home to the best department stores and restaurants in town, with crowds filling the streets for holiday shopping and nights on the town. They wanted to bring that feeling to the Southpoint area, and designed a retail destination that incorporated some of the feel and look of Durham's tobacco town heritage. Their idea created a location in southern Durham, one not quite matched by the more generic Triangle Town Center (music will ensue if you click this link) built around the same time in Raleigh. TTC has all the stores, but not the sense of place that Southpoint has.

The up and coming corridor is the Hwy 70/98 area leading into Research Triangle Park. RTP is a major driver of employment for the entire Triangle. Its zoning has always made residential development (and public transportation) there a non-starter. As commuting to RTP from Wake County becomes more onerous, people are looking at the Durham County side of the line, and developers have taken notice. Once Brier Creek settled in, bringing restaurants, entertainment, and grocery stores, the sense of place was developed for Durham to RTP commuters.

This corridor is the other most active real estate market in Durham this year. The east part of Durham bordering Wake County is anticipated to be the fastest growing Durham submarket over the next decade.

So here in Durham we have a truly diverse, multi-node city. One hub founded on history. One founded on history removed to a new location (and with The Cheesecake Factory!). One founded on the draw of jobs and shopping in another county - go figure.

Remodelling to Sell? Keep It Simple

Tamara Heyward (Self-Help) — Fri, 16 May 2008 11:47:23 -0500

In today's real estate market, home sellers must be smart and economical when preparing their homes for sale. Since many buyers have visited new home communities during their home search, they will compare older homes to the perfect, beautifully staged model homes in new home communities. Sellers must put the best face on their homes to compare - but with home prices leveling off or declining nationwide, a smaller renovation budget may be necessary.

Here are some tips for making your home desirable to buyers without breaking the bank.

Curb Appeal Is a Must
Buyers form an instant impression of your home before they ever get out of the car. Expensive landscaping isn't necessary to make a good first impression. Rather, make sure that your lawn and house appear neat and clean from the curb.

For the lawn, keep the grass cut and edged, especially around any walkways and driveways. Trim any shrubs. If you have flowerbeds, keep them filled with seasonal flowers and plantings, and use mulch to complete the look. Freshen up your driveway and walkways. For concrete, a good power washing works wonders. For gravel, put down a new layer. To complete the look, a new mailbox and freshly painted mailbox post at the curb is an added touch that shows buyers you have paid attention to the details.

For the house itself, newly painted trim will make your home stand out. Take a good look at the front door - if it needs a new coat of paint and a new lockset, do it. If buyers reach your door and find dust, dirt, and a sticky lock, it's like saying to them, "We really don't want you to come in." If the home needs new siding, paint, or power washing, you will want to do these as well. If your windows are on their last legs, and you can afford it, you may even want to replace them. Buyers are now looking more closely at the basics in a home, and are willing to pay for items like new windows as opposed to cosmetic upgrades.

Keep the Interior Clean, Simple, and Modern
Kitchens and baths still sell homes. In older homes, these rooms may not be as big as in new construction. Older homes can compete by keeping these rooms as light and bright as possible. New cabinetry may not be necessary. If you are on a budget, you'll have to sacrifice quality to get new ones, and buyers are likely to notice. It may make more sense to refinish and paint the existing cabinets in these rooms. Light colors are popular - white or a light yellow or green will work in most kitchens. If countertops and flooring are old and stained, you'll need to refinish or replace them.

For the rest of the house, good floors and paint rule. Your carpet and hardwoods may only need to be cleaned and refinished. If they need to be replaced, it is probably worth the money. Fresh paint on the walls will also give your home an instant makeover. New switch plates and light fixtures can usually be found inexpensively, and will make the home look more modern and updated.

A white glove cleaning and thorough decluttering is the finishing touch to the inside of the home. Hire a professional cleaner to clean the home, including windows and light fixtures. Remove any items you do not use everyday, and anything you can do without for a few months. Rent a storage unit if you need space off-site for your belongings.

In the interior of the home, it may be necessary to hire professionals to do the work. Always think "model home". Buyers will spot the signs of amateur work and will deduct from the price of the home. Painters are especially important. Make sure they do a thorough job and pay attention to detail; when they finish, you shouldn't see paint dripped on doorknobs or floors, or poor trim work.

Follow these tips and you'll be ready to take on the competition and sell your home.

First Quarter Market Trends - Durham County, NC

Tamara Heyward (Self-Help) — Tue, 06 May 2008 15:03:12 -0500

TMLS has released the market trends report for the first quarter of 2008. Here are the highlights for Durham County:

Job growth continues, although it has slowed throughout the Triangle. From Feb. '06 through Feb. '07, job growth was 3.1%. From Feb. '07 through Feb. '08, the growth fell to 1.2%. This slowdown tells the tale of the Triangle housing market better than just about any other measure. Our real estate market has traditionally been fueled by people relocating to the area for work or school. When there are fewer jobs being created, there are fewer reasons for people to come here.
Inventory is up, sale prices are down. Inventory has increased by 6%, and sale prices are down 5%. The average sale price in the first quarter was $194,400.
Property is still appreciating. This is probably the biggest bright spot. While many areas of the country are seeing property values collapse, we are still seeing overall appreciation. The average appreciation for resale housing in Durham County was 4.22%. Appreciation can vary widely by neighborhood. Based on MLS data, Duke Park saw the best run, with an average per year appreciation of 13.72%. Duke Forest and Hope Valley rounded out the top three. At the bottom of the positive scale was Eno Trace, with .85% average appreciation. The MLS list was comprised of about 30 neighborhoods. There are obviously more neighborhoods than that in Durham, and I'm very curious about the rest of the list - are we looking at negative appreciation in some neighborhoods not listed in the report?
Pending sales are off. There is now lots to choose from, but buyers are not taking the plunge. Pending sales are off 22%, and closed sales are down 21%. Durham County fared slightly better than the rest of the Triangle, where pending sales and closed sales were down 27% and 24%, respectively.
The right homes are selling. Combined with the appreciation we're seeing, the homes that sell are selling faster than they were last year - 87 days on the market compared with 94 days for the same period last year.

Top 10 Selling Developments

Woodcroft
Hope Valley Farms
Grove Park
Keystone Crossing
Parkwood
Duke Forest
Grandale
Hope Valley
Stratford Lakes
American Village

Top Appreciating Subdivisions

Duke Park
Duke Forest
Hope Valley
Finley Forest
Falconbridge
Downing Creek
Woodlake
Chancellors Ridge
Parkwood
Wyndcross

907 Exum Street, Durham, NC

Tamara Heyward (Self-Help) — Tue, 06 May 2008 10:10:36 -0500

Seed and sod are down at 907 Exum, a sure sign that construction is winding up. This is the newest home from the Durham Community Land Trustees, and continues their mission of building affordable, energy efficient homes that honor the architectural heritage of southwest central Durham. For more info about DCLT, check out my previous post. This bungalow is a spot built home in the Burch Avenue neighborhood. Three bedrooms, two baths, living room, dining room, and kitchen, and an easy walk to Duke and downtown.

With a list price of $104,000, this home is a great opportunity for first time homebuyers. Buyers will need to be first timers and owner occupants (sorry, no investors).

This home has energy efficient design, and was built to specific efficiency standards under the SystemVision initiative from Advanced Energy. SystemVision homes are built using rigorous quality standards; inspectors are active from the outset with input on the design of the home, and inspecting the construction site to ensure that standards are met every step of the way. Advanced Energy guarantees the results of their process - for the first two years of ownership, they guarantee that heating and cooling bills for the home won't exceed a certain amount.
For even more info, check out the home website at http://www.907exum.com/.

More pics:

Raleigh, NC REO/Foreclosure

Tamara Heyward (Self-Help) — Tue, 06 May 2008 10:04:22 -0500

New Listing - North Raleigh Split Level

We just listed this home at 5708 Tully Court in Raleigh. It's a late 1960's split level - 1875 square feet, 4 bedrooms, 2.5 baths. Living room, dining room, and kitchen on the main level; 3 bedrooms on the upper level; and fourth bedroom and family room (with fireplace) on the lower level. It's just off Six Forks Road in north Raleigh, equidistant to I-440 and I-540 - the area has a good stock of this split level design in this age range, which makes for some nice, convenient neighborhoods with fairly affordable homes. This one is an REO, so it's being sold as-is and will need some work. See more details and pics at 5708Tully.ISellDurhamHomes.com.

Durham Community Land Trustees

Tamara Heyward (Self-Help) — Tue, 06 May 2008 09:54:49 -0500

Durham Community Land Trustees

One of our favorite clients is the Durham Community Land Trustees (DCLT). For the past twenty years, they have been building homes that are affordable to the majority of Durham residents. That's no small feat, given that their target area is neighborhoods near Duke University, where real estate prices have increased faster than prices in other areas of Durham. I think it's worth it to revisit why the land trust model has a place in our market, especially given the number of first time home buyers that are now losing their homes in this tough real estate climate.

DCLT's goal is to provide permanently affordable home buying opportunities to first time home buyers. However, their approach encompasses more than just providing a home. They educate and support buyers, and eventually provide a path for buyers to move up to a market price home.

DCLT home buyers attend home buyer education courses before purchasing their home. These courses prepare buyers, letting them know what to expect from their real estate agent, lender, and others involved in the process. They also receive opportunities to work with counselors to create a monthly budget, handle credit issues, and understand how much they can afford to spend on a home.

Perhaps the most important part of the DCLT mission is protecting buyers from predatory loans. Over the past year, we have watched the dream of homeownership turn into a nightmare for many first time home buyers. Because they didn't have the education and support they needed when buying a home, they ended up with adjustable rate mortgages, and other loans with high interest rates and fees. DCLT works closely with a group of preferred lenders, and even has a loan pool offered through the state of North Carolina. These loans are low interest (and in some cases no interest), and are designed to ensure that buyers are getting a leg up with an affordable mortgage. Buyers have the peace of mind that comes with a quality home, and a chance to save money that might have otherwise gone to pay a larger mortgage.

DCLT has also committed to energy efficient and environmentally friendly building practices. Many buyers are never told about the hidden costs of homeownership, such as higher utility bills and home maintenance costs. These items can add hundreds of dollars to the cost of owning a home over the course of a year. DCLT uses low maintenance materials and energy efficient standards wherever possible and even offers an energy use guarantee - heating and cooling bills can be as low as $26 a month. Upgraded insulation, solar water heaters, and semi-permeable driveway designs are all examples of methods used by DCLT to create homes that are good for homeowners and good for the environment.

While DCLT provides opportunities for home buyers, it also wants to provide stability for the neighborhood. More homeowners means better looking and better maintained homes, more involvement in neighborhood associations, and more stable home values. Like many other community builders, DCLT asks buyers to give something back in return for the chance to buy a quality home at a low price. To keep their home affordable, buyers agree to pass along some of their equity to the next buyer, keeping the home affordable over time.

As we recover from the hangover of the easy money mortgage market, it's a good idea to get back to the basics. The dream of homeownership is founded on the security of having a place for family and a chance to improve your finances by saving money. Organizations like Durham Community Land Trustees offer buyers the chance to take part in this dream.

Take a look at current DCLT homes for sale:
http://www.907exum.com/
http://www.1513chapelhillroad.com/
Coming Soon - Cameron Place - a neighborhood of new, energy efficient homes near Duke University

Pick-A-Pay Part II

Tamara Heyward (Self-Help) — Tue, 15 Apr 2008 11:50:37 -0500

And the other shoe drops. Wachovia has just reported a $393 million first quarter loss, and plans to cut 500 jobs. Much of the loss is attributed to Wachovia's expansion into the mortgage industry, just as this sector was about to collapse. I reported on Wachovia's ill-timed acquisition of Golden West Financial and its flagship Pick-A-Payment loan product over the weekend.
The Pick-A-Pay loans were portfolio loans for Wachovia, meaning that the lender kept these loans in house instead of selling them to outside investors. Wachovia received the benefit of the higher interest rates on these loans, but also had all of the risk if borrowers defaulted. In their earnings report, Wachovia noted that the number of mortgage defaults on their loans nearly doubled in the first quarter. With the information I have, I can't say what percentage of these defaults were Pick-A-Pay loans. It is noteworthy, however, that Wachovia is experiencing defaults with their Golden West portfolio, which is heavily invested in hard hit West Coast markets. The losses are enough that Wachovia is curtailing or eliminating the Pick-A-Pay loan in several of these markets.
The Wachovia announcement looks to be the first in a long line of disappointing earnings reports for the nation's largest lenders. Wachovia is trying pull out of this as quickly as possible by issuing stock to raise capital. Let's hope that the major lenders can devise a strategy to keep the credit market afloat while extracting themselves from their mortgage problems.

Wachovia Reigns in Pick-A-Pay?

Tamara Heyward (Self-Help) — Sat, 12 Apr 2008 08:24:48 -0500

When I saw the television ad for Wachovia's Pick-a-Payment mortgage, my jaw hit the floor. I saw the commercial at least a month ago, but couldn't formulate a coherent blog entry until now - I was that irritated.
In the midst of the fallout over shoddy lending practices, Wachovia chose to push THIS? For those who have never encountered a pick-a-pay loan, let me explain. The real name for this loan is an option ARM. Each month, the borrower gets four payment options:

1) Pay the fully amortizing principal and interest payment (basically as if you were paying on a 30 year fixed mortgage).
2) Pay a set amount higher than the amount in 1), which pays off the loan in 15 years.
3) Make an interest only payment.
4) Make a minimum payment that doesn't cover principal or interest.

Numbers 1) and 2) are beautiful things. Numbers 3) and 4) can ruin your life. Get into the habit of not making a fully amortizing payment, and your loan balance will actually go up. Combine this with the fact that for the privilege of having a ballooning loan balance, Wachovia will actually charge you a HIGHER interest rate on the loan.

Now, for the right borrower, these loans can be a useful financial tool. By right borrower, I mean someone who gets the concept of negative amortization, and uses numbers 3) and 4) as a strategy in managing their investment portfolio. For example, if a borrower wants to pump some additional funds into their stock portfolio, or they have an investment property that has a vacancy and want to use the extra money for the mortgage payment on that property. Not that they can't get the money elsewhere - they make a CHOICE to get it from this source.

But that's not who Wachovia is aiming this product at. They are targeting people that need to rob Peter to pay Paul. People that need the extra money to pay the minimum balance on their credit card bill. People that need the extra money to buy gas or pay for groceries. People who are not consistently bringing in enough money to cover their expenses. People who could easily end up using the last two options every month, instead of once in a while.

Why would Wachovia do such an irresponsible thing? A nationwide ad campaign that glosses over the risks of the product. A cutesy name that makes it sound like a game on "The Price is Right". Forcing bank employees to push this product on customers or risk losing their jobs.

Let me answer my own question. Back in 2006, Wachovia bought a company called Golden West Financial. Golden West specialized in - you guessed it - Pick-A-Payment mortgages. Wachovia spent years cultivating a conservative, by the books image centered around customer service. But in the world of super-charged creative financing, the standard 30 year mortgage didn't fly. It didn't get you noticed, it didn't pump up your stock price, it didn't make enough MONEY. So Wachovia traded for a marquee player - an exciting, creative superstar that brought it instant fame, glory, and edge.

Wachovia is not offering you this loan because it cares that you can't pay your credit card bill, or that the price of gas keeps going up. Wachovia is offering you this loan because it paid $25 billion for Golden West on the eve of the mortgage market collapse and now needs to make MONEY.

Luckily, a lot of people think Pick-A-Payment is a bad idea. Wachovia seems to be coming to its senses. It has stopped making the loans in some places, and will institute new underwriting guidelines including minimum credit scores and verification of employment.

If you want to do your part, here's a suggestion. If you are ever offered an option ARM (or Pick-A-Pay, or whatever they call it) and you are not independently wealthy, or don't at least have a investment portfolio worth six figures or more - 401(k)s don't count - run away from said offeror like your hair is on fire and your a** is catching. Not to be too blunt, but I'll sleep better at night knowing I might have saved one person from this disaster in a box mortgage.