Charlotte Homes Sold (Single Family Homes) Rose 12.5% in October
As dramatic as this is, it isn't the 20% reported by the Charlotte Observer, which included townhouses and condos, and appears to include the much wider CMLS area. (Odd, I would have thought those additions would lower their numbers.)
I pull my stats from the same Carolina MLS, but I limit it to the 9 counties closest to Charlotte, see those details below. My figures show average home prices falling 8.4% from October 2008 to October 2009.
Lets dig in and look at the First Home buyer and Luxury Home market, compare it with the Total Market.
Charlotte Homes Sold Under $250,000
In 2008, there were 1221 homes sold, and in 2009, 1450 homes sold, representing an 18.75% increase, 50% higher than the total market increase, reflecting first home buyer tax credits perhaps? Interestingly home prices fell only 1.36% in this market, to an average $76.68per sf
Charlotte Homes Sold Over $500,000, the custom luxury home market
In 2008, there were 117 Charlotte homes sold over $500,000, and in 2009, it was 115, representing a 1.71% decrease in sales, or 118% Worse than the market average reported above. Home prices in the Over $500K category fell 16% year over year to an average square foot cost of $160/sf in 2009.
The 115 Homes sold over $500K in October is 33% less than sold in October 2007, and 45% less than the peak year of 2006- not coincedental are reports that 2006 was the peak year nationally for "junk" loans.
So, while Charlotte October home sales in the "first home" category Under $250,000 have done very well, the luxury home market, over $500K, remains almost in a train wreck.
All data is derived from the Carolina MLS, but all figures reported are mine. The Stats come from the following counties and areas within the CMLS: Mecklenburg, Union, Cabarrus, Stanley, Iredell, Catawba, Gaston, Lincoln, the top half of York, and all the MLS areas of Lake Wylie, Lake Norman, and Mt Island Lake.
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Smart buyer's with good information, and a good Buyer agent, Make GREAT deals happen! Call me today, 704-351-1519 to get you started, or signup in our Search for Charlotte Homes- don't worry, no one will bother you and no spam, guaranteed.
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South Charlotte Custom Condominium Townhouse for Sale
If Golf's your thing... or Convenience-walk to major shopping areas, or neighborhoods, or you like fine things... then maybe...
7908 Greenview Terrace is for You!
Lets Have a look
The details? It has two large bedrooms, a den, and an open loft/office area, all finished to a very high quality level-10' ceilings down, crown moldings everywhere, 1st floor hardwoods, plantation shutters it is very lightly lived-in, and all the finishes you'd expect, all in walking distance to the Arboretum.
The mark downs have been taken, owner says sell, and the price is reduced to $324,900
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A smart buyer, good information and a good Buyer Agent Make GREAT deals happen!
Call us today, 704-351-1519, or use the link below.
Union County Real Estate Market Report- October 1-October 31,2009
Waxhaw, NC Homes for Sale- Homes Sold
There were 51 Homes sold in Waxhaw, at an average price of $395,148, on an average 3639 sf, or an average of $108/sf at a reported average of 98 Days on Market. In 2008, there were 38 home sales, at an average of $366,874, at an average sf of3373, at not quite $109/sf. So the market is holding steady '08 to '09.
Waxhaw Homes for Sale
At the end of October there were 572 homes for sale in Waxhaw. The average monthly Waxhaw home sales is 57 (Since June) which equates to about a rought 10 month supply of homes. certainly a strong buyers market, but not grotesque!
Weddington Homes For Sale
There were 7 homes sold in Weddington, at an average price of $713,214 on 5,118 sf, or an average of $139.00/sf, at a reported average of 187 Days on market. In 2008, there were 6 Weddington homes sold, at an average of $574,221, on 3,964 square feet, or $144/sf, and a reported Days on market of 94.
There were 122 Weddington Homes for Sale as of 10/31/2009. The average monthly sales- based on monthly sales since June, is 6.6, reflecting an 18 month supply of homes- bascially a buyers dream.
What accounts for this turn around--for decades Weddington led the way, now there is a strong bias in favor of Waxhaw, why?
The main artery to Weddington is Providence Road, and the expansion is nearing completion, but for the last 3 years Weddington has been nearly inaccessible.
First Home Buyers Tax Credits Affects Union County Homes For Sale Under $200,000
In the areas of 10-1, 10-2 and 10-3- the Weddington-Waxhaw-Marvin-Wesley Chapel area, there were a total of 131 homes sold.
Assuming a "First home balance"* sales price of $230,000- , there were 58 first home buyers in 2009, or 44% of the market. This compares with 34 home sales a year earlier, suggesting a dominant role in first home buyers in 2009- the tax credits at work .
*First Home Balance" sales price is an assumption based on the reality that there is no way to determine in real time who is a first time home buyer- but we know it is some percentage of our market. The "balance" works this way: take a home sales price number and assume that the number of homes sold, that were Not first home buyers, is offset by the people Above the sales price who WERE first home buyers. So when we "balance" the price at $230,000 for statistical analysis, we aren't saying all first home buyers bought below $230,0000 but that this quantity of sales is the balanced number we will uses to compare year to year, in this geographic area.
Remember, to qualify for the $500 Gift card, give us a call first-704-351-1519- we'll often get the right agent on the phone right then... and get you started. Sign up here for your Fast Start Guide to Buying Your First Home
Charlotte First Home Buyers Say Show ME The MONEY!
But Time Is Running Out! WAIT- not any more, First home buyer tax credits are extended!!!
--and as you can see they are REAL MONEY! Special thanks to client and first time Charlotte home buyer Liana M- happily living in her Ballantyne area townhome. ::::::::::::::::::::::::::::::::
First Home buyers- The McDonald Team offers a $500 Gift card to (your choice) Ikea, Pottery Barn, Crate and Barrel or Lowe's, but you must give us a call first-704-351-1519- we'll often get the right agent on the phone right then... new home or re-sale, and get you started.
First Home Buyer Tax Credit Extended, Move Up Buyers Get New Tax Credit
It is official. President Obama signed the bill Friday. The bill extends the existing first home buyer credit-And established a new tax credit for up to $6500 for qualifying "Move Up" buyers, and increases the income limits to qualify... welcome changes and a shot in the arm for home Buyers and Sellers
The bill extends the current $8,000 first time homebuyer tax credit (which was due to expire at the end of November) through April, 2010-however this is a "contracted by" date and you must close by July 1, 2010.
It also includes a tax credit of up to $6,500 for qualified move up buyers- you must have used the home as your primary residence for 5 of the last 8 years- and increases the borrower income limits for both credits to $125,000 for individuals and $225,000 for couples.
Home buyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction by June 30, 2010. The tax credit is limited to homes with a purchase price of $800,000 and below.
More details as we learn them but this is more that we had last February... lets go buy a home!!!
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We know there is a lot of inventory- 54 months according to my last post based on the first 9 months sales of this year... an almost 5 year supply of homes. Does the word sub-prime, or Pick-A-Pay mean anything to you? Or my preferred term, Junk Financing? Looking back, way back all the way to 2001, I charted the growth of the Over$1M market in the Carolina MLS. It is important to note, the slow but steady growth from 2001-2003, and then the sharp rise in 2004-61%, or an additional 82 homes. Thes 82 new 1M homeowners represent 24% of all the over $1m homes sold in 2001-2003. So what happened in Charlotte to account for this massive influx of new money - 82 homes to be precise... Did we bring a corporate headquarters here that year of significance? A NFL franchise perhaps? What would account for not just the 133 home sales of 2003, but another 83 or215 in 2004? What if I told you that Over $1M home sales jumped another 50% in 2005, and another 35% in 2006? Check out the chart, and see if you can answer that question we heard so often: "Where were all these people coming from who can afford these Million dollar homes?" In the peak year, 2007, 477 over $1M homes were sold. That is the equivalent of all the homes sold in 2001, plus 2002,2003, and most of 2004. Whaaat? Those of us who lived here know there is no explanation for this kind of increase in demand. Job growth was good from 2001-2203, and from 2004-2008 and that produced healthy increase in demand for housing, but not this good.
This is about greed, our insatiable desire to have everything NOW, and junk loans. Junk loans that created a false demand, or a bubble, and now, as many of these mortgage reset, are going to produce foreclosures at record levels in the next 3 years.
Since the junk loans are no longer available, and most of those loans reset in 3-5 years, demand is quickly falling to pre-junk levels, and foreclosures will mount as sales won't break 200 in 2009. And in 2010? I'm predicting about 150, and inventory still at 5 year levels. It is going to get worse before it gets better.tm
Is it safe to buy a home here in Charlotte? Yes- with conditions. Buy for the long term, buy in a blue chip neighborhood, and buy it cheap- We can help. We help with home finding, we do the research, and we take your lead in the negotiations.. 704-351-1519 Custom Homes in Stonecroft- Southpark area Over $1M Homes Sales Market Report
The Stimulus Plan and Charlotte- State Politics at Work Again AS Charlotte Receives $34.09 PP, Lenoir County $744 PP
Everyone is familiar with the national brouhaha behind The Economic Recovery Act, aka the stimulus plan... Is it possible that, at the State level, the funds could have been politically hijacked, and sent to primarily rural political strongholds in the state? It is possible that the rural interests gain once again at the expense of the cities that pay the state's bills?
The Stimulus invested $563,065, 282 in North Carolina, and of that $512,689,234 is "Under Contract", or allocated presumably with "shovel-ready " projects and contractors from around the state. Much of this data comes from ProPublica*
How was it decided who would get what?
North Carolina, 10th largest state in the nation, was treated fairly by the Federal Government. It has received the 9th largest State Stimulus Check at $563,065,282.
Where have the Federal Stimulus funds been allocated in North Carolina?
Since the Charlotte area is, by far, the largest county by population in NC , the largest contributor to state GDP, it is logical to assume we are receiving the largest amount for stimulus funding, right? No, not exactly. Surely it is Raleigh? No, not Raleigh either.RDU? Guess again...
Congressional District 5, Virgina Foxx (R) andSenarotr Burr's former District... Have a look for your self: The rest of the story- spending by Congressional District, and County Charlotte NC Stimulus
It's a new game with tax credits on until April 30, 2010!!!
"The $8,000 Tax Credit Looks Good, But how do I make a good decision when buying a home in today's market?" A recent Charlotte home buyer asked me... and made me think.
If you listened to the talking heads on TV, you would be convinced that the world as we know it is about to come to an end. Well no. We are still working here in Charlotte, going to work, selling homes, like about 2/3's of the rest of the country that have not experienced big price declines.
Still, in this market, there is a premium on Buying Smart. If you are thinking that is much more than "Buying Low" you are right!
5 Keys to Home Buying Success in Today's Market
1. Buy for the long term and plan to stay a minimum of 3 years, preferably 5-7 years. The longer you stay, the lower the risk in your investment. You get tax savings every year, and it just makes sense you have more time to let your home appreciate, and appreciation WILL be back in Charlotte before too long.
2. Buy a home in a community with a "Value- Anchor." What is a Value-Anchor? Anything that sets a particular set of homes apart to a large number of potential purchasers. Some examples include: The area it self, in Charlotte Myers Park, Southpark, these names have cache... not coincidentally they are closer to uptown. Waterfront, waterview, golf course, these are all homes that have attracted, and will attract a particular set of buyers.
The communities above are higher priced- you are starting out, maybe you can't afford these, then look for other value anchors, for example: communities with great natural beauty, communities with loads of amenities, communities with great schools (though this can change over 10 years) still look for a value anchor in every house or community. Close to town works almost anywhere. Other community anchors might be high quality amenities, larger lots (than the neighors) , great parks or greenways nearby, unusually convenient neighborhood, etc. There are too many to list, but I always ask, what is the value anchor, or value proposition for this home and community?
3. Buy Quality over quantity-Smaller, well cared for home with custom features are more and more preferred to a big plain box, and the dramatic shift in the last year is towards smaller homes. At any price point, look for the home with the most features, with attention to the feature that last.
4. Don't over buy, and finance with incredibly low 30 year Fixed which won't last forever. Current rates are around r 5%, and what a difference that makes. I bought my first home when interest rates were 11%! I made 45K per year and qualified for an $85,000 home- today, the same $45K could buy a home, with a 5% loan, at $175,000, with similar $1,000/mo payments to my first 11% loan. (Depending on down payment, taxes , HOA fees etc)
5. Shop for the right community, the right deal, and then the particular house- in that order, to insure you are most likely to be happy with your purchase and stay. You can make changes to the house to make it more to your liking, but if it is in a great community you want to live in, and you got it at a great price, that is something you can build on.
Do be sure and claim the $8000 Federal Tax Credit if you purchase by --November 30, 2009, April 30, 2010--it is FREE money.
In Search of Perfect "Advertising"- A Compelling Medium that Makes the Phone Ring With People Who Know Why They are Calling...
've looked for that perfect medium for 20 years. I've blogged for the past 18 months with substantial business (if not literary) success, and before that I ran large pay per click campaigns to generate web traffic and business. For the past three years, I've been the top revenue producing agent in our 800+ Agent firm in 2 of the three years, a Top Ten team in the out year, largely because of Internet traffic and families relocating to Charlotte NC.
But nothing, Nothing works like my Introduction to Charlotte video, that now ranks 3rd on Google for the mega keyword (4M hits) Charlotte NC...
A little background. I wrote this video in the fall of 2007 to answer what I saw was THE major question people had about Charlotte- "What kind of city is Charlotte?" I tried to answer this question every day, I found people didn't understand our city at all- there were those with no knowledge, we do fly quite a bit under the radar, and then there were the stereotypes to deal with, such as "Is Charlotte more like Andy of Mayberry... or Cannonball Run?" one caller asked only half-joking.
There was a second purpose too- the Internet has been excellent in producing quality clients with e-mail and sometimes phone contacts, but has never produced a lot of phone calls. As most of us know, the phone in lead is almost always a more urgent buyer, more of a "now" buyer, the one we are all looking for. So I asked, why don't more of these buyers who mark "Immediate" in their desire to move, why don't they call?
My thinkg was the biggest reason is fear of the unknown, fear of what they might get on the other end of the phone line. We've all experienced bad salesman of some kind, and many consumers are just afraid to call...fewer than one call in 10 has that nifty feature that "Block" s their phone number.
Charlotte has a good story, so my hope was that if I could share a lot about Charlotte, and a little about myself, I could break down those fears about Charlotte and introduce myself along the way. This video has succeed beyond my wildest imaginings...
So, the answer to that compelling question asked in the subtitle- the answer is a quality video, that sells your "product" AND You- and one that will be found, which is where You Tube and Google come in.
Introduction to Charlotte began its climb on You Tube. The popularity of the city, and the keywords in the Title and Description, helped its SEO value. Comments have something to do with it, and we were the beneficiary of a large if not 100% approval. However beyond that, there were no "optimizing efforts." I became aware of the rankings just after the first of the year as our phone began to ring at unprecedented levels ... after the 3rd day, I went online and just searched some keywords, and was excited by what I found. On You Tube my video has been #1 for Charlotte NC searches since October of 2008, and hit #1 for Charlotte NC Real Estate and Charlotte real estate in February. You Tube has become a search engine all its own.
But by a formula and reasons known only to Google, besides its prominent spot for Charlotte NC, it is #12 for Charlotte NC Real Estate, and #15 for Charlotte real estate, the 2nd and 3rd most searched keywords, and is moving up in these two important keywords.
A prospect called Friday, one without a home to sell (they will rent their California home) and one that has researched schools here, and opened a branch office here, and began their search for an Agent online where she saw the video, and she commented on something I said that she could relate to.The phone call came in with a "BLOCK" but she happily gave me her number after our conversation. They are coming to look for homes April 10, and are now buyers, the latest in a string that I am happy to report are impervious to the recession.
After a lifetime searching, I think I've found that "perfect" source of knowledgeable phone callers...
Please have a look at the video- I appreciate your sincere 5 star rating and real estate related comments.
If the bank listed the home at the BPO price, When is the bank most likely to begin accepting that lower price (80% of List) offer?
Deciphering bank motivation... I know I know, it may somewhere between astrology and palm reading, but here goes...
Here in Charlotte, where home values (though more recently declining) have remained relatively strong, it has to be on the market quite some time before they are willing to take that size (20% or so) of a discount. Conversely, in parts of California, I am told they accept substantial discounts within days of listing, why would that be?
What are the variables to consider? And while each bank/REO will be unique, are there any good rules of the road? Or at least a "Rule of Thumb?"?
I think the #1 determinant has to be: What is the likelihood of price declines in the next year?
The higher that likelihood, the sooner a bank would want to say "Let's Make a Deal." Interestingly enough, there are a number of companies that provide this information, the most widely used public (banks have proprietary date too) is from PMI, Private Mortgage Insurance which publishes those "likelihood of Price Declines" for over 350 markets in the US every quarter, and they use it to rate their proprietary private mortgage insurance.
The 120 Day Rule
One thing appears to be consistent here in Charlotte, banks and intermediaries get very nervous once on the market 120 Days. We have seen banks turn down offers of 90% of list in the first few months, only to accept 75-80% of list in month 5. We've seen a bit more flexibility early in the sale process on the less expensive REO's- could that be because even a 15% discount on a house priced at $125K is not a lot of cash comparatively speaking? Or perhaps a recognition that there are a LOT more REO homes priced in this price range and so getting an offer and getting it off the market is paramount?
One thing is for sure, if it lasts 120 days, the Sellers call us and say SELL IT, Bring us an Offer, and they mean it.
I am sure these are two of the external, local market factors Banks consider, but there largest motivation may be their own balance sheet, or their next meeting with regulatory (FDIC) agencies, how close they are to their required reserves, etc, and with these we would not have any idea of their motivation.... except watching now as the end of the first quarter is fast approaching... will that make a difference?
I would appreciate other agents from around the country to comment, possibly any asset managers, or others with REO experience. watching?
Charlotte NC- A relocated northerner came to build a life in Charlotte NC- I now try to preserve its Southern charm and move it into the future, at CharlotteCoomunitiesOnline.
At Terry McDonald Real Estate I tackle the traditional real estate problems and issues buying and selling homes- including market conditions, national market conditions, and the new home/custom home industry.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Union County Real Estate Market Report- October 1-October 31,2009
the over $1m homes sold in 2001-2003. So what happened in Charlotte to account for this massive influx of new money - 82 homes to be precise... Did we bring a corporate headquarters here that year of significance? A NFL franchise perhaps? What would account for not just the 133 home sales of 2003, but another 83 or215 in 2004? What if I told you that Over $1M home sales jumped another 50% in 2005, and another 35% in 2006? Check out the chart, and see if you can answer that question we heard so often: "Where were all these people coming from who can afford these Million dollar homes?" In the peak year, 2007, 477 over $1M homes were sold. That is the equivalent of all the homes sold in 2001, plus 2002,2003, and most of 2004. Whaaat? Those of us who lived here know there is no explanation for this kind of increase in demand. Job growth was good from 2001-2203, and from 2004-2008 and that produced healthy increase in demand for housing, but not this good.
;)
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