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Lake Norman Real Estate Market Overview September 2009

By
Real Estate Broker/Owner with LKN Realty, LLC 242267

Lake Norman Waterfront Luxury Home

 

The future of our Lake Norman Real Estate market may depend as much on government and financial regulations and the progress of the US economy as it does on our local economy.  Nationally, the housing market has been greatly impacted by new regulations that have made the ability to get home loans much more difficult.  Since we rely so much on relocation buyers, Lake Norman's housing market gets hit twice, once with the difficulty of folks wanting to relocate here having problems selling their homes and once because our potential Lake Norman home buyers are having a hard time getting loans on purchases.  Here is a summary of some of the details related to our Lake Norman housing market:

The Home Valuation Code of Conduct rules employed by Fannie Mae and Freddie Mac since May 1, 2009 for home appraisers have had such a negative affect on the national housing market that the National Association of REALTORS, The Mortgage Bankers Association and the National Association of Home Builders have united in an effort to get the federal government to "establish consistent appraisal rules for FHA and the GSEs" (Fannie and Freddie) and gain official clarification of these new appraisal rules". 

Is the FHA (Federal Housing Administration) in trouble?  Rumors have been flying about whether the FHA is running out of reserves due to mortgage losses.  According to a recent press release, the FHA "will tighten credit standards and implement new rules for appraisals on January 1, 2010″.  They went on to say "FHA's insurance fund is sufficient to cover future losses, but the tighter policies will ensure that the loan guarantee remain self-sustaining...."  (David H. Stevens, FHA Commissioner).

The Federal Reserve will stretch out mortgage purchases according to their news release yesterday.  This means they will continue to purchase mortgage-backed securities that have helped keep mortgage rates low by extending the $1.25 trillion program's sunset from the end of 2009 to March of 2010. Good news!

The First-Time Home Buyer $8000 rebate expires November 30th. There are some efforts to get this extended but they don't seem to be getting traction.

A new bill was signed into law in North Carolina several weeks ago that is meant to stem the foreclosure rates.  The legislation requires a court clerk to determine whether a mortgage holder has been able to talk to their lender about working out a way to pay the loan and whether the lender has given the mortgage holder sufficient notice before trying to foreclose.    "This legislation allows time for loan modifications" according the NC Attorney General Roy Cooper.

From the trenches I can tell you that home loans and appraisals have been and continue to be a significant problem here in the Lake Norman housing market.  Lenders are now having to use third-party appraisal management companies to hire appraisers who in many cases are not experienced in the area of in which they are appraising properties.  Underwriters are taking second looks at the loan packages as late as the day of closing leading to days of delayed closings.  Most feel this is because the underwriters are afraid that the loan they approve many not be saleable to mortgage purchasers like Fannie and Freddie. 

Where is our Lake Norman real estate market today?  I just took a quick look at our September month-to-date numbers on our MLS.  With 39 closed sales so far this month, it looks like our September sales will be down from both last month and last year.  However, the pending and conditional home sales look a bit stronger so we may see a slight increase in closed sales in October.    Our inventory remains about the same as last month.   According to an article in the Charlotte Observer on September 10th the entire Charlotte area saw some positive signs.  However, Mecklenburg County "saw sales and prices down 12% " and "Iredell's average price decline of 17% was the biggest" of all of the counties. (Compared to 2008).

Where is the Lake Norman housing market heading?  Some of my savvy home buyers have jumped off the fence and are actively looking and buying.  This is because they feel there is a window of opportunity this fall.  With high inventories and dropping prices, sellers may be psychologically feeling more anxious than they will be when Spring comes and they have renewed hope that the market will improve. With interest rates back down to about 5%, I would have to agree that this fall may be a good time to make a move. 

Sometimes I wish I didn't have to write posts like this one.  I remember when buying a home was about just that, finding the right property in which to enable a family to create their dream  home...not an investment.  Some home buyers still feel this way but most care more than ever about the pricing and timing of their purchase.

 

Other Articles of Interest

Lake Norman Real Estate's September 2009 Hot Sheet 

Lake Norman Real Estate's August 2009 Sales Report

 Lake Norman Real Estate:  Why is it so hard to buy a home right now?

Comments (30)

Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Diane - this is another thoughtful and well-written analysis of your market, but one which impacts others in similar ways. A well-deserved feature. You clearly are very knowledgeable about the conditions that are affecting Lake Norman real estate.

Jeff

Sep 27, 2009 05:27 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Hi Diane! :)

Our area, gas, weather and government impact sales. In that order! :)

Sep 27, 2009 05:29 AM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Diane, great market post and I am glad to see it featured as an example of what a good market post looks like!

Sep 27, 2009 05:48 AM
Dianne Bartlett
Brightside Realty, LLC - Austin, TX

Diane - very thorough.  Thanks for the detailed info.

Sep 27, 2009 07:56 AM
Kent Neumann
Waterstone Mortgage- An Integrity based mortgage bank - Bend, OR
Mortgage Banker

All the news of the mortage changes are true, we just have to deal with the ever changing rules and guidelines.  Some day we will get real buyers with 20% down and good paying jobs....some day

Sep 27, 2009 08:17 AM
Susie Blackmon
Ocala, FL
Ocala, Horses, Western Wear, Horse Farms, Marketing

Beautiful report Diane. We certainly seem to be experiencing similar markets. We have another month or so before it get's even more quiet around my neck of the woods.

Sep 27, 2009 09:09 AM
Jamie Dumaine-Russell
RE/MAX Alliance - Branford, CT

Diane - This post sets you apart with the knowledge you have about the Lake Norman real estate market.  Your presentation of the factors affecting the housing market is very nicely detailed.  A very well deserved feature.

Sep 27, 2009 09:10 AM
Robin Dampier REALTOR®
Coldwell Banker King - Hendersonville, NC
Hendersonville & Western NC Real Estate Source

Diane -- we in the Hendersonville NC area can sympathize as we are also a Western NC destination area for folks including many retirees from up north and Florida.  Due to market conditions and consumer loss of investment income most/many of our buyers have to sell/close before they can purchase.

To add to the issue is the new HUD/RESPA rule/requirement for the Truth In Lending Statement if it differs at Closing from what the Consumer was provided at loan app -- a 3 day delay in Closing until reconciled:  http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm.  Talk about adding to stress levels when I know that in this area many loan packages aren't rec'd at the attorney's office until the day of Closing.  Geeze -- this affects all parties involved in the Closing and can add further expenses to the Sellers and Buyers.

As the housing/real estate market is such an important part of our economy you would think it would be wise to assist the market instead of coming up with more and more things to impede it!

A great Market Report and I could only wish and hope for a cheerier one in the not toooooo distant future, but, I sure won't hold my breath.  Lake Norman has always been a jewel.

Sue of Robin and Sue

Sep 27, 2009 09:57 AM
Robert Hammerstein -
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Hi Diane,

Congrats on your well written and deserved feature post.  These are tough times for all and we wish you a short turnaround to the upswing.

Lisa

Sep 27, 2009 10:13 AM
David O'Doherty
Clayton, NC
Clayton NC Homes, Raleigh, NC

Diane, good post, I've been to Lake Norman...beautiful! Good luck with the market.

Sep 27, 2009 12:46 PM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

So many changes in the mortgage market that even the lenders don't know the rules. It makes the process so difficult.

Sep 27, 2009 12:51 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

How is the Lake, isn't this the one that was drying up last year. That might have been laneir.

Sep 27, 2009 02:13 PM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Diane...I'm always impressed with the amount of information you provide on your market area.  As mine is somewhat similar to yours your updates are something I look forward to reading.

Kate

Sep 27, 2009 02:22 PM
Ginger S
Wilkinson & Associates, Wilmington NC - Wilmington, NC
Wilmington NC Real Estate & Relocation~

Diane, You did a great job pulling together your local real estate market analysis & current national market challenges. I am with you, longing for the day when will we get back to a purchasing house & making it a home to enjoy, & a place to build cherished memories.  There is so much analysis paralysis involved these days, in addition to all the bureaucratic boon-dogs!

Sep 27, 2009 03:40 PM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Debbie:  Yes, it is beautiful here!

Lenn:  Things just keep getting more challenging, don't they!

Tom:  Thanks!

Chris:  Thank you.  I think it is important for our market reports be put in perspective with the National trends.

Paul: I wish I knew!

Deborah:  Next time you are in Lake Norman, look me up!

David:  Yes, we do have great fishing here!

Allison: Thank you!

Carole:  Yes, there are times I wish it was more about a home than an investment but buyers and sellers have a right to be concerned about the values after this recession!

Sep 28, 2009 01:04 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Jeff:  Thank you for the kind words!

Candice: Yes, I lived in AZ years ago and I remember the market being pretty challenging

Russell:   Thank you!  I couldn't figure out why I was getting so many comments until I realized it was featured.  I certainly didn't expect that!

Dianne:  Thank you!

Kent:  Remember those days?  20% down was expected!

Susie:  Yes, our market do seem to parallel eachother, don't they?

Donna:  Thank you so much!

Robin and Sue:  Great comment.  It does sound like we are in similar markets.  Yes, there is no doubt that loans have gotten incredibly challenging just when we need to strenghten our sales.  It the reasons were rational I would better understand but many times the underwriters are just being unreasonable!

Lisa:  Thanks, all the best to you as well.

David:  Thank you.

Terry:  Every transaction is so unique with their own sets of problems and challenges.  Hopefully the lenders will get more consistency soon!

 

Sep 28, 2009 01:16 AM
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Nice market post....I know a bunch of agents that live and work in the Lake Norman area. I must visit sometime.

Sep 28, 2009 01:40 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Charles:  Lake Norman was impacted by the drought but because of the power plants and dams Duke Energy maintains our water levels and they are pretty consistent.  They were low but we were not as bad as many.

Kate:  Thank you for your continued support!

Ginger:  Yes, it would be nice but I wonder if we will ever go back?

Sep 28, 2009 02:13 AM
AZ Mortgage Broker: Michael George
Arizona Wholesale Mortgage Inc. - Phoenix, AZ
AZ Mortgage Rates

As others have written-- it looks beautiful.  But it sure is easy to have a panic attack when thinking about the mess this economy is is.

I hope rumors about the FHA are not true.  I might as well pack my stuff right now.

Sep 28, 2009 06:32 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Diane,

This is a great explanation for what's going on nationally and locally and how it effects the Lake Norman real estate market.

Sep 28, 2009 04:30 PM