National and Charlotte Real Estate News :: February, 2011
Frequently, there are news stories that impact our Charlotte real estate market. Here are two I want to share with you this month:
Rising Interest Rates Could Get Buyers Moving
Rising interest rates may finally push Charlotte real estate buyers off the fence and into the market.
In December, after President Obama agreed to extend tax cuts for two years, the financial markets indicated this event would most likely push mortgage interest rates higher and, they have.
Analysts predict that buyers will continue moving now that rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales, U.S. economist at Capital Economics Ltd.
For an example of interest rate increases, note what happened Q4, 2010:
- On December 2, the 30-year fixed interest rate hovered around 4.46 percent.
- One week later, on December 9, it was up to 4.61 percent.
- On December 26, the 30-year fixed interest rate was up again to 4.875 percent.
Charlotte Foreclosure Rates Fall
Has the real estate market hit bottom? According to Realty Trac, foreclosure activity decreased dramatically in November with fewer than 300,000 properties receiving a foreclosure notice for the first time since February, 2009. While foreclosures typically decrease in November, and we’re already begun to see a rebound in foreclosure activity in early 2011, these statistics are not to be dismissed because they show the lowest level of foreclosure activity since November, 2008. Additionally, both the 21 percent month-over-month decrease and 14 percent year-over-year decrease in foreclosure activity were the highest drops recorded since RealtyTrac began publishing the U.S. Foreclosure Report in January, 2005.
Want to know more about the Charlotte real estate market? Give me a call or email me to discuss our real estate market. I look forward to hearing from you.