2008 Market Report for Lincoln County, NC

2008 Market Report for Lincoln County, NC

 By now most everyone has gotten back into the regular routine following the holidays. Barack Obama has been inaugurated as the new President of the United States and he will be trying to get Congress to come onboard for his plans to get the economy back on track.

2008 has ended with several changes in all markets, some good and some bad. In some areas of the country foreclosures and layoffs are making news daily. Other areas are now just beginning to show the effects from Wall Street and consumer spending. Other areas are starting to see consumers coming back into the real estate market.

Lincoln County overall was never part of the "real estate bubble" that affected many other parts of the country. Our prices did go up as buyers, able to procure higher loan limits, where able to meet seller's prices. But as the "mortgage melt down" began filtering down, foreclosures started creeping into neighborhoods, first with buyers' ARMs then with developers unable to sale but still making loan payments and unable to refinance their short term loans.

The last six months of 2008 ended with companies either merging or closing down causing layoffs; banks & mortgage lenders raising the criteria for loans for new homeowners and refinancing home loans; investors, who in the past had no trouble getting loans with little to no documentation, now have to verify income producing properties to satisfy lenders.

 I have produced some charts below showing the year end results of properties within Lincoln County that are still active, pending, and sold between January 1, 2008 and December 31, 2008. The information is based on scans of the Charlotte Multiple Listing Service (CMLS) and review of tax records for private sales (when available). The information provided is for informational purposes only and should not be used to determine the value on your home. For a true market value of your property, contact a licensed appraiser.

 2008 CMLS Home Statistics ⁺⁺

Homes are still available fitting a buyer's budget. Most sellers are willing to negotiate both price and/or terms as properties are staying on the market longer. Most real estate professionals agree that it is a buyers market but sellers want proof that the buyer has the means to buy before taking homes off the market.

Interest rates are still at historically low rates. Buyers can still find qualified home loans but should expect the loan process to take longer and require more documentation than a year ago. Mortgage brokers recommend that buyers interested in purchasing a home should get prequalified first as this helps to speed up the loan process when they find their dream home.

 2008 CMLS Land Statistics ⁺⁺

Vacant land sales both inside & outside established subdivisions are still a viable method for buyers who cannot find their dream home among existing homes being offered. Like home sales sellers are eager to negotiate as days on the market continue to increase. Several types of construction loans are still available for the qualified buyer and with construction of new homes slowing, a buyer can shop for a deal in building their new home using local builders.

2008 CMLS Commercial Statistics ⁺⁺

Even though several large local businesses have closed their doors, there are several stand alone commercial buildings for sale along with new mini-malls being built. These buildings range from warehouses w/office space to gas stations to restaurants w/land. There are also new construction buildings opening up for lease options. These small businesses are providing jobs for some of the laid off labor market and students looking for part time employment. As with residential loans, investors & small business owners should expect the loan process to take longer and require more documentation than a year ago.

 ++ Data Source: Carolina Multiple Listing Services, Inc.