Real Estate Information Archive

We all know that the current low rates can't last forever.  It's not a question of if, but when home mortgage interest rates will rise. 

The following article is just one we are seeing about the future of mortgage rates.  In addition to increasing rates, you can expect qualification requirements to continue to be more stringent. So if you are considering a possible home purchase, now may be a better time to move forward with your plan.

Interest Rates Predicted to Reach 6%
Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Charlotte residential closings increased in April to 1773. While this number was down 26% from April 2008, April presented the fourth straight month of increase in closings. The average sales price of $201,532 was up approximately $20,000 over the lowest average posted in January of this year. 

Low interest rates, the first time home buyer credit and great inventory of excellent homes has fueled a surge of interest by buyers in the lower price points over the past six weeks. While activity at the lower price points, sales activity on homes valued over the convential loan limit ($417,000) still remain weak, people search for jumbo loan money. The good news for the higher price segment is some banks are now seeing an opportunity in jumbo loans and are starting to lend again. 

For any one looking to purchase a home in the future, I cannot stress enough how now might be one of the best opportunities in recent history. For additional statistics from the Charlotte Regional Realtors Association, got to http://carolinamls.epubxpress.com/link/rref/2009/jun/48?s=0 

Thinking about buying  or selling, let our team provide you with specific data regarding your selling or buying opportunity, by contacting me: gina@mayesharrisrealty.com

Pulling your hair out in trying to figure out how you can take advantage of the recent tax break announced for buying homes.  Let me simplify the complex language from the IRS.  First, there are two differnt tax breaks, but since the 2008 time has basically passed, here are the key points for the "2009 First Time Buyers.

• Must be your first home purchase for your primary residence (this means you and your spouse if married, did not own any other main home during the past three year period ending on the date of purchase.
• You must purchase (close) on your home between January 1 and November 30, 2009
• You will receive a tax "credit" of 10% of the purchase price up to $8,000 ($4000 if married and filing seperately) for the purchase.
• The amount  of tax phases out for buyers whose gross income is more than $75,000 for individuals or $150,000
• Great news!!!  Unlike the 2008 Tax Credit for home buyers, you do not have to pay the credit back PROVIDED YOU remain in your home for 36 months after the purchase date.
• You can get any additional information by going to www.irs.gov and look for Form 5405

So I urge you if you are hunting for your first home, this is the time to buy to take advantage of this tax break....

Unfortunately our national media tends to report on isolated and negative issues allowing facts to be distorted as it relates to the housing market. Our media has reported the decline of housing as being a national problem, suggesting all homes are losing substantial value.  That is simply not true.

When you research the facts, the major decline in values has occurred in the metro areas of Florida, Las Vegas, Phoenix, and California where large appreciation values were recognized over a very short time period, between 2003-2006.  Fortunately for the Carolinas, the appreciation in value was slow to rise, averaging only 4-6% per year, compared to the "hot" markets of Florida, California, Nevada and Arizona saw double digit appreciation in the same time period. 

The housing market is just like any other market in our economic society, when demand out paces supply, it becomes a seller’s market and when demand retracts it becomes a buyer’s market.  In the end however, the market finds a way to balance it’ self out over time.

There has been a softening in both demand and prices in the Charlotte market, but not to the extent our national media would make you believe. Since both supply and demand have been fairly balanced in the Carolinas over the past four years, we have not witnessed the steep price decline in many national markets. According to the Carolina MLS report just published, the average days YTD  for homes on the market in the Charlotte Metro area is 109 with the homes averaging 94,57% of Sales Price to List Price. These numbers vary according to neighborhood and MLS area.  Please feel free to contact me at gina@mayesharrisrealty.com for a report for your neighborhood.

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I would like to share with you this recent article from National Association of Realtors and Zillow.com which identifies the top 10 markets in the country showing the most gain.  Ironically, 6 of the top 10 are located in the Carolinas while 9 of the 10 worse markets are located in California.

The following article provided by National Association of Realtors  

Where Prices Have Increased the Most in 2008
U.S. Home values declined an average of 8.4 percent in the first three periods of 2008, down $2 trillion in total value, according to Zillow.com Real Estate Market Report, released this week.

Thirty of the 163 metropolitan statistical areas covered by Zillow, either showed gains in the median value of homes in the area or values stabilized.

Here are the 10 areas where values increased and declined the most.

Places Where Values Increased the Most

·     Ithaca, N.Y., 5.6%

·     State College, Pa., 4%

·     Jacksonville, N.C., 3.9%

·     Winston-Salem, N.C., 3.4%

·     Bay City, Mi., 3.2%

·     Rochester, N.Y. 3.1%

·     Greenville, S. C., 2.8%

·     Anderson, S.C. 2.7%

·     Burlington, N.C., 2.6%

·     Spartanburg, S.C., 2.0%

Places Where Values Decreased the Most

·     Las Vegas-Paradise, Nev., -24.6%

·     Bakersfield, Calif., -24.9%

·     Madera, Calif., -26.2%

·     Gainesville, Ga., -26.4%

·     Riverside-San Bernardino-Ontario, Calif., -30.4%

·     Modesto, Calif., -31%

·     Salinas, Calif., -32.4%

·     Merced, Calif., -32.5%

·     Vallejo-Fairfield, Calif., -33.2%

·     Stockton, Calif., -35.5%

Source: Zillow.com (12/15/08)

Once you purchase your new home, the fun begins in making it "your home". Want some great decorating or landscaping ideas?  The link below from Lowes and My Home Ideas can help, as you start to decorate or landscape your new home.

http://www.myhomeideas.com/myhome/photos/0,30587,1841376,00.html?iid=edit-mhw-111808&promkey=xet