Market Report: Q4 2011 and the Market Going Forward

Many people expected 2011 to be a recovery year for the housing market in Charlotte. While the market didn't recover quite as much as expected, overall 2011 was a better year than 2010. The average sale price in Mecklenburg County in 2011 was $195,000, down 8.3% from the average in 2010. I think part of this drop in price is because of short sales and foreclosures, which typically sell at 30% or more below market value, and part is because motivated sellers are becoming more realistic with pricing. The lower prices in 2011 coupled with continuously low interest rates caused many buyers to come off the fence, driving inventory down. At the end of 2011, there were 6,866 homes for sale-- down 30.2% from 2010. Closed sales (2,506) were up 12.1% from the end of 2010.

The months supply of inventory is down from 11.4 months in Q4 2010 to 7.4 months in Q4 2011. That's a 33% drop in inventory! Typically a balanced market is 5-6 months, a depreciating market (buyers market) is 7 months or more, and an appreciating market (sellers market) is less than 5 months. This 33% drop in inventory over the past year shows that the market is slowly becoming balanced.

The bottom of the market in Charlotte was in October 2010. We are still coasting along the bottom, waiting for it to come to the new market norm. This year is expected to be a better year than 2011 in terms of units sold. We will sell more units, but those units will be priced at the new norm for the neighborhood. As for appreciation, we can expect that to happen in 2013.

When I'm talking to clients or speaking to groups, I like to focus on what we know now and not the unknown. The future is unknown and we can only predict so much, but what we are faced with now is:

-Interest rates are at an all time low and realistically can't get much lower.
-There is a tremendous opportunity for buyers to make an investment and have the pride of home ownership.
-Consumer confidence is increasing and there are more buyers out there, causing multiple offer situations and increased competition.

I truly believe that 2012 will be a great year for the real estate market in Charlotte. While prices may drop slightly as we see more short sales and foreclosures hit the market, the opportunity for buyers is unlike anything we've seen in years. Interest rates should remain low, as 2012 is an election year, and the current prices are very affordable and present a great investment opportunity in many cases. Charlotte grew 186,000 people in 2011, which proves that it is a great place to work and live. I am excited to see what the spring months bring in Charlotte!

When the Prophet Says Buy – BUY!

John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”


He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:

Home Prices Relative to Peak Prices During the Bubble
Home Prices Relative to Construction Costs or Replacement Costs
Home Prices Relative to Incomes and Rents
Home Prices in Real Terms, Not US Dollar Terms

Bottom Line

If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.

By The KCM Crew on January 9, 2012

When the Prophet Says Buy – BUY!

Relocating to Charlotte in 2012?

It's hard to imagine that a city of almost 2 million people can feel small. For those who prefer the big city feel, a condo or flat Uptown will do the trick. If you prefer a smaller, family friendly neighborhood where everyone knows each other, venture south a bit. Regardless of what you are looking for, there is something for everyone in Charlotte.

When people think of Charlotte, many people immediately think banking. Well, at least they did before the economy started to decline. The truth is, yes, Charlotte is a big banking center- 2nd to New York City- however; despite what many people think, banking is not the industry responsible for the greatest number of jobs in Mecklenburg County. Retail trade is number one, and banking & insurance comes in at number two, followed by wholesale trade and manufacturing.


My interest in the city of Charlotte extends far beyond my career. I love Charlotte for many reasons- its rich history, location, climate, culture, etc. We are just 2 hours from the mountains, 3 hours from the beach, and a short plane ride to almost anywhere else in the country. Charlotte is a world-class city with so much to offer.





Here are a few reasons why it's good to live and work here:

-Low cost of labor (because of low union membership)
-Cost of living is below the national average
-High productivity
-#1 most educated workforce
-Excellent transportation: International airport with direct flights, major highways for transporting goods, close to 2 major ports (Charleston and Wilmington), center of the country's largest railroad system, public transportation (buses, light rail, new future streetcar system)
-Foreign trade zones (can import and export duty-free goods)

Schools:
-High test scores
-Many diverse programs
-Magnet programs for learning different languages
-Higher Education(over 35 colleges and universities in and around Mecklenburg County including: Queens College, Central Piedmont Community College, UNCC, Johnson & Wales, Johnson C. Smith University, Belmont, Davidson, Winthrop, Wingate, UNC Chapel Hill, Duke, Elon, NC State, and more)

Government:
-Taxes- inexpensive compared to other all other metropolitan areas of our size, more expensive compared to smaller cities but the services are higher
-We are progessive and diverse (government positions)

Diversity:
-over 850 internationally owned businesses here
-Huge Korean population
-#1 largest population relocating here: Hispanics

Sports:
-NFL, NBA, NASCAR, PGA, NHL/AHL Affiliates, AAA Baseball, and more

Outdoor Recreation:
-Tons of activities on Lake Wylie, Lake Norman and Mountain Island Lake
-Whitewater rafting, canoeing, kayaking, fishing
-36 public and private golf courses
-17,600 acres of parks & 33 miles of greenways

Arts:
-Symphony, museums, opera, concerts


Click here if you would like me to send you a free relocation packet. Let me know if I can answer any questions!

New Listing in Southpark!

1907 Wandering Way Drive in Woodbridge

Updated 3 bedroom, 2 bath home in desirable Southpark area! Spacious kitchen features granite countertops, tile backspash, separate desk area and breakfast nook. Sunken den has a big fireplace and door to screened porch. Large deck perfect for grilling and relaxing. Level, fenced in backyard with mature trees on a quiet streets. Just minutes to great schools, shopping, and fine dining! Offered at $329,900.

Click here for more pictures and information.

Allen Tate's First-time Homebuyer Guide has Launched!

I'm so excited that Allen Tate has finally released a new section of the website geared toward first time homebuyers! Most first time homebuyers that I've come across admit that they really aren't sure what they are getting into at first. Many have no idea what they can afford and what the costs are associated with buying a home. The First-time Homebuyer Guide on allentate.com answers many of these questions. It also has a series of short videos that take you through the entire process!

Check it out here.

One of my favorite parts of the First-time Homebuyer Guide is the Lifestyle Search tool. Charlotte is a large city, and for those unfamiliar with the area, it can be difficult to determine where you want to live having only information about specific houses and no information about the lifestyle in certain areas. One of the first things I try to accomplish when talking with new clients is what kind of lifestyle they would like to have. Once I know this, it's much easier to narrow the search and get into the fun part-- looking at houses!



I hope you find our new First-time Homebuyer Guide helpful and informative. Keep checking back on the website for more videos each week!

Under Contract in less than 3 weeks!

The three main reasons why homes sell are price, condition, and location. This is proof that if your house is priced right, in excellent condition, and in a great location, it will sell-- even in this market!

If you are thinking about selling your home within the next year, let me know and I will be happy to help you start preparing!

Staging Secrets to Help Sell Your Home

Can’t get HGTV to come stage your home for the market? Have no fear! There are things you can do without spending a lot of money to make your home stand out and sell quicker. Consider the five Cs when putting your house on the market.

•Curb Appeal – First impressions are lasting ones. What impression do buyers get when they pull up to your home? Make sure the lawn is freshly cut, shrubbery pruned, weeds pulled, and flowers planted to set the stage. Replace the dented mailbox, tarnished house numbers, and outdated light fixtures. Give the front door a fresh coat of paint and purchase a new welcome mat for the front porch.

•Clean – Make sure everything is spic and span. You might need to hire a cleaning crew to come in and give your home a thorough cleaning, including the carpets. In fact, having a cleaning service return weekly while your home is on the market is a good insurance policy for the clean rule. Make sure your home smells fresh and there are no pet or food odors.

•Clutter – There can’t be any! It may be necessary to rent storage pods while the house is on the market. The “50 percent rule” says eliminate the clutter in your home by at least half. De-personalize the house by removing political and religious items. Remove all personal photos. The buyer needs to be able to visualize the house as their home. They do not need to be distracted by your personal property.

•Color – Neutral colors sell! If you use colors and styles buyers would never select, then they cannot imagine themselves living there. Convey an image of neutrality and quality. You don’t want the buyer to walk away from your home simply because of taste-specific colors. Paint the walls with soft beige and accessorize with small splashes of color.

•Correct problems – Don’t give any cause for concern. Fix leaky faucets, broken tile and any other small items not functioning properly. Buyers assume if these minor things have not been maintained, then major problems could exist with the home. Don’t scare away the buyer. Paint the picture of perfection.
Think about model homes you have visited. First of all, they have curb appeal that makes you want to jump out of the car and go inside. Then, once in the home, it is clean, clutter-free, and color-neutral. You will not find broken items in the home. Everything works perfectly! You must have this “model-home mentality” when preparing your home for the market. It’s the small things that make the biggest difference.

Who needs HGTV when you have the five Cs? What are some of your best staging secrets?

From: Allen Tate Company, At Home in the Carolinas.