Are We Starting to See a Sellers Market Emerging?

Posted: Monday, November 2, 2009 -Broker/Agent Magazine The housing market continues to steam forward. As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 8th consecutive monthly gain in September. It’s the longest winning streak in the history of the index and Pending Home Sales are now at their highest levels since December 2006. A Pending Home Sale is a home under contract to sell, but not yet closed.  It’s the precursor to an Existing Home Sale.  Trade group data shows that nearly 80 percent of “pending” homes close within 2 months.  The majority of those remaining close within months 3 and 4. When the Pending Home Sales Index rises, it tells us that market activity has picked up.  September’s data confirms what we’ve been noticing since February — the Buyers Market is ending. With more homes under contract in the marketplace, homebuyers typically face one or more of the following:    1. Competitive, multiple-offer situations    2. Reduced purchase price leverage over sellers    3. Fewer seller concessions Therefore, if you’re buying a home in the next several months, know that the 8-month run in Pending Sales will lead to a run in closed sales.  It should result in higher home prices, too Indeed, we’re already seeing it here in the Triangle.  Prices have adjusted enough that it is becoming more common than not to have multiple offers on a house now.  I have had several clients in this situation and have advised them to walk away unless they were willing to make full price offers.  Reason being that most sellers have priced their home competetively and cannot afford to take low-ball offers. As always, please visit me on my website at www.michellelpeters.com .

Here Are the Latest Housing Statistics in Raleigh

• Third quarter closings beat second quarter closings for the first time in 3 years
• The number of September 2009 withdrawn listings were the lowest amount during the past 4 years
• Total inventory down 14%, new home listings are down 39%, resale inventory down 1% Third quarter showings were 12% higher than third quarter 2008 showings
• North Raleigh showings are the second highest in the entire Triangle

As always, please contact me if you have any real estate questions or visit me on my website at www.michellelpeters.com .

Quick Green Tip for the City of Raleigh

If you are interested in replacing your toilets with Watersense, High Efficiency Toilets to save water and lower your water bills, the City of Raleigh is offering a rebate of up to $100 per toilet. Go to the City of Raleigh website to get detailed information.  There is money available now, but do it soon- property managers and  builders are getting on board so the allocated funds will not last long.

www.raleighnc.gov/portal

http://www.epa.gov/OWM/water-efficiency/pp/find_het.htm

I hope you found this information helpful.  Please visit me on my website at www.michellelpeters.com .

Michelle

Be "Green" with Envy!

Wake County Housing Update

Home Prices Are Better Than Ever!

Here is just a brief note to update you on the housing market in Wake County to date.  The median sales price is $200,000 with the average sales price being $260,033.  Sellers have continued to adjust their asking price and are now receiving 96.8%.

This is the latest information from the Triangle Area Residential Realty Report (TARR).  I hope you found this helpful.  As always please do not hesitate to contact me with questions about the market.  I can also be found on my website at www.michellelpeters.com .

Michelle

Real Estate is a Local Business

FOR THE RECORD
The Real Facts of N.C. Real Estate
Issue 5, September/October 2009

HOMEOWNERSHIP> The Pending Home Sales Index in June 2009 rose 6.7
percent above June 2008. That’s the first time since
2004 that gains have been recorded for five consecutive
months.
> N.C. existing home sales rose for the third consecutive
month in July while posting the smallest decline in three
years when compared to July 2008.
> Sales of newly constructed homes leaped unexpectedly
in July to hit their highest level since last September.
> Affordability is the single greatest reason to buy in
today’s market. In July, the affordability index remained
36.6 percentage points above a year ago and hovered
near an 18-year high during the second quarter.
> The supply of homes is declining, slowly but surely.
The inventory of homes at the end of July in 28 major
metropolitan areas nationwide was down 2.5 percent
from a month earlier.
> Construction of single-family homes rose in July for
the fifth straight month, edging up to the highest level
since October 2008.
> The $8,000 first-time homebuyer tax credit is effectively
getting buyers off the fence and into new homes.
First-time homebuyers accounted for 30 percent of
homes sold in July.
> For the first time in three years, U.S. home prices rose
in the second quarter.

Real Estate is local & You should choose a local expert!

 

FORECLOSURE FACTS
> HUD and FHA recently implemented the “Making
Home Affordable Loan Modification Program.” The program
aims to buy down loans by up to 30 percent of the
unpaid principal balance, defer these amounts until the
first mortgage is paid off and assist FHA servicers by
bringing mortgages current.
> Real estate truly is local. While the nation experienced
a 32 percent increase in foreclosure activity in July
compared to the previous year, N.C. maintained a 20
percent decline in foreclosures compared to July 2008.
ECONOMY
> Fayetteville and Burlington recently ranked in the top
10 nationally for strongest housing markets based on
the share of single-family homes in which values rose
in the second quarter of 2009.
> Though still high by most standards, the rate of job
losses has slowed significantly. Employers eliminated
247,000 jobs nationally in July, the smallest monthly
loss since last August.
> The government’s preliminary estimates show that
the economy’s downturn slowed markedly in recent
months, shrinking only 1 percent in the second quarter
compared to 6.4 percent in the first

July new US home sales up 9.6 percent

This just in…

WASHINGTON – New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month and beating expectations as the housing market marches steadily back from its historic downturn.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up more than 30 percent from the bottom in January, but are still off nearly percent from the frenzied peak four years ago.

The median sales price of $210,100, however, was off 11.5 percent from year-ago levels and down slightly from $221,400 in June.

Last month’s sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units.

In a kind of Cash for Clunkers effect, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

I hope you found this article useful.  As always don’t hesitate to call or email me with questions.  I can also be reached on my website at http://www.site.michellelpeters.com/

Michelle

There's still time to get a great deal!

Home Inspections: Do You Really Need One?

The short answer is “Yes”.  Although North Carolina is a Buyer Beware state and it is not required to purchase a home, I advise all of my clients to protect themselves and do a home inspection.  North Carolina is also one of a handful of states that requires a home inspector to be licensed in order to perform inspections.  So, for the consumer this is great news.

Some buyers feel a home inspection is unnecessary, especially if they are buying new construction.  If a light switch doesn’t work or the air conditioner blows out hot air, those are problems you can see and test. The problems that aren’t readily identifiable to you such as code violations, a furnace that leaks carbon monoxide or a failing chimney, are the types of defects a home inspector could identify in a new home. Builders’ contractors make mistakes, too. 

The following are items that are typically checked during the home inspection process.  Please note that this list does not include inspections for radon, pests, or other structural issues:

Structural Elements.
Construction of walls, ceilings, floors, roof and foundation.

Exterior Evaluation.
Wall covering, landscaping, grading, elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors, windows, lights and exterior receptacles.

Roof and Attic.
Framing, ventilation, type of roof construction, flashing and gutters. It does not include a guarantee of roof condition nor a roof certification.

Plumbing.
Identification of pipe materials used for potable, drain, waste and vent pipes. including condition. Toilets, showers, sinks, faucets and traps. It does not include a sewer inspection.

Systems and Components.
Water heaters, furnaces, air conditioning, duct work, chimney, fireplace and sprinklers.

Electrical.
Main panel, circuit breakers, types of wiring, grounding, exhaust fans, receptacles, ceiling fans and light fixtures.  

Appliances.
Dishwasher, range and oven, built-in microwaves, garbage disposal and, yes, even smoke detectors.

Garage.
Slab, walls, ceiling, vents, entry, firewall, garage door, openers, lights, receptacles, exterior, windows and roof.

Congratulate yourself if you’ve decided to do a home inspection on your next home purchase.  As always if you have any questions please don’t hesitate to contact me or visit me on my website at http://www.site.michellelpeters.com/.

Michelle

Be smart and do a home inspection!

Your New Home: From Finding It To Owning It

Here is a basic outline of what you can expect from the process of purchasing a home:

Step 1. The Offer-Have earnest money check and pre-approval letter ready. This is when the timeline will be established.

Step 2. Loan Application-You DO NOT need to use the lender on your pre-approval letter. You can shop for a lender, but choose quickly, and proceed with the application. Often times contracts contain a date by which you must make application.

Step 3. Homeowner’s Insurance-Call your current insurance company. Compare rates and coverage with other insurance companies. I can recommend some if you’d like. The insurance company will order a “Clue Report” to find past claims on the property.

Step 4. The Inspections-I strongly recommend home, termite, radon and, when applicable, well and septic inspections. In some cases your lender will require some of these inspections. These must be ordered quickly.

Step 5. The Repairs-Your inspector(s) will issue inspection reports. Use these to choose which repairs to request of the seller. Be prepared for issues with plumbing, electrical, HVAC, foundation and insulation.

Step 6. The Survey-Survey’s are highly recommended. They are ordered by the closing attorney at your request.

Step 7. The Title Search-Your closing attorney will order a title search. This will show any liens or other “clouds” on the property.

Step 8. The Appraisal-The appraisal is ordered by the lender. Homes in this market generally appraise for very close to the contract price.

Step 9. The Walkthrough-This is typically done the day of or day before closing. This is an opportunity for you to do a final visual inspection of the property.

Step 10. The Closing-Closings are handled by closing attorneys. You’ll need to deliver closing costs and down payment in certified funds. The attorney’s office will let you know exactly how much to bring. You will also need a photo ID. At the closing table, you will sign your documents and get your keys.

I hope this information has been helpful to you.  As always please don’t hesistate to contact me or you can visit me on my website at http://www.site.michellelpeters.com/,

Michelle

Finding & Buying Your Dream Home is Easy!!!

Pending home sales index rises again in June

THIS JUST IN…

WASHINGTON – The National Association of Realtors says pending home sales rose in June for the fifth straight month, another encouraging sign of life for the embattled U.S. housing market.

The Realtors group says its pending home sales index rose 3.6 percent to 94.6, from an upwardly revised reading of 91.3 in May.

The results were far better than analysts expected. Economists surveyed by Thomson Reuters expected the index to come in at 91.2.

The last time there were five consecutive monthly gains was in July 2003.

The report tracks signed contracts to purchase previously owned homes and is considered a barometer for future home sales. Typically there is a one- to two- month lag between a sales contract and a completed deal.

This is just more confirmation of my last post.  If you’re in the market to buy or just thinking about buying, please give me a call.  I would love to help you find your new home.  As always you can find me on my website at http://www.site.michellelpeters.com/.

I look forward to working with you.

Michelle

Come Jump on My Bandwagon!

More Multiple Offers on Triangle Homes

I just wrote about the multiple offer situation about a week ago and it has happened to me again.  I just put in an offer on a very nice foreclosure and found out that there is another offer coming right behind me.  Not only do I continue to be surprised by multiples offers, but I am very surprised at this one because the house is in the middle of no where. 

I said it before and I will say it again, THE MARKET IS TURNING AROUND HERE.  The bottom has likely already happened.  Once you start to see multiple offer situations on houses, that is a sure sign that the market is turning.  For me and my clients this has been going on for over a month now.

If you are a buyer and waiting for prices to continue to go down, you are making a huge mistake!  Think about it…when was the last time you heard a home owner say that they received multiple offers on their home?  Two, maybe three years ago is my best guess.

If you’re a buyer, I look forward to helping you find your new home.  As always, please contact me with questions or visit me on my website at http://www.site.michellelpeters.com/,

Michelle

Don't Let That Great Deal Pass You By!