Archive for April, 2009
Charlotte Commercial Real Estate Woes
Posted by Lisa in Charlotte Real Estate on April 21st, 2009
General Growth Properties, the company that owns Carolina Place Mall in Pineville filed for bankruptcy protection under Chapter 11 siting tough economic times, tightening of credit and high debt levels as its major contributors. The company, the second largest shopping mall owner in the country, was in the process of developing the new 1.3 million-square-foot mall in Mint Hill off of Lawyers road and I-485. The mall was slated to open in the spring of 2007 but for a variety of reasons, including a significant decline in consumer spending, work has been suspended on the project.
This news does not surprise me at all. All along we have been hearing about all the troubles the Charlotte residential real estate market has been having and it was only a matter of time before the commercial markets would follow. When you think about what precipitated all the residential woes, over building (too much supply), over extending (too much debt) and over confidence (too much belief in the consumers ability to continue to spend), it was foreseeable that the commercial markets would have the same problems. The bottom line is that we are going to see more and more of this as the year unfolds and we will need to flush all the residential and commercial problems out before we hit a sustainable bottom.
Ciao Bella
Charlotte’s own Bank of America Posts Earnings
Posted by Lisa in Charlotte Businesses on April 20th, 2009
Charlotte based Bank of America posted better than expected earnings for the first quarter of 2009 earning 44 cents per share as compared to 23 cents per share a year ago. This well exceeded the analysts forecast of 4 cents share.
That was the good news….the bad news was that the bank posted a loss of $1.8 billion on card services after posting a gain last year. CEO Ken Lewis indicated that “credit is bad and we believe credit is going to get worse before it will eventually stabilize and improve….whether that turn is later this year or in the first half of 2010, I’m not going to hazard a guess”.
Why do I write about this other than my love for the stock market? Ken Lewis’ comments about the deterioration of the credit markets gives us great insight as to how the economy may very well continue to struggle and even get worse in the near term.
Why is that important other than for the obvious reasons? Unfortunately the Charlotte real estate market is inexorably intertwined with the economy and as such we more than likely will see continued downward pressure on our markets. If people are not making their credit card payments I am fairly confident they are struggling with mortgage payments. Struggling with mortgage payments means a higher probability of defaults and foreclosures. More foreclosures mean more downward pressure on home prices in Charlotte.
I remain cautiously optimistic the economy can stabilize by years end and we can begin to see the bottoming of the Charlotte real estate market. Until then stay tuned….
Ciao Bella….
Charlotte Marketing Stats – Feb 2009
Posted by Lisa in Charlotte Market Statistics on April 18th, 2009
Foreclosures in NC Back on the Rise
Posted by Lisa in Charlotte Real Estate on April 17th, 2009
The Charlotte Observer reported foreclosures on the rise once again in the state of North Carolina. Filings for the month of March as compared to a year ago were up 11 % across the state while filings in the Mecklenburg county area rose 40%.
The slowdown we experienced over the last several months was in part due to the “moratorium” placed on foreclosures compliments of the government (Fannie Mae and Freddie Mac), the major banks and the new North Carolina law requiring lenders to give borrowers a 45 day notice before starting the foreclosure process.
What does this mean for you? The rise in foreclosures continues to put pressure on the already battered housing market. Why?…
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Foreclosures put price pressure on existing homes because they typically sell well below market value.
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Foreclosures usually are not in the greatest of shape (theory being if you can’t pay your mortgage you are probably not keeping the house up) and as such they can discourage potential buyers of existing homes from buying in that neighborhood.
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Foreclosures put more pressure on the already ailing banks which may force them to alter future lending practices. This translates into tighter mortgage standards and less money for potential buyers.
Although this is not a good sign it is not a surprising one. As I said in an earlier blog we are not out of the woods yet in real estate – but the bottom may very well be in sight. Until then, if you need help or have questions about foreclosures in North Carolina please check out NC Foreclosure Help.
Ciao Bella
First-Time Home Buyers Credit Compared
Posted by Lisa in Charlotte Real Estate on April 16th, 2009
I have found a super chart (compliments of Realtor.org ) that highlights all the major changes for the first time home buyers credit between the July 2008 version and the most recent one in January 2009. See Chart. All of you first time home buyers (i.e., anyone who has not owned a home within the last 3 years) really need to take a look at this.
The major highlights include:
- Increased credit amount from $7,500 to $8,000
- NO repayment required in the 2009 version
- Buyers who utilize the program can still obtain downpayment assistance from NC Bond and House Charlotte
With mortgage rates down in the 4’s this quite possibly is “an offer you just can’t refuse”. If you have any questions about the chart or the credit itself please email or call me. I would love to help you better understand this incredible offer.
Ciao Bella
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Lisa Wilkins
Lisa brings unique credentials and extraordinary skills and talents to the residential real estate market. She is a licensed real estate broker in North Carolina and South Carolina, and is a member of the National Association of REALTORS®. more>>>